Do I Need a Local Entity to Hire in Gambia?

In Gambia, a "local entity" refers to a recognized presence that allows you to act as an employer, usually through a subsidiary or branch office. This setup is essential for fulfilling local payroll and employment obligations, ensuring compliance with Gambian labor laws.

Without establishing a local entity, you generally can't register as an employer, manage payroll, or issue compliant employment contracts. An alternative is to engage an Employer of Record (EOR), which can handle these responsibilities on your behalf.

What is Required to Employ Someone in Gambia?

• Local employing entity required to directly employ? Yes (you must register with the Gambia Investment and Export Promotion Agency)
• Payroll registration required? Yes (mandatory registration with the Gambia Revenue Authority)
• Withholding/tax remittance required? Yes (employers must withhold income tax from salaries)
• Social contributions required? Yes (contributions to the Social Security and Housing Finance Corporation are mandatory)
• Local employment agreement required? Yes (written contracts are standard practice in Gambia)
• Mandatory benefits to budget? Yes (includes annual leave, sick leave, and maternity leave)
• Works council/collective agreements considerations? Usually (certain sectors may require adherence to collective agreements)

Best Options If You're Hiring in Gambia

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should proceed with caution. Hiring contractors in Gambia can be a viable option, but it’s essential to ensure that the relationship is genuinely independent.

While you don’t need a local entity to hire contractors, misclassification can lead to legal issues if the contractor is deemed to be functioning as an employee. Here are some key points to consider:

• The contractor should have autonomy over their work.
• They should not be integrated into your business operations.
• Ensure the contract clearly defines the scope and terms of work.

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

Typical entity setup timeline: It often takes 4–8 weeks to establish an entity in Gambia, depending on the registration processes involved.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 10,000–25,000 GMD per month ($200–$500)
• Payroll provider: Estimated 1,500–4,000 GMD per employee per month ($30–$80)
• Employer registrations and recurring compliance: Varies by complexity, typically around 5,000 GMD ($100) annually
• Corporate tax filings and annual reporting: Estimated 20,000–50,000 GMD per year ($400–$1,000)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per 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 Gambia

Hiring in Gambia 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 Gambia 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.