Do I Need a Local Entity to Hire in Sudan?

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

Without a local entity, you generally can't register as an employer, manage payroll, or comply with mandatory employment protections. However, using an Employer of Record (EOR) can simplify the process, allowing you to hire employees without the complexities of establishing a local entity.

What is Required to Employ Someone in Sudan?

• Local employing entity required to directly employ? Yes (a local entity is needed for direct employment)
• Payroll registration required? Yes (must register with the Ministry of Finance)
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit to the tax authority)
• Social contributions required? Yes (mandatory contributions to the Social Insurance Fund)
• Local employment agreement required? Yes (written contracts are mandatory under Sudanese labor law)
• Mandatory benefits to budget? Yes (includes social security, annual leave, and sick leave)
• Works council/collective agreements considerations? Usually (collective agreements may apply in certain sectors)

Best Options If You're Hiring in 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 in Sudan can be a viable option, but it's essential to ensure that the contractor operates independently. Misclassification risks arise if the contractor's work resembles that of an employee, which could lead to legal complications.

• Ensure the contractor has multiple clients to demonstrate independence.
• Avoid controlling their work hours or methods to maintain their status as independent.
• Be mindful of the contractor's integration into your business to reduce misclassification risks.

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 Sudan, depending on required registrations and approvals.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 15,000–30,000 SDG per month ($30–$60)
• Payroll provider: Estimated 1,000–3,000 SDG per employee per month ($2–$6)
• Employer registrations and recurring compliance: Estimated 5,000–10,000 SDG per year ($10–$20)
• Corporate tax filings and annual reporting: Estimated 20,000–40,000 SDG per year ($40–$80)

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 Sudan

Hiring in 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 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 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.