Agent of Record (AOR)
A service provider that supports international contractor hiring by helping companies manage payments, compliance, and contracts.
What is Agent of Record (AOR)?
An Agent of Record (AOR) is a service provider that supports international contractor hiring by helping companies manage payments, compliance, and contracts - without becoming the legal employer. Unlike an Employer of Record (EOR), the AOR lets you stay the direct hiring party while handling the backend risk and paperwork. AORs are often used when companies want to retain control over contractor relationships, but still need help with legal classification and cross-border payments.
How it works
- When you hire a contractor in another country, local laws may require specific documentation, tax reporting, or proof of independent status.
- An AOR helps by:
- Reviewing and standardizing contracts for compliance
- Handling payment infrastructure (e.g. USDC or USD wallet payouts)
- Ensuring proper classification as an independent contractor
- Avoiding "permanent establishment" and misclassification risks
- You retain the relationship. The AOR handles the liability.
Why it matters
- AOR services strike a balance between DIY and full outsourcing:
- Control - You own the relationship with the contractor
- Compliance - Local labor laws are respected
- Cost-Efficiency - Cheaper than setting up a foreign entity or using an EOR
- Scalability - You can grow into new markets without legal overhead
- Platforms like Sigma act as an Agent of Record for global teams that want to move fast without giving up control.
Example
A U.S. company hires video editors in Colombia and software testers in Indonesia as independent contractors. They use Sigma's AOR service to handle compliant contracts and USD payments via wallets - but retain full control over task assignment, project scope, and timelines.
