Do I Need a Local Entity to Hire in Burkina Faso?

In Burkina Faso, a "local entity" refers to a recognized employing presence, such as a subsidiary or branch office, that can legally act as an employer. This setup is essential for managing payroll, social security, and other employment obligations in the country.

Without establishing a local entity, foreign companies typically cannot register as employers, manage local payroll, or comply with mandatory employment protections. An alternative is to use an Employer of Record (EOR), which can handle these responsibilities on your behalf.

What is Required to Employ Someone in Burkina Faso?

• Local employing entity required to directly employ? Yes (a local entity is necessary for direct employment)
• Payroll registration required? Yes (you must register 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 required under local labor law)
• Mandatory benefits to budget? Yes (includes annual leave, sick leave, and social security)
• Works council/collective agreements considerations? Often (many sectors have collective agreements that may apply)

Best Options If You're Hiring in Burkina Faso

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but be cautious about misclassification risks.

While hiring contractors in Burkina Faso doesn’t require a local entity, it’s essential to ensure that the contractor operates independently. Misclassification can lead to legal issues if the contractor is deemed to be functioning as an employee.

• Ensure the contractor has multiple clients to establish independence.
• Avoid controlling their work hours or methods.
• Be mindful of the nature of the work; core business functions may raise scrutiny.

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 Burkina Faso, depending on the registrations required.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 150,000–300,000 XOF per month ($250–$500)
• Payroll provider: Estimated 20,000–50,000 XOF per employee per month ($35–$85)
• Employer registrations and recurring compliance: Estimated 100,000–200,000 XOF per year ($170–$340)
• Corporate tax filings and annual reporting: Estimated 200,000–500,000 XOF per year ($340–$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, typically around 16% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Burkina Faso

Hiring in Burkina Faso 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 Burkina Faso 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.