EOR Case Study: Seamless Expansion in Latin America with Employer of Record Services
Industry
Automotive Manufacturing
Region
China-LATAM
Service Provided
Employer of record (EOR)
5
countries covered
$150<k
saved on entity setup and HR overhead
100%
compliant hiring and payroll process
0
legal risks in multi-country hiring
Table of Contents
Key insights: EOR-powered expansion in Latin America for an automotive manufacturer
- 5 countries in Latin America for expansion
- $150,000 saved on entity setup and HR overhead
- 100% compliant hiring and payroll process
- Zero legal risks in multi-country hiring
- Rapid onboarding for international & local staff
- Seamless workforce transfers across regions
- Trilingual support in Chinese, English, and Spanish
This employer of record case study shows how EOR services allow global manufacturers to test and enter multiple Latin American markets quickly, without the cost and complexity of setting up local entities.
Client overview: Chinese automotive manufacturer expanding into Latin America with EOR
- Industry: Automotive Manufacturing
- Headquarters: China
- Expansion Region: Latin America
Like many global manufacturers, the client needed a reliable employer of record partner in Latin America to hire local staff and relocate international employees without creating legal entities in each country.
Challenges: entering five Latin American markets without local entities
A leading Chinese automotive manufacturer sought to expand into five Latin American countries, aiming to capitalize on the region’s growing automotive market. However, the company faced several challenges:
- Complex Regulatory Environments: Each country presented unique labor laws, tax regulations, and compliance requirements, making it difficult to establish operations swiftly.
- Rapid Talent Acquisition: The need to onboard both international and local talent quickly to meet operational timelines.
- Cultural and Language Barriers: Navigating diverse cultural norms and languages without existing local infrastructure.
- Cost and Time Constraints: Establishing legal entities in multiple countries would be both time-consuming and expensive.
Solutions: employer of record (EOR) services for multi-country expansion
To overcome these challenges, the company partnered with Serviap Global, leveraging our Employer of Record (EOR) services to facilitate a smooth expansion:
- Regulatory Compliance: Ensured adherence to local employment laws, tax obligations, and labor regulations in each target country.
- Efficient Talent Onboarding: Managed the recruitment and onboarding processes for both Chinese expatriates and local hires, ensuring seamless integration.
- Comprehensive HR Support: Provided ongoing human resources support, including payroll management, benefits administration, and employee relations.
- Cost-Effective Expansion: Eliminated the need for the client to establish separate legal entities, reducing both time and financial investments.
The impact: compliant hiring, $150k savings and zero legal risks
By utilizing Serviap Global’s EOR services, the company achieved:
- Swift Market Entry: Established operations across five countries without delays associated with entity setup.
- Compliance Assurance: Maintained full compliance with varying local laws, mitigating potential legal risks.
- Operational Efficiency: Focused on core business activities while outsourcing HR complexities.
- Cultural Integration: Facilitated effective communication and collaboration among a diverse workforce.
By using Serviap Global as its employer of record in Latin America, the client combined speed-to-market, cost savings, and risk reduction in a single EOR solution.
Industry context: Latin American automotive market and the role of EOR
The Latin American automotive industry has been experiencing significant growth:
- Market Size: In 2023, the region reported 4.9 million vehicle sales, marking a 4.1% increase from the previous year, making it the fourth-largest sub-regional market globally.
- Production Hubs: Mexico and Brazil lead the region, with Mexico producing over 3.5 million vehicles annually, positioning it as the seventh-largest passenger vehicle manufacturer worldwide.
- Foreign Investment: Chinese automotive companies, such as BYD, are investing heavily in Latin America, with plans to produce 150,000 vehicles annually in Brazil, highlighting the region’s strategic importance.
Benefits of Employer of Record (EOR) services:
- Rapid Expansion: Enables companies to enter new markets quickly without establishing legal entities.
- Compliance Management: Ensures adherence to local labor laws and tax regulations, reducing legal risks.
- Cost Savings: Avoids the expenses associated with setting up and maintaining foreign subsidiaries.
- Focus on Core Operations: Allows businesses to concentrate on primary objectives while outsourcing HR and administrative ta
Conclusion: how employer of record accelerates Latin American expansion
By partnering with Serviap Global and utilizing EOR services, the Chinese automotive manufacturer successfully expanded into Latin America, navigating complex regulatory landscapes and rapidly establishing a compliant and efficient workforce. This strategic move positions the company to capitalize on the region’s burgeoning automotive market, driving growth and competitiveness.
If you are an automotive or manufacturing company planning to expand into Latin America, our employer of record (EOR) services can help you hire quickly, stay compliant, and avoid entity setup costs. Talk to our team to discuss your expansion plan.
FAQ's
1. How did employer of record (EOR) services support expansion into five Latin American countries?
By partnering with Serviap Global as its employer of record, the company hired both local and international staff in five Latin American countries without setting up legal entities. Serviap Global handled local contracts, payroll, taxes, and benefits, while the client focused on launching and scaling operations.
2. How much did the company save by using EOR instead of creating local entities?
By choosing an EOR model over setting up separate legal entities in each country, the company saved approximately $150,000 in entity setup and HR overhead, while still maintaining compliant hiring and payroll processes.
3. How did Serviap Global help reduce legal and compliance risks?
Serviap Global ensured that all employment contracts, payroll calculations, and tax obligations followed local regulations in each Latin American market. This approach allowed the client to operate with zero legal risks related to hiring and HR compliance across the region.
4.Why is Latin America an attractive region for automotive manufacturers using EOR?
Latin America has a growing automotive market with millions of vehicles sold annually and strong production hubs such as Mexico and Brazil. EOR services allow automotive manufacturers to tap into this opportunity quickly, hiring local teams and relocating specialists while avoiding the delays and costs of establishing legal entities.