Do I Need a Local Entity to Hire in South Sudan?

In South Sudan, a "local entity" refers to a business presence recognized by the government, such as a subsidiary or branch office. This setup allows you to be recognized as an employer, enabling compliance with local payroll and employment obligations.

Without a local entity, you generally cannot manage payroll, register as an employer, or fulfill mandatory employment protections. An Employer of Record (EOR) can help you navigate these requirements without the need for a local entity.

What is Required to Employ Someone in South Sudan?

• Local employing entity required to directly employ? Yes (required for direct employment and payroll registration)
• Payroll registration required? Yes (must register with the Ministry of Labor)
• Withholding/tax remittance required? Yes (employers must withhold income tax)
• Social contributions required? Yes (mandatory contributions to the National Social Insurance Fund)
• Local employment agreement required? Yes (written contracts are necessary for compliance)
• Mandatory benefits to budget? Yes (statutory leave and social security coverage)
• Works council/collective agreements considerations? Usually (may apply depending on industry and size)

Best Options If You're Hiring in South Sudan

Can I Hire Contractors Instead of Setting Up an Entity?

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

Hiring contractors can be a viable option in South Sudan, but it’s essential to ensure that the contractor operates independently and isn’t misclassified as an employee. Misclassification can lead to legal issues, especially if the contractor is integrated into your business operations.

• Ensure the contractor has control over their work methods and schedule.
• Avoid providing tools or resources that suggest an employer-employee relationship.
• Keep the contractor's work project-based and limited in duration.

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 South Sudan, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 50,000–150,000 SSP per month ($85–$255)
• Payroll provider: Estimated 5,000–15,000 SSP per employee per month ($8–$25)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 200,000–600,000 SSP per year ($340–$1,020)

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 South Sudan

Hiring in South Sudan 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 South Sudan 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.