Do I Need a Local Entity to Hire in Cameroon?

In Cameroon, a "local entity" typically refers to a recognized presence that allows you to act as an employer—most commonly a subsidiary or branch office. This setup is essential for fulfilling local payroll and employment obligations, ensuring compliance with Cameroonian labor laws.

Without a local entity, you can't effectively manage payroll, register as an employer, or comply with mandatory employment protections. An EOR can serve as your local employer, taking on these responsibilities while you focus on your business.

What is Required to Employ Someone in Cameroon?

• Local employing entity required to directly employ? Yes (you need a local entity for direct employment)
• Payroll registration required? Yes (mandatory registration with the National Social Insurance Fund)
• Withholding/tax remittance required? Yes (employers must withhold income tax and remit to the tax authority)
• Social contributions required? Yes (employers are responsible for social security contributions)
• Local employment agreement required? Yes (written contracts are mandatory under Cameroonian law)
• Mandatory benefits to budget? Yes (statutory leave, health insurance, and retirement contributions)
• Works council/collective agreements considerations? Usually (applicable in certain sectors and for larger employers)

Best Options If You're Hiring in Cameroon

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it’s important to tread carefully. While hiring contractors allows you to bypass the need for a local entity, misclassification risks exist if the contractor's role resembles that of an employee.

In Cameroon, authorities scrutinize the nature of the working relationship. If the contractor is integrated into your business, it may lead to legal challenges. Here are key points to consider:

• Ensure the contractor has autonomy in how they complete their work.
• Avoid controlling their hours or providing tools and resources.
• Limit the contractor's role to specific projects rather than ongoing tasks.

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 Cameroon, depending on the type of entity and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 150,000–300,000 XAF per month ($250–$500)
• Payroll provider: Estimated 10,000–30,000 XAF per employee per month ($17–$50)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 500,000–1,000,000 XAF per year ($850–$1,700)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per 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 Cameroon

Hiring in Cameroon 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 Cameroon 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.