When most people hear about Greenland, they think of a cold and remote country. However, Greenland is much more than that. It has a unique culture, breathtaking landscapes, and endless opportunities for businesses to thrive.

The country’s own economy relies largely on fishing, sealing, hunting, and whaling. However, it’s not just local businesses that can succeed in Greenland. Greenland is also open to foreign investments and partnerships, especially in sectors other than fishing and hunting.

Its last recorded gross domestic product (GDP) was USD 3.24 billion, which is high for a small population of less than 60,000 people. The GDP per capita is more than USD 57,000 which makes it one of the richest countries. Even more enticing is the fact that Greenland’s GDP is growing annually at an impressive rate of 1.3%.

Apart from public administration and service, the industry with the highest number of employees in the country is fishing. On average, fishing businesses employ 4,335 individuals, followed by wholesale at 3,020, construction at 2,268, and transportation at 1,953 employees. The over-reliance on the fishing industry is understandable, considering fish accounts for more than 90% of the country’s exports.

Sector
Contribution to GDP
Agriculture
15.9%
Industry
10.1%
Services
73.9%

Besides fishing, some of the major industries in Greenland include gold, zinc, handicrafts, ruby mining, anorthosite, small shipyards, and hides and skins. The country is also considered to have several high-value minerals, as the recent surveys found potential of rich deposits.

Many economists believe it is this mineral-rich potential of Greenland which is behind the recent Trump claims of owning Greenland. Since Greenland has a literacy rate of 100%, finding the right human resources for any industry is not an issue.

Also, businesses expanding to Greenland can benefit from the country’s export relations with some of the top consumers in the global market. The country’s main partners for its export volume of USD 1.49 billion include the European Union (54%), China (23.8%), the United Kingdom (5.78%), and Japan (5.18%).

However, the challenge of infrastructure and logistics still persists due to the country’s harsh geographic conditions. Then, there are administrative hurdles. As a company expanding its services to Greenland, you’ll have to go through a maze of administrative and legal procedures.

Doing this yourself can be time-consuming and end up in mistakes that can potentially bring you legal troubles, loss of reputation, poor workforce management, and costly penalties. To avoid this, you can work with a professional employer organization (PEO) in the country. Below, we discuss how you can establish your business with the help of a PEO in Greenland.

What Is a PEO in Greenland?

A professional employer organization (PEO) is an entity that provides HR services to businesses. Typically, PEOs are used in foreign countries where businesses do not have experience in local HR laws.

Some of the services a PEO provides are hiring, payroll management, employee benefits, tax compliance, and legal compliance. There are two ways you go about working with a PEO:

  • PEO Services: In this approach, the PEO only handles the administrative tasks such as payroll and taxes. You will still be responsible for finding and hiring your own employees and managing them directly.
  • EOR: An employer of record (EOR) is similar to a PEO but also takes on the responsibility of hiring employees on your behalf. So, they act as the legal employer of your staff. They also provide PEO services such as payroll management and tax compliance.

If you go with the former approach, you’ll have to set up your business entity in Greenland yourself. The PEO will assist with HR while you do the rest.

However, in the latter, you can simply partner with an EOR and skip the process of setting up a foreign entity. They will handle pretty much everything minus the daily operations in your workplace, such as managing employees’ tasks and schedules.

Start hiring with an Greenland PEO

Let us handle the complexities of hiring, compliance, and payroll in Greenland while you focus on growing your team.

  • Hire employees in Greenland with a Greenland EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Greenland
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Why Do You Need a PEO in Greenland

There’s no denying that starting a business in a new country is a hectic task. Add in the complexities of HR laws and regulations, and it can quickly become overwhelming. A PEO can be just what you need to tackle these challenges. Here’s why working with a PEO in Greenland is a good choice.

Penetration Into the Local Market

Greenland is a unique market with its own set of laws and cultural norms. It’s also a lesser-known market, which can make it difficult for international companies to navigate.

A PEO, due to its local presence and expertise, can help you understand the market better. They can guide you through the process of setting up a business entity and understanding the labor laws. It gives you a head start in successfully penetrating the market.

You can also benefit from their knowledge of the local culture and customs, which can help you build relationships within the market, especially with potential partners and clients.

Compliance With Greenlandic Laws

Greenland has stringent labor laws which businesses, both local and foreign, must comply with. As an employer, you are expected to follow these laws, which cover areas such as working hours, minimum wage, employee benefits, and vacation policies.

It is imperative to comply with these laws if you want to avoid legal troubles or penalties. You also have to follow guidelines for work visas in the country. For example, foreigners who come to work in Greenland have to get work permits and healthcare permits.

A PEO informs you about these laws and regulations. They can also help you with the paperwork involved in getting necessary permits and visas. As a result, you can focus on building and growing your business in Greenland.

Handling of Employment Contracts

All employers recruiting staff in Greenland have to draft contracts that comply with the country’s labor laws. These contracts must specify the terms of employment, such as the working hours, compensation, benefits, and termination clauses.

A PEO can help you understand these laws and draft contracts that protect both you and your employees. They can also assist with negotiations and offer advice on fair employment practices in Greenland.

Setting Up a Payroll System

The primary task that a PEO performs is setting up a payroll system. Here’s what they do:

  • Payment Calculation: The PEO calculates employee salary, bonuses, and benefits based on the employment contracts. They also deduct taxes, social security contributions, and other mandatory fees required by law.
  • Payment Processing: The PEO makes sure that employees are paid accurately and on time. They handle all payment processing activities, such as issuing paychecks or transferring funds directly to employees’ bank accounts.
  • Tax Compliance: Since the PEP is up to date with the latest tax laws in Greenland, they keep your business compliant. They also handle all tax-related paperwork, such as filing taxes.
  • Benefits Administration: Along with salary, employers in Greenland also offer fringe benefits to employees. These can include retirement plans and other non-wage benefits. The PEO manages these benefits on your behalf and makes sure that they are in line with local laws.

What Are the Benefits of Working With a PEO in Greenland?

Let’s look at some benefits of having a PEO by your side as you take your business to Greenland.

Stress-Free Employee Management

Handling payroll and staying compliant with labor laws can be a headache. A PEO takes that off your plate, ensuring your employees get paid on time while handling tax filings and local labor regulations. No more worrying about miscalculations, late payments, or compliance slip-ups. They keep everything running smoothly, so you don’t have to.

Access to Better Employee Benefits

In a new country, you’re competing with local businesses that are already trusted more by the people and have had a long time to establish themselves. Attracting the right talent for your organization can be quite challenging in this landscape.

A PEO can help you offer better perks, like health insurance, retirement plans, unlimited PTO, and wellness programs. These benefits attract top talent and improve employee satisfaction and retention.

Since PEOs group multiple businesses together, they can negotiate better rates, giving your employees access to big-company benefits without the big-company costs.

More Time to Focus on Growth

Running a business in Greenland means wearing a lot of hats, but HR and admin work shouldn’t take up all your time. With a PEO handling payroll and HR, you can focus on growing your business and improving your services. This way, you stay competitive and compliant at the same time.

How Much Does It Cost to Work With a PEO in Greenland?

The cost of working with a PEO in Greenland really depends on a few factors, like the size of your team, the level of services you need, and how the PEO structures its pricing. Some charge a percentage of your total payroll, usually between 2% and 12%, which can be great for smaller businesses but might get pricey if you have high salaries.

Others go with a flat fee per employee, making costs more predictable. It all comes down to what works best for your business and how much support you need with things like payroll and compliance.

Apart from these pricing structures, some PEOs in Greenland also offer a flat-free pricing model. For example, they may charge a set-up fee, followed by a flat monthly fee, regardless of your employee count or payroll amount. For example, a PEO may charge you $500 for setup and $1500 per month, regardless of whether you have 5 employees or 50.

Their flat pricing includes certain services like payroll, HR support, and benefits administration. Additional or optional services may come at an extra cost.

How to Choose a PEO in Greenland?

When looking for a PEO in Greenland, here’s what to keep in mind.

1

Range of Services

The first thing you need to consider is the range of services offered by the PEO. Do they cover all your HR needs, or do you need to outsource some tasks elsewhere?

Some handle just payroll and compliance, while others offer full HR management, employee benefits, risk mitigation, and even training programs. Think about what’s most important for your business.

Do you need help with local labor laws? Better employee benefits? A smoother payroll system? Make a checklist of must-haves so you can compare PEOs and find the best fit.

2

Payroll Management Process

Every PEO has its own payroll management process. Ask about their methods and how they maintain accuracy. Do they use automated systems or handle everything manually? How do they handle tax filing and compliance?

Ideally, you want to work with a PEO that is in line with your process. For example, if you use a mix of online and paper-based systems, you may want a PEO that can accommodate both. Similarly, you may want to record all payments in both English and Greenlandic. The PEO should be able to do that without any issues.

3

Service Customization and Scalability

Not all businesses in Greenland have the same needs, so a one-size-fits-all PEO won’t cut it. Look for a provider that lets you customize services based on what your business actually requires. Maybe you only need payroll support now but want the option to add HR management or employee benefits down the road.

Similarly, scalability is an important aspect to look at. You will want to expand your team and business over the years, so you want to work with a PEO that can grow with you.

4

HR Management Technology

The right PEO should offer solid HR technology that makes managing your workforce easier, not more complicated. Look for providers that use modern tools like cloud-based HR platforms, which give you easy access to employee records, payroll data, and compliance documents from anywhere.

Many PEOs also offer self-service portals, where employees can check their pay stubs, request time off, and update personal details without constant back-and-forth emails.

Some even integrate applicant tracking systems (ATS) for streamlined hiring or learning management systems (LMS) for employee training. The best PEOs in Greenland will have user-friendly, secure, customizable, and mobile-friendly tech that saves you time and keeps everything organized in one place.

If you already use certain systems in your organization, you can ask the PEO if their systems can integrate with yours. However, this isn’t a requirement for every business.

Let a PEO in Greenland Manage Your HR

The tedious task of expanding your business to a new country is often made even more hectic and time-consuming when you realize that you need to set up HR and payroll processes for your new employees.

In a foreign country, you also have to comply with certain laws and get documents that you won’t need in your home country. It’s almost like starting from scratch.

In such an instance, a PEO can be your ally. However, working with one may be costly for some businesses, especially when you’re still navigating the local market.

We assist businesses in over 150 countries, so we have vast knowledge of PEOs in Greenland. Contact us to learn how we can help you.

Frequently Asked Questions

Many PEOs provide recruiting, hiring, and onboarding support, including job postings, background checks, and new hire paperwork. They make sure new employees are properly set up with payroll and benefits requirements from day one. Some PEOs also offer training programs and HR technology that make onboarding smoother and more efficient, helping new hires get up to speed faster.

PEOs are actually more popular with small and mid-sized businesses that need HR support but don't have the budget for an in-house HR team. With a PEO, smaller businesses can offer competitive benefits and stay compliant without the high costs of hiring HR specialists. However, that doesn't mean that large businesses can't benefit from working with a PEO.

A PEO negotiates benefits on behalf of multiple businesses, allowing them to secure lower rates for things like health insurance. So, even small businesses can offer benefits that are usually only available to large corporations. The PEO also manages enrollment, compliance, and claims processing to make benefits administration hassle-free.