When you choose to build a remote team to grow your tech company, hiring in emerging markets like Central Asia and Eastern Europe can provide a wealth of benefits. The tech industry continues to grow in the region and Armenia remains one of the drivers of that growth with the tech sector contributing to 7% of the country’s GDP.
Government investment in the Armenian tech sector has had a profound impact with a $4 billion AI Infrastructure Project, government cashback incentives for hiring companies, a rise in private code academies for developers, and the development of the Yerevan Hub. This rapid growth of the tech industry in Armenia has created a deep talent pool and made the country a recruiting hotspot for U.S.-based tech companies that are searching for remote tech talent, and when coupled with lower employment costs, Armenia checks all the boxes for hiring companies.
Tech companies interested in exploring the talent pool in Armenia may find that the Truss global hiring platform is a true asset — and in addition to helping companies find, recruit, and hire tech talent, Truss is available to serve as your Employer of Record in Armenia. If you are unfamiliar with how an EOR works and the benefits it provides, we have created this guide to hiring remote workers in Armenia with an employer of record.
Contact Truss today to find out how we can help you build a talented remote team for your tech company!
READ MORE: The True ROI of Hiring Remote Global Talent
Why Hire in Armenia with an Employer of Record?
An employer of record is a third-party organization that serves as the legal employer of remote workers in a different country. This makes the EOR responsible for payroll, taxes, benefits, and other day-to-day human resources tasks for your remote tech employees, which ensures that you remain compliant with the local labor laws in the country where you hire. When compared to the alternatives — creating your own local entity, working with a Professional Employer Organization (PEO), using an Administrative Services Organization (ASO), or hiring independent contractors — hiring with an employer of record provides an impressive list of benefits.
Benefits of Hiring Remote Employees in Armenia with an Employer of Record
Do you have your mind made up to build a remote team? Does an employer of record feel like the right fit for your tech company? If you are hiring remote tech employees in Armenia with an employer of record, you will discover a long list of benefits that include faster hiring, lower costs, compliance protection, and much more.
Here is a better look at the benefits of hiring remote employees in Armenia with an employer of record:
Faster Hiring
Creating your own legal entity in a foreign country for the purpose of hiring takes time, money, and effort with a timeline that takes 1 – 2 months to start hiring remote employees. When you partner with an EOR, you can hire and onboard a software developer with an established platform in about 2 – 5 business days without having to spend money to set up a local entity.
Lower Upfront Costs
Not only does setting up your own local entity take time, it costs money that not all tech startups or growing tech companies can afford to pay. The upfront costs of setting up a local legal entity are an estimated $2,000 – $5,000 with additional monthly fees for accountants, lawyers, physical office space, and more. By comparison — an employer of record requires zero upfront costs and flat monthly admin fees that range from $300 – $600 in many cases.
Lower Compliance Risk
When you hire remote employees in emerging markets around the world, it is critical that you remain compliant with the local labor laws or face financial penalties. When you partner with an employer of record, the EOR will handle the legal side of the hiring process and ensure that you remain compliant. When you set up your own local entity, you are responsible for compliance or need to hire a lawyer and accountant to handle the issue.
Better Tax Incentives
Hiring remote tech talent in Armenia provides companies with tax incentives that are hard to beat and an employer of record will handle taxes for your remote employees. Armenia has a 0% Employer Social Contribution and the tax burden falls on the employees. In addition to lower taxes for employers, Armenia has a 60% income tax cashback incentive for new tech employees and a 1% turnover tax for eligible tech companies.
Protection of Intellectual Property
It is critical that tech companies and startups protect their intellectual property and an employer of record can be a valuable asset. Armenia allows for software algorithm patents and an EOR can add clauses to employment contracts that protect intellectual property that includes specific strings of code and other applications.
READ MORE: What Are the Hidden Costs of Compliance for Tech Startups?
Choose Truss as Your EOR in Armenia
Armenia has solidified its position as a tech hiring hotspot in Eastern Europe and the Caucasus region — and Truss is here to help you find the talent that your U.S.-based tech company needs. When you make the decision to hire remote employees in Armenia, it is important that you remain compliant with local labor laws, and an employer of record is the best option. This guide to hiring remote tech employees in Armenia with an employer of record will highlight why an employer of record is the right choice for your tech company.
Truss provides tech companies with an end-to-end global hiring platform that includes employer of record services. With years of experience in Central Asia and the surrounding region, Truss can help companies find, recruit, hire, onboard, and manage remote employees. Provide the Truss Team with a list of skill and salary requirements, and we will provide you with a list of qualified candidates that check all the boxes.
Contact Truss today to learn more about our global hiring platform!
