PEO vs EOR: What’s the difference?

There are generally 6 differences between PEO and EOR:

1. Owning an entity: You DO NOT need to own an entity to hire foreign employees in another country via EOR.


2. Business registration: You must personally register your company in the country where you wish to hire your talents via PEO.


3. Employer Role: PEO is your co-employer, whereas EOR is your legal employer.
   Business Intention: You can tap into a PEO's HR expertise for business growth while expanding your business to MULTIPLE countries without an entity via EOR.


4. Contract: EOR shares the FULL employment liability of your company while PEO allows you to manage your employee's performances.


5. HR functions: Generally, EOR handles more HR functions and complex issues as the legal employer, whereas PEO handles fewer HR functions as companies generally have their HR team. View PEO vs. EOR comparison table.