A local service provider acting as the legal employer for a company’s employees in Singapore manages payroll, taxes, and compliance with local labor laws. For example, a foreign company wishing to expand operations into Singapore without establishing a local entity can leverage this arrangement. This service manages all administrative burdens associated with employment, allowing the client company to focus on its core business activities.
Utilizing such a structure offers significant advantages, including streamlined entry into the Singaporean market, reduced administrative overhead, and mitigated compliance risks associated with complex labor regulations. Historically, this model has gained prominence as businesses increasingly seek flexible and cost-effective solutions for global expansion. It allows companies to rapidly establish a presence in new markets without navigating the intricacies of local legal and regulatory frameworks.
