Do I Need a Local Entity to Hire in Antigua and Barbuda?

In Antigua and Barbuda, a "local entity" typically refers to a recognized business presence that can act as the employer, such as a subsidiary or branch office. This setup allows you (or a provider acting on your behalf) to be recognized locally as an employer and fulfill the country's payroll and employment obligations.

Without a local employing setup, it’s usually not possible to do all of the following compliantly: register as an employer, manage mandatory Social Security processes, run local payroll with the required withholdings, and issue compliant employment terms while administering mandatory protections. The Antigua and Barbuda Social Security Board outlines employer responsibilities for contributions, which is a core part of being an employer in the country.

What is Required to Employ Someone in Antigua and Barbuda?

• Local employing entity required to directly employ? Yes (you must register with the Companies Registry).
• Payroll registration required? Yes (mandatory registration with the Inland Revenue Department).
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit it to the government).
• Social contributions required? Yes (employers must contribute to the Social Security Fund).
• Local employment agreement required? Yes (written contracts are required under local labor laws).
• Mandatory benefits to budget? Yes (includes vacation pay, sick leave, and other statutory benefits).
• Works council/collective agreements considerations? Usually (some sectors may have collective agreements that apply).

Best Options If You're Hiring in Antigua and Barbuda

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it’s essential to ensure that the contractor relationship is genuinely independent.

While you can hire contractors without establishing a local entity, misclassification risks exist if the relationship resembles employment. In Antigua and Barbuda, labor laws protect workers, and misclassifying a contractor as an independent worker can lead to legal issues.

• Ensure the contractor has control over how they perform their work.
• Maintain clear contracts that outline the nature of the work.
• Be cautious if the contractor works exclusively for your company.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in Antigua and Barbuda, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 1,500–4,000 XCD per month ($555–$1,480)
• Payroll provider: Estimated 300–800 XCD per employee per month ($111–$296)
• Employer registrations and recurring compliance: Varies by complexity.
• Corporate tax filings and annual reporting: Estimated 2,000–5,000 XCD per year ($740–$1,850)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, mandatory benefits administration).
• Any optional benefits you choose to provide beyond statutory minimums.

How an Employer of Record Can Help You Hire in Antigua and Barbuda

Hiring in Antigua and Barbuda can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Antigua and Barbuda quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.