It is a well-known fact that Colombia is a country with a strong economy and is considered to be one of the safest investments within Latin America. The nation gets more international fame among both local and international entrepreneurs because of its increasing economic growth, attractive business climate and range of commercial opportunities. Additionally, commercial activity and trade levels in Colombia have considerably increased thanks to a vast network of free trade agreements and its strategic geographic location, with access to both the Pacific and Atlantic Oceans. The overall economy of Colombia today benefits from various natural and agricultural resources, ranging from cattle and coffee to oil and emeralds, as well as an exploding tourism industry, which continues to grow year-on-year. These features make Colombia a great and thriving destination for international expansion and investment.
However, many business owners face challenges while trying to navigate the local labour laws of Colombia. One of the most challenging jobs is engaging and hiring local staff lawfully, which can be a huge headache for those without a comprehensive knowledge of the Colombia labour market and/or employment law. Working with a PEO provider in Colombia is a great method of expansion for companies who are new to market and have a limited understanding of employment law and regulationin Colombia. It is always important to consider the different methods that companies can engage and hire staff in a foreign country such as Colombia.
A Professional Employer Organization (PEO), also known as a ‘employer of record’ is a company that brings the required tools to support companies with their market entry. It allows companies tofind, engage andhire local employees with having a local company. Companies work with PEO service providers to engage in commercial activity without the hassle of forming and maintaining a local legal entity, which can often be expensive, time consuming and complicated.
Reasons to work with PEO Service Provider
The reasons to work with a PEO service provider will vary from one employer to another. PEOs can handle the various administrative and HR headaches of employing local staff. The PEO provider will ensure full legal compliance. Today, many SMEs are choosing to work with a local PEO provider given the range of benefits that come with this type of commercial relationship. Some PEO services include, but are not limited to the following:
- PEO solutionsfree up your valuable time and resources, allowing you toconcentrate on other important business tasks.
- Once a contract is successfully signed between a PEO and your business, it will distribute a segment of the legal responsibilities to the PEO, freeing you from unnecessary legal burden.
- The PEO has the responsibility of handling tax filing, payroll administration, provision of advantages,in addition to offering solutions relating to other HR functions.
- The only responsibility of your company is to continue with your daily business operations and to manage and direct the employees properly.
Things to know about staff selection
The labour market in Colombia is fully regulated, has a large and skilled worker pool and is dedicated to protecting the rights of employees. If you are an employer, you need to meet various legislative requirements according to Colombia law.In fact, compliance with the Colombian employment and lab our regulations is both time-consuming and costly, all the more reason to work with a qualified PEO provider in Colombia.
- Employment Contracts
The employment contracts in Colombia are classified into 4 types including short-term, fixed term, undefined length, and for a particular task. The duration and type of employment contract will vary from one employee to the next, affording you flexibility to best meet your needs.
- Foreign Workers
These individuals are subject to the same rules and regulations as Colombian workers. They must come with an official written employment contract from their employer and also have to have the appropriate working visa.
By law, the maximum number of hours an employee can work in Colombia is forty-eight hours (48) per week. This can be spread out between Monday to Friday or Monday to Saturday. Working hours can be flexible, but must be between 06:00 and 22:00 local time.
- Vacation Time
All local employees have the right to 15 days of paid holiday per year, half of which can be exchanged for pay with permission from the Ministry of Social Protection and Health.
- Minimum Wage
The minimum wage is negotiated yearly between the government and local trade unions. In 2018, the minimum monthly wage was COP $781,242 (approximately USD $260).
- Pensions and social security
The contribution is 15% of the monthly salary. Employers contribute three quarters of the payments and the employee covers the remaining quarter.
- Maternity and Paternity leave
All women are entitled to 12 weeks of maternity leave, which can be started 2 weeks before the birth of the child. The cost is covered by the Social Security System and can also be used in the case of adoption (for a child younger than seven years old). This also applies for a single father who adopts a child. It should be noted that it is illegal to fire a woman due to a pregnancy in Colombia.Fathers are afforded 4 days of paid leave if he is contributing to the Social Security System. If both parents are contributing to Social Security, then the father is entitled to 8 days of paid leave. In either case, the father must have contributed more than 100 weeks to Social Security System.
Employers are required to pay 12.5% of their staff’s salaries to a healthcare security fund.
For companies expanding to Colombia or looking to hire Colombian employees, working with a qualified PEO provider can be a great option. It helps mitigate much of the legal burden associated with employing foreign employees, and supports a more efficient route to market for a growing global company. It also frees up much of your valuable time allowing you to focus on what is important to you and your business.
Why Taking an MSME Finance Is Better Than Liquidating Your Savings?
A successful business can bring a good profit, and a smart businessman knows the value of saving an amount from that profit.
A successful business can bring a good profit, and a smart businessman knows the value of saving an amount from that profit. The savings are essentially a vital part of a business which can be used in time of emergencies. If you are a small business or a medium-scale business, then you know the emergency that can occur during business. There are many times when businesses use up their savings account for business needs even when they are not in a hurry. This can cause trouble when you are in a real emergency. There are many financing options that you can use instead of liquidating your savings.
The Bajaj Finserv is one of the financial providers that can provide a business with MSME finance. This loan is a better option rather than exhausting the savings. The MSME loan is given out to micro, small, and medium-scale businesses for their needs. These MSME loans are easily obtainable in just under 48 hours if you avail from Bajaj Finserv. You can use the MSME finance instead of personal savings for your business needs. Here are some factors that will set the matters straight for you regarding using savings or availing a loan.
High Financing Rates
The personal savings that you have accumulated may not be enough sometime. The loans that you avail are much more than personal savings. The loan amount can be invested in satisfying your business needs and then can be invested in upgrading your inventory. This will allow growth in your business furthermore. Bajaj Finserv provides loans up to 30 Lakhs at attractive MSME loan interest rates.
Instant Loan Approval
Although you may have instant access to your savings, you can also avail instant loans. The MSME finance from Bajaj Finserv made available to you instantly based on only two documents. There is a simple parameter for MSME loan eligibility, so it is a hassle-free process. The instant loan from Bajaj Finserv can be invested in buying infrastructure or machinery or expanding the business. You can also avail pre-approved offers over your loan amount to be able to avail maximum benefits out of your loan like receive instant finance in an extremely simple way. Instant funding can be beneficial to boost your business and expand your business operations.
Savings in Emergencies
The personal saving that you have accumulated can be used in emergencies that can be a threat to your business. The saving can be used to pay debts on tight deadlines for instance. The savings should be the last resort, and you can stick to loans for your basic business needs. The profit that you generate after using the loan can pay the EMI and even be added to the savings.
Prevents Risking in Initial Stage
In the initial stage when business is fragile and losing your savings, this soon is not good business. The MSME loans, for instance, can be used without any fear of losing your business or personal asset. The initial stages of a business are meant to accumulate funds for your savings so that it can be used in the future.
Here are some facts that you need to consider before choosing between MSME loans and personal savings. The personal savings can be used for a much critical situation so availing an MSME loan is wise during normal situations. Bajaj Finserv has helped many small and medium-scale businesses to grow and prosper with the help of MSME loan.
Improve your Credit Score with a Loan Against Property
Taking a loan against your residential or commercial property can help you fund your financial needs with ease by offering you substantial funds at a lower interest rate than collateral-free loans. However, you can also use a loan against property to improve your credit score. By paying attention to repayment and interest features of a loan against property, you can ensure timely EMIs, which can boost your score. Read on to know how you can achieve the same.
Consolidate Debt with a Loan Against Property
When you have credit card debt that is piling up or a personal loan that comes at a high interest, resulting in bouncing EMIs and late payments, your credit score is likely to suffer. You can consolidate all your outstanding debt with a loan against property. Debt consolidation loan enables you to save on your expenses while paying only one EMI at a nominal interest rate instead of making multiple payments at different rates of interest at different deadlines.
With a loan against property in India you can avail a substantial amount to pay off all your existing debt without having to look for additional funds from another source. With only one EMI date to keep in mind, you are less likely to miss out on your monthly payment. Additionally, your monthly cashflow isn’t majorly affected by these EMIs as they are smaller in value. This makes repayment easy. The successful repayment of your outstanding debt and timely repayment of your loan against property is sure to boost your credit score.
Take a Loan Against Property to Build Credit History
In an instance where you haven’t borrowed credit previously or haven’t borrowed credit in the last 36 months, it is possible that your credit score may be too low since you lack credit history. In such a case, it may be difficult for you to avail an unsecured loan like a personal loan without having to pay a high interest rate. So, choose to avail a loan against property instead. The loan against property eligibility criteria is simple and you can enjoy lower interest rates against the value of your home. Making timely payments towards your loan can then help you build your credit score while successful repayment of your loan shoots your credit score up.
In order for the above methods to help you increase your credit score, it is necessary that you borrow only as much as you can repay and choose a lender that offers you affordable loan options. Taking a loan from Bajaj Finserv for example will help you ease repayment and make it effortless too.
Additional Read: Clear all your Debts with Loan Against Property
Bajaj Finserv offers you a Loan against Property that gives you finance up to Rs.1 crore if you are a salaried individual and up to Rs.3.5 crore if you are a self-employed individual. This funding is available at low interest rates and with minimal documentation too. This, coupled with a short application form that doesn’t take too much of your time, enables you to have your loan processed within 72 hours. You can also benefit from online account management and minimal prepayment and part-prepayment charges. Furthermore, a Flexi Hybrid facility enables you to borrow as you need and pay interest only on the used amount. You can also choose to pay interest-only EMIs.
Keep the above points in mind and choose a lender that offers the best loan against property features to help you repay your borrowed loan easily and successfully.
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The Options That You Can Expect From A Discount Brokerage Firm
A lot of discount brokers along with firms are there in the market. All of them do work on one major objective and that is on how to churn in business from your end. They induce a lot of offers so that the traders look up to them for buying or selling of stocks. With their low percentage per transaction they grab the attention of traders. One such platform that has gone on to garner a lot of attention is Zerodha. A testimony to this fact would be Zerodha trading reviews set up in 2010 that has gone on to create ripples in the world of brokerage.
Before you go on to select a discount broker or a firm just check out the free incentives along with the ones that provides you with the best economical plans. In addition free information along with market reports are important. Some of them are going to provide you with free trades on how frequently you end up trading. How much money you are putting initially in your deposit account along with the total of the buying or the selling securities. Do consider all these options that are provided by the discount brokers. All these free incentives should go on to benefit your investment decisions.
Other factors in choice of an investment broker are free insurance protection. Just find out whether the amount of money you put in is covered by insurance, if any form of brokerage meltdown occurs for any definite reason. In the market of today there are lot of financial institutions that are finding it difficult to manage their funds and stay in the business. With increasing levels of pressure on these institutions or firms, the chances are pretty high that the firms might collapse or disappear. You need to ensure that the funds are protected in the event of such a situation arising.
A point to consider is that discount brokers do not provide investors with any investment decisions. But most of the brokers do go on to provide them with vibrant platforms along with software packages that would enable you to analyse the trends of the market. You can then craft and develop your own strategies based on the currencies or the global markets. This type of tool is valuable for an investor who is planning to opt for a strategic investment of various markets along with platforms.
Most of the discount brokers provide these charges free of charge if you do have a specific balance in your trading account. Sometimes it could be based on the amount of trades you execute. In case of some firms they are going to levy a charge based on using the platform via the computer or internet. Do choose your discount broker in a wise manner. They are much better than a full time broker as they let the investors in making decisions. They are not bothered whether you make a profit or loss till you trade.n