Do I Need a Local Entity to Hire in Mauritania?

In Mauritania, a "local entity" refers to a recognized business presence, such as a subsidiary or branch office, that can legally employ staff. This setup is essential for managing local payroll, tax obligations, and compliance with Mauritanian labor laws.

Without a local entity, foreign companies typically cannot register as employers, manage mandatory social security contributions, or issue compliant employment contracts. However, using an Employer of Record (EOR) allows you to hire employees without the need for a local entity, simplifying the process significantly.

What is Required to Employ Someone in Mauritania?

• Local employing entity required to directly employ? Usually 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 for employees)
• Social contributions required? Yes (mandatory contributions to the Caisse Nationale de Sécurité Sociale)
• Local employment agreement required? Yes (written contracts are mandatory under Mauritanian law)
• Mandatory benefits to budget? Yes (statutory leave, health insurance, and other entitlements)
• Works council/collective agreements considerations? Often (certain sectors may be subject to collective agreements)

Best Options If You're Hiring in Mauritania

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but be cautious about misclassification risks.

Hiring contractors in Mauritania can be a viable option, but it’s essential to ensure that the contractor operates independently and is not treated like an employee. Misclassification can lead to legal issues, especially if the contractor is integrated into your business operations.

• Ensure the contractor has multiple clients to demonstrate independence.
• Avoid controlling the contractor's work hours or methods.
• Keep the contractor's role project-based and not core to your business.

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

Typical entity setup timeline: It often takes 2–4 months to set up an entity in Mauritania, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 50,000–100,000 MRU per month ($130–$260)
• Payroll provider: Estimated 10,000–20,000 MRU per employee per month ($26–$52)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 200,000–500,000 MRU per year ($520–$1,300)

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 Mauritania

Hiring in Mauritania 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 Mauritania 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.