Do I Need a Local Entity to Hire in Haiti?

In Haiti, a "local entity" refers to a legally recognized presence that allows you to employ individuals directly, such as a subsidiary or branch office. This setup is crucial for managing payroll, tax obligations, and compliance with local labor laws. Without a local entity, you cannot fully meet the legal requirements for employment, including registering as an employer and managing payroll obligations.

Fortunately, if you prefer not to establish a local entity, you can consider using an Employer of Record (EOR). An EOR acts as the legal employer, allowing you to hire employees while ensuring compliance with local laws and regulations.

What is Required to Employ Someone in Haiti?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (must register with the Direction Générale des Impôts)
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit to the tax authority)
• Social contributions required? Yes (mandatory contributions to the Office d'Assurance Vieillesse)
• Local employment agreement required? Yes (written contracts are standard and legally required)
• Mandatory benefits to budget? Yes (statutory benefits include health insurance and paid leave)
• Works council/collective agreements considerations? Usually (certain sectors may have collective agreements)

Best Options If You're Hiring in Haiti

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 hiring contractors in Haiti allows you to bypass the need for a local entity, be cautious of misclassification risks. Haitian labor laws protect workers, and if a contractor is deemed to be functioning as an employee, you could face legal challenges. To mitigate risks, consider the following:

• Ensure the contractor has multiple clients and isn’t solely dependent on your business.
• Maintain minimal control over how they perform their work.
• Clearly define the scope of work in the contract to avoid any ambiguity.

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

Typical entity setup timeline: It often takes 6–12 weeks to establish an entity in Haiti, depending on registration and legal requirements.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 10,000–25,000 HTG per month ($100–$250)
• Payroll provider: Estimated 1,500–3,500 HTG per employee per month ($15–$35)
• Employer registrations and recurring compliance: Estimated 5,000–15,000 HTG per year ($50–$150)
• Corporate tax filings and annual reporting: Estimated 20,000–50,000 HTG per year ($200–$500)

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 Haiti

Hiring in Haiti 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 Haiti 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 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.