EOR (Employer of Record) is a legal employment structure that allows enterprises to hire employees compliantly without establishing a local entity. Galaxy registers as the legal employer in the target market, handling employment contracts, payroll, tax compliance, and labor law obligations. Your enterprise retains employee management control without needing a local office, bank account, or registration costs. Typical setup time is 5-7 days; costs range from 8-15% of monthly salary or USD 500-1,500 per employee per month (varies by market).
Galaxy registers as a legal entity in the target market, becoming the formal employer on your behalf, handling employment contracts, payroll, taxes, and labor compliance.
You directly manage employee tasks, performance, and development. Employees work under your direction, using your business brand and processes.
You don't need to register a local company, lease an office, or open a bank account. Launch quickly through the Galaxy platform, typically onboarding your first employees in 5-7 days.
Galaxy continuously monitors local labor laws, tax regulations, and social insurance requirements to ensure 100% compliance for your employees, payroll, and benefits.
In Asia-Pacific, EOR services typically cost 8-15% of monthly employee salary or a fixed fee of USD 500-1,500 per employee per month. Hong Kong and Singapore have lower rates due to mature regulations; Vietnam and Philippines have higher rates due to compliance complexity. Employer contributions like Mandatory Provident Fund (Hong Kong 5%), CPF (Singapore 17%), and Housing Provident Fund (China ~20%) are calculated separately but usually included in service fees.
Share candidate resumes, salary expectations, and job descriptions through Galaxy HRIS or directly with us. We immediately initiate identity verification and compliance review.
We assess compliance with local tax and labor laws and prepare compliant employment contracts. You and the employee sign contract copies to establish the employment relationship.
We activate employee accounts in HRIS and configure salary calculation rules, tax parameters, and social insurance settings. Employees can immediately access HRIS to view contracts, payroll, attendance, and benefits.
You submit monthly attendance and commission data; Galaxy automatically calculates payroll, withholds taxes, and processes social insurance. We disburse salaries on local schedules (monthly, bi-weekly, or weekly) with detailed reports.
We monitor policy changes year-round to ensure payroll, benefits, and tax parameters stay compliant. We handle annual tax filings, social insurance reconciliation, and year-end benefit closing to protect your legal standing.
| Comparison Item | EOR Services | Establish Local Company |
|---|---|---|
| Setup Time | 5-7 Days | 4-8 Weeks |
| Initial Cost | Low (No registration, office, or banking costs) | High (Registration, legal, office, accounts, etc.) |
| Legal Entity | Not Required (Galaxy Manages) | Required (Separate Legal Entity) |
| Administrative Burden | Minimal (Galaxy Handles) | High (You Handle) |
| Employee Scale | Suitable for 1-100+ Employees | Suitable for 10+ Employees & Long-term Operations |
| Compliance Responsibility | Galaxy Responsible | Enterprise Responsible |
| Flexibility | High (Adjust Anytime) | Moderate (Involves Legal Processes) |
| Monthly Cost | Based on Employee Count & Salary | Fixed office, HR, finance expenses |
In EOR, Galaxy is the formal legal employer with direct legal responsibility. Staffing companies only provide candidates; you establish the employment relationship directly. EOR handles payroll, taxes, compliance, and legal responsibility; staffing does not.
As the legal employer, Galaxy handles workers' compensation, dispute resolution, and legal liability. We maintain adequate insurance coverage and professional legal support, so you don't bear these risks.
Yes. Once you establish a local company, we can transition EOR employees to your direct payroll. We handle contract modifications, tax adjustments, and social insurance transfers, and fully assist the entire transition.
Monthly fees (8-15% of salary or USD 500-1,500 per employee) include payroll calculation, tax filing, legal compliance, HRIS system, and HR consulting. Social insurance contributions are deducted from employee salary. Optional items like additional insurance and benefits are negotiated separately.
No. Employees and clients communicate using your company name and brand entirely. Galaxy only handles backend administration and compliance, not business operations or management. You maintain 100% operational control and brand identity.
Give Galaxy 30 days' notice. We handle employee termination notices, final payroll settlement, tax filing, social insurance closeout, and data handover. The entire offboarding usually completes in 1-2 weeks. No long-term commitments; completely flexible.