Do I Need a Local Entity to Hire in Myanmar?

In Myanmar, a "local entity" refers to a recognized business presence that can act as the employer, such as a subsidiary or branch office. This setup allows you (or a provider acting on your behalf) to be recognized locally as an employer and manage payroll and employment obligations according to Myanmar's laws.

Without a local employing setup, it's generally not possible to register as an employer, manage mandatory tax processes, run local payroll, or issue compliant employment terms. Myanmar's Ministry of Labour, Immigration and Population outlines employer responsibilities for paying contributions and adhering to local employment laws, which are crucial for being compliant.

What is Required to Employ Someone in Myanmar?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (employer registration with the Internal Revenue Department)
• Withholding/tax remittance required? Yes (mandatory tax withholding applies to employment)
• Social contributions required? Yes (employer must pay contributions to the Social Security Board)
• Local employment agreement required? Yes (written contracts are standard practice in Myanmar)
• Mandatory benefits to budget? Yes (statutory leave, social security coverage, and other mandatory entitlements)
• Works council/collective agreements considerations? Usually (many sectors are influenced by applicable collective agreements)

Best Options If You're Hiring in Myanmar

Can I Hire Contractors Instead of Setting Up an Entity?

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

While hiring contractors allows you to bypass the need for a local entity, Myanmar has strict regulations regarding worker classification. If the contractor is effectively working like an employee, you could face legal risks.

• Ensure the contractor operates independently and is not integrated into your business.
• Be wary if the work is exclusive or if you control how the work is done.
• Consider the contractor's role—if it's core to your business, misclassification risks increase.

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 Myanmar, depending on the registrations required.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 300,000–800,000 MMK per month ($150–$400)
• Payroll provider: Estimated 50,000–150,000 MMK per employee per month ($25–$75)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 1,000,000–3,000,000 MMK per year ($500–$1,500)

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 Myanmar

Hiring in Myanmar 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 Myanmar 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.