Do I Need a Local Entity to Hire in Burundi?

In Burundi, a "local entity" refers to a recognized employing presence, such as a subsidiary or branch office, that allows you to fulfill local payroll and employment obligations. Essentially, it’s the setup that enables you (or a provider acting on your behalf) to be recognized as an employer and manage compliance with local laws.

Without a local employing setup, you generally cannot register as an employer, manage mandatory social security processes, run local payroll with required withholdings, or issue compliant employment terms. The Burundian Social Security Office outlines employer responsibilities for contributions, which are crucial for compliance.

What is Required to Employ Someone in Burundi?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (mandatory for employer registration)
• Withholding/tax remittance required? Yes (employers must withhold taxes from salaries)
• Social contributions required? Yes (employers must pay social security contributions)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (statutory benefits include leave and social security)
• Works council/collective agreements considerations? Usually (some sectors may have collective agreements)

Best Options If You're Hiring in Burundi

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

While hiring contractors in Burundi doesn’t require a local entity, it’s essential to ensure that the contractor operates independently. Misclassification can lead to legal issues if the contractor is deemed to be functioning as an employee. Here are some points to consider:

• Ensure the contractor has multiple clients to demonstrate independence.
• Limit control over how they perform their work to avoid employee-like oversight.
• Be aware that Burundian labor laws provide strong protections for workers, and misclassification can expose you to penalties.

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 Burundi, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 200,000–500,000 BIF per month ($100–$250)
• Payroll provider: Estimated 15,000–50,000 BIF per employee per month ($7–$25)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 1,500,000–4,500,000 BIF per year ($750–$2,250)

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)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Burundi

Hiring in Burundi 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 Burundi quickly without establishing a local entity, eliminating incorporation costs and ongoing administration.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s managed 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.