AOR, CoR, and EOR?
Three different service models for hiring international talent: Agent of Record (AOR), Contractor of Record (CoR), and Employer of Record (EOR).
What is AOR, CoR, and EOR??
When hiring international talent, companies often face a tough question: What type of service do I actually need? • Do you want to hire full-time employees abroad? • Or pay independent contractors across borders? • Or stay in control while outsourcing compliance? This is where EOR, CoR, and AOR come into play. They're often confused - but they solve very different problems.
| Term | Stands For | Legal Employer? | Best For |
|---|---|---|---|
EOR | Employer of Record | Yes (They employ the worker) | Full-time employees in foreign countries |
CoR | Contractor of Record | Yes (They contract the freelancer) | International freelancers, you want to be fully offloaded |
AOR | Agent of Record | No (You remain the employer) | Contractors, where you want to stay in control but reduce risk |
Real Use Case Examples
- A U.S. startup hires a full-time engineer in Argentina → uses an EOR to issue a compliant employment contract and handle taxes.
- A design agency wants to pay a video editor in Brazil → uses a CoR to handle contracts and classification for a freelancer.
- A marketing firm has contractors in Colombia and Kenya but wants to manage relationships directly → uses an AOR for compliance support while staying the legal payer.
How to Choose: EOR vs CoR vs AOR
| Scenario | Best Fit |
|---|---|
You want to hire employees with benefits, social security, and protections | EOR |
You want to work with international freelancers and don't want to deal with contracts or compliance | CoR |
You want to manage your own contractor relationships but need help with payments and compliance | AOR |
Why It Matters
- Choosing the wrong model can lead to:
- Worker misclassification fines
- "Permanent establishment" tax exposure
- Delays in onboarding or blocked payments
- Sigma offers all three options, helping you grow your team globally - without the legal or operational friction.
Still not sure? Many companies start with AOR or CoR for flexibility, then shift to EOR if they scale into employee relationships.
