Do I Need a Local Entity to Hire in Togo?

In Togo, a "local entity" refers to a legally recognized presence, such as a subsidiary or branch, that allows you to act as an employer. This setup is essential for fulfilling local payroll and employment obligations, ensuring compliance with Togo's labor laws.

Without a local entity, you generally cannot manage payroll, withhold taxes, or issue compliant employment contracts. However, you can hire through an Employer of Record (EOR), which simplifies the process and allows you to bypass the complexities of local incorporation.

What is Required to Employ Someone in Togo?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (registration with the Direction Générale des Impôts)
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit to the tax authority)
• Social contributions required? Yes (mandatory contributions to the Caisse Nationale de Sécurité Sociale)
• Local employment agreement required? Yes (written contracts are mandatory under Togolese law)
• Mandatory benefits to budget? Yes (statutory leave, health insurance, and retirement contributions)
• Works council/collective agreements considerations? Usually (many sectors have collective agreements that influence employment terms)

Best Options If You're Hiring in Togo

Can I Hire Contractors Instead of Setting Up an Entity?

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

While hiring contractors allows you to bypass the need for a local entity, Togo has strict labor laws that protect workers. Misclassification can lead to legal issues if the contractor's role resembles that of an employee.

• Ensure the contractor operates independently and is not integrated into your business.
• Be wary if you control their work hours, location, or methods.
• Consider the nature of the work—core business functions may raise 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 Togo, depending on the necessary registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 50,000–150,000 XOF per month ($85–$255)
• Payroll provider: Estimated 10,000–30,000 XOF per employee per month ($17–$51)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 300,000–900,000 XOF per year ($510–$1,530)

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, mandatory benefits administration)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Togo

Hiring in Togo 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 Togo 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.