OverviewWhat PEO and EOR mean in Brazil
Setting up a legal entity in Brazil takes time — often months — and requires ongoing accounting, tax and legal maintenance regardless of how many people the company actually employs locally. A Professional Employer of Record (PEO) offers a faster, lower-risk path: hire in Brazil without opening a subsidiary.
PEO vs. EOR vs. setting up a local entity
| Model | Legal entity required? | Best for |
|---|---|---|
| PEO | No | Testing the market or short-term projects |
| EOR | No | Hiring a small number of employees without local incorporation |
| Local entity + direct hiring | Yes | Long-term, large-scale presence in Brazil |
Both PEO and EOR let a company hire compliant, full-time employees in Brazil without incorporating — the main practical difference is how the relationship is structured contractually and how much HR control the client company retains.
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Why foreign companies choose PEO/EOR over direct hiring
Speed
Hiring can start in days instead of months, with no need to wait for entity registration.
Compliance
Payroll, FGTS and labor obligations managed by a provider that already knows CLT rules.
Flexibility
Scale the team up or down as your Brazilian operation proves itself.
Managing a remote or distributed team through PEO/EOR
Many international companies use PEO/EOR specifically to hire remote employees in Brazil rather than opening a physical office.
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Frequently asked questions
Can I hire employees in Brazil without a local company?
Yes — through a PEO or EOR arrangement, Gescon becomes the legal employer while you direct the employee's day-to-day work.
Is PEO/EOR permanent or temporary?
Either. Many companies use it as a starting point before opening their own entity, while others use it long-term for small teams.
Does PEO/EOR cover mandatory Brazilian benefits like FGTS?
Yes — all mandatory obligations, including FGTS, 13th salary and vacation pay, are managed by the provider.