Do I Need a Local Entity to Hire in Trinidad & Tobago?

In Trinidad & Tobago, 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 cannot register as an employer, manage mandatory payroll processes, or issue compliant employment contracts. However, using an Employer of Record (EOR) can simplify the hiring process by allowing you to employ staff without the need for local registration.

What is Required to Employ Someone in Trinidad & Tobago?

• Local employing entity required to directly employ? Yes (you must register with the Companies Registry)
• Payroll registration required? Yes (mandatory registration with the Board of Inland Revenue)
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit to the BIR)
• Social contributions required? Yes (contributions to the National Insurance Board are mandatory)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (statutory leave, health benefits, and pension contributions)
• Works council/collective agreements considerations? Usually (depending on the sector and employee count)

Best Options If You're Hiring in Trinidad & Tobago

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about how the relationship is structured.

While hiring contractors allows you to bypass the need for a local entity, Trinidad & Tobago has strict regulations regarding worker classification. Misclassification can lead to legal issues if the contractor is deemed to be functioning as an employee.

Consider these points when hiring contractors:

• Ensure the contractor operates independently and is not integrated into your business.
• Avoid controlling their work hours or methods, as this can imply an employer-employee relationship.

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 Trinidad & Tobago, depending on the type of business and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated TTD 2,500–5,000 per month (approximately $370–$740)
• Payroll provider: Estimated TTD 400–1,200 per employee per month (approximately $60–$180)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated TTD 10,000–20,000 per year (approximately $1,480–$2,960)

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 Trinidad & Tobago

Hiring in Trinidad & Tobago 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 Trinidad & Tobago 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.