Do I Need a Local Entity to Hire in Seychelles?

In Seychelles, a "local entity" refers to a recognized business presence, such as a subsidiary or branch office, that allows you to act as an employer. This setup is essential for managing payroll and complying with local employment laws.

Without a local entity, foreign companies can't register as employers, manage payroll, or fulfill mandatory social security obligations. However, using an Employer of Record (EOR) can simplify the hiring process by allowing you to employ staff without the need for a local entity.

What is Required to Employ Someone in Seychelles?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (registration with the Seychelles Revenue Commission is necessary)
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit it to the Seychelles Revenue Commission)
• Social contributions required? Yes (mandatory contributions to the Seychelles Social Security Fund)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (statutory benefits include paid leave and social security)
• Works council/collective agreements considerations? Usually no (not common in Seychelles)

Best Options If You're Hiring in Seychelles

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

While hiring contractors in Seychelles doesn't require a local entity, it's crucial to ensure that the contractor operates independently to avoid potential legal issues. Misclassification can lead to penalties if the contractor is deemed to be functioning like an employee.

Consider these factors when hiring contractors:

• Ensure the contractor has multiple clients and is not solely dependent on your business.
• Maintain minimal control over how the work is performed.
• Clearly define the scope of work and payment terms in the contract.

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 Seychelles, depending on the type of business and necessary registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 5,000–15,000 SCR per month ($370–$1,110)
• Payroll provider: Estimated 500–1,500 SCR per employee per month ($37–$111)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 10,000–30,000 SCR per year ($740–$2,220)

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 Seychelles

Hiring in Seychelles 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 Seychelles 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.