Agent of Record (AOR)
What is an 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 an AOR 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 AOR 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 SigmaRemote act as an Agent of Record for global teams that want to move fast without giving up control.
Example Use Case
A U.S. company hires video editors in Colombia and software testers in Indonesia as independent contractors.
They use SigmaRemote’s AOR service to handle compliant contracts and USD payments via wallets - but retain full control over task assignment, project scope, and timelines.
Related Glossary Terms
Contractor of Record (CoR)
Employer of Record (EOR)
Cross-Border Compliance
Contractor Classification
Explore More
📘 [Compare AOR vs EOR: Which One Fits Your Hiring Model?]
📘 [Explore how SigmaRemote protects you from misclassification]
📘 [Read our Global Hiring Compliance Guide]
Related Terms
USD Wallet
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USD Wallet
FX Fees
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FX Fees
Global Payroll
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