EOR, or Employer of Record, is a service that allows companies to hire employees in different locations without needing to establish a local entity. This arrangement simplifies the hiring process, as the EOR handles payroll, taxes, and compliance with local labor laws, allowing businesses to focus on their core operations. Using an EOR can be beneficial for companies looking to expand internationally or test new markets. It reduces the administrative burden and mitigates risks associated with employment regulations, making it easier for businesses to manage their workforce across various regions.