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Employer of Record & PEO
Published:
September 21, 2026
Last updated:
Two EOR providers can cover the same markets, quote similar onboarding timelines and charge a comparable monthly fee, yet employ your team in very different ways. One employs your people through its own registered entity; the other hands the employer role to a local partner. Day to day, your employees may never notice the difference. It shows up only when a payslip is wrong, a filing is late or a contract needs changing, because that is when it decides who picks up the phone, how quickly the issue is fixed and who is accountable for it.
AYP Group is the first kind of provider. In Malaysia, the Philippines, Vietnam, Indonesia, Thailand, Hong Kong and Taiwan, AYP employs your team through its own registered legal entities, runs payroll and statutory filings through those entities, and answers for compliance directly. As a direct entity employer of record (EOR), AYP gives you one accountable party between your business and your people, with no third-party employer in the chain.
This guide explains how direct entity and aggregator EOR models work, what each means for your business, and how to check which model sits behind any provider you are considering.
An employer of record becomes the legal employer of your team in a market where your business has no entity of its own. Providers deliver this service in one of two ways.
Both models are legal. The difference lies in how many parties stand between your business and your employees, and what that means for control, cost and accountability.
AYP owns and operates a registered legal entity in each market below. In every one, AYP's entity is the legal employer of your team and manages the statutory obligations that role carries.
AYP shares the registered details of its entity in each market with every client before contracts are signed, so you can check them against the public company registry. Each market has its own employment law, contribution rates and filing calendar, and AYP's in-market teams manage these locally, one market at a time.
A chain is only as strong as its weakest link. Every additional party in the employment chain adds a point where something can slip.
AYP's service is built on three commitments: No Uncertainty, No Penalty, No Hidden Costs. Owning the entity in each market is what makes them possible.
AYP's in-market teams can walk you through what employing through AYP's entity looks like in your chosen markets, including costs, contribution rates and onboarding timelines.
A direct entity employer of record owns a registered legal entity in the market where your team works. That entity is the legal employer: it holds the employment contracts, runs payroll and files statutory contributions and taxes. No third-party employer is involved.
AYP owns registered legal entities in Malaysia, the Philippines, Vietnam, Indonesia, Thailand, Hong Kong and Taiwan. In each of these markets, AYP's own entity is the legal employer of your team.
Ask for the registered name and registration number of the entity that will employ your team, then check it on the local company registry: the Companies Commission of Malaysia (SSM), the Philippine Securities and Exchange Commission, Vietnam's National Business Registration Portal, Indonesia's AHU portal, Thailand's Department of Business Development, the Hong Kong Companies Registry or Taiwan's Ministry of Economic Affairs. The name should match the employer named on your employees' contracts.
Not inherently. An aggregator's fee typically covers both the provider's margin and the local partner's, while a direct entity provider charges one service fee. Your total cost also includes salary and statutory employer contributions, which are set by law in each market and apply under either model.
AYP's registered entity in that market is the legal employer. It holds the employment contract, runs payroll and meets statutory obligations. Your business directs your employees' day-to-day work, responsibilities and performance.
