Do I Need a Local Entity to Hire in St Kitts and Nevis?

In St Kitts and Nevis, a "local entity" refers to a recognized business presence, such as a subsidiary or branch office, that can legally hire employees and manage payroll obligations. This setup allows your company to comply with local labor laws and tax regulations, ensuring you can operate effectively in the market.

Without a local entity, you generally can't manage payroll, register as an employer, or fulfill local employment obligations. However, you can consider using an Employer of Record (EOR) as an alternative, which allows you to hire employees without the complexities of establishing a local entity.

What is Required to Employ Someone in St Kitts and Nevis?

• Local employing entity required to directly employ? Yes (a local entity is needed for direct employment)
• Payroll registration required? Yes (you must register with the St Kitts and Nevis Inland Revenue Department)
• Withholding/tax remittance required? Yes (employers must withhold and remit taxes to the Inland Revenue Department)
• Social contributions required? Yes (mandatory contributions to the Social Security Board are required)
• Local employment agreement required? Yes (employment contracts must comply with local labor laws)
• Mandatory benefits to budget? Yes (statutory benefits include vacation leave and sick leave)
• Works council/collective agreements considerations? Usually (some sectors may have collective agreements that apply)

Best Options If You're Hiring in St Kitts and Nevis

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

Hiring contractors in St Kitts and Nevis can be a viable option, but it’s essential to ensure that the nature of the work does not resemble an employer-employee relationship. Misclassification can lead to legal issues, so make sure contractors operate independently and are not integrated into your business operations.

• Ensure contractors have multiple clients and control over their work.
• Be wary if you dictate their hours, tools, or methods.
• Consider the nature of the work and its alignment with your core business activities.

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

Typical entity setup timeline: It often takes 4–6 weeks to set up an entity in St Kitts and Nevis, depending on the type of entity and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 1,500–3,000 XCD per month ($555–$1,110)
• Payroll provider: Estimated 300–600 XCD per employee per month ($111–$222)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 2,000–5,000 XCD per year ($740–$1,850)

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 St Kitts and Nevis

Hiring in St Kitts and Nevis 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 St Kitts and Nevis 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.