Hiring without an entity in Singapore
EOR vs PEO in Singapore: Hiring Without Your Own Entity
In Singapore, an employer of record (EOR) is the legal employer of your hire, so you can employ someone without registering a company. A PEO, in the American sense, shares employer duties with a business that already has its own entity. Many Singapore providers use “PEO”, “employee leasing” or “staff leasing” for what is really an EOR, so the question to ask is simple: who signs the employment contract?
Last reviewed in October 2026 against MOM, CPF Board and IRAS sources.
Four ways to employ or engage someone in Singapore
| Model | Legal employer | Do you need a Singapore entity? | Usually suits | Watch out for |
|---|---|---|---|---|
| Your own company | Your Singapore Pte. Ltd. | Yes | A long-term team, local customer contracts | Setup time and yearly running costs |
| Employer of record (EOR) | The EOR’s Singapore entity | No | Hiring Singapore citizens and PRs: first hires, testing the market, small teams | Not the route for foreigners who need a work pass |
| PEO / co-employment | Shared with your own entity | Yes | Rare in Singapore; more common in the US | Providers using the word for an EOR service |
| Payroll outsourcing | Your Singapore entity | Yes | You have a company but no payroll team | You keep all employer liability |
| Contractor | None: a contract for services | No | Defined projects done by someone running their own business | Misclassification if the person works like an employee |
Why the word “PEO” causes confusion in Singapore
Singapore has no legal category called PEO. The labels you will see are commercial ones:
| Label | What it usually means in Singapore |
|---|---|
| Employer of record (EOR) | A provider’s Singapore entity employs the person; you direct the work. |
| PEO or professional employer organisation | Often the same EOR service. Occasionally HR and payroll support for a company that already employs its own staff. |
| Employee leasing or staff leasing | Usually EOR. Sometimes a staffing agency supplying workers it recruited itself. |
| Global employment organisation (GEO) | Another name for an EOR that works across several countries. |
Licensing: Singapore has no specific EOR licence. But anyone who recruits or places candidates for other companies needs an employment agency licence from MOM. If a provider will also find candidates for you, ask for its licence number. MOM: who needs a licence
When an EOR fits, and when it does not
EOR usually fits when
- The person is a Singapore citizen or permanent resident
- The role is ongoing and you will manage the work
- You have no Singapore company, or it is still being set up
- You want to test the market before committing to an entity
Look at another route when
- Your candidate is a foreigner who needs a work pass (see Hire Foreigner in Singapore)
- You plan a large local team or will sign contracts with Singapore customers
- You already have a Singapore company (use payroll outsourcing)
- The work is a fixed project with clear deliverables (see on-demand talent)
Hiring a foreigner instead?
A Singapore EOR is for employing Singapore citizens and permanent residents. A foreign candidate first needs an Employment Pass, S Pass or Work Permit, which is a different process with its own rules and costs.
At NNRoad, foreign hires are handled by a separate service. See Hire Foreigner in Singapore.
Who does what under a Singapore EOR
| Task | NNRoad (the EOR) | Your company |
|---|---|---|
| Choosing the candidate and the salary | ✓ | |
| Employment contract and Key Employment Terms | ✓ | Approves the terms |
| Day-to-day work, goals and reviews | ✓ | |
| Monthly payroll, payslips and salary payment | ✓ | Confirms variable pay |
| CPF and Skills Development Levy | ✓ | |
| Leave records | ✓ | Approves leave |
| IR8A reporting to IRAS | ✓ | |
| Equipment, systems access and workplace | ✓ | |
| Ending the employment | Handles notice, final pay and CPF | Makes the decision |
See the full service and pricing on our Singapore employer of record page.
Moving from EOR to your own company
Most companies treat EOR as a bridge. Common reasons to move: you start invoicing Singapore customers or the team has grown enough to justify your own payroll.
- Register your Singapore company and open a bank account.
- Agree a transfer date with the employee and with us.
- The employee signs a new contract with your company. Recognising their earlier service for leave and notice is a commercial choice you make in the new contract.
- We run the final EOR payroll, CPF and tax reporting, then refund the deposit after the final invoice.
- If you want, we keep running payroll and CPF for your new company. Singapore payroll outsourcing.
Questions about EOR and PEO in Singapore
Is PEO legal in Singapore?
Yes, in the sense that the services are legal. Singapore law simply does not define a PEO. What matters is who the employer is in the contract and that the employer meets the Employment Act, CPF and tax rules.
Is an EOR the same as employee leasing?
Often, yes. In Singapore, many providers call their EOR service employee leasing or staff leasing. Check whether the provider’s entity signs the employment contract and whether it also recruits the worker.
Does an EOR need a licence in Singapore?
There is no EOR-specific licence. A provider that recruits or places candidates for clients needs an employment agency licence from MOM.
Can an EOR employee work from home in Singapore?
Yes. Remote and hybrid work are common. The employee still has the full protection of the Employment Act, and employers must consider formal requests for flexible work under the tripartite guidelines in force since 1 December 2024. MOM
How long can we use an EOR?
There is no legal time limit. Some companies use EOR for a few months while they set up an entity; others keep one or two employees under EOR for years.
How much does an EOR cost in Singapore?
NNRoad charges 8% of the monthly total employment cost, minimum US$375 per employee. See the cost guide with worked examples.
Not sure which model fits your hire?
Tell us who you want to hire and whether you have a Singapore company. We will recommend a route within 24 hours, even if it is not EOR.