Do I Need a Local Entity to Hire in Comoros?

In Comoros, a "local entity" means having a recognized presence that can act as an employer, typically a subsidiary or branch office. This setup allows your company to be recognized locally for payroll and employment obligations, ensuring compliance with local laws.

Without a local entity, you generally cannot manage payroll, register as an employer, or fulfill mandatory employment obligations. However, using an Employer of Record (EOR) can simplify the hiring process while ensuring compliance with local regulations.

What is Required to Employ Someone in Comoros?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (must register with the Ministry of Finance)
• Withholding/tax remittance required? Yes (employers must withhold income tax for employees)
• Social contributions required? Yes (mandatory contributions to the National Social Security Fund)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (includes paid leave and health insurance)
• Works council/collective agreements considerations? Usually (depending on the sector, collective agreements may apply)

Best Options If You're Hiring in Comoros

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about the nature of the work relationship.

While hiring contractors can be a flexible option, it's essential to ensure that the contractor is genuinely independent. Misclassification risks exist if the contractor works closely with your team or under your direction. In Comoros, labor laws favor employee protections, so ensure that the contractor's role is clearly defined and independent.

• Ensure the contractor has multiple clients.
• Limit control over how the work is performed.
• Keep the contractor's work scope project-based rather than ongoing.

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 Comoros, depending on the required registrations and approvals.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 50,000–150,000 KMF per month ($110–$330)
• Payroll provider: Estimated 10,000–30,000 KMF per employee per month ($22–$66)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 300,000–900,000 KMF per year ($660–$1,980)

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 Comoros

Hiring in Comoros 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 Comoros 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.