Do I Need a Local Entity to Hire in French Guiana?

In French Guiana, a "local entity" refers to a recognized employing presence, such as a subsidiary or branch office, that allows you to fulfill local employment obligations. This setup is crucial for managing payroll, tax, and compliance with local labor laws.

Without a local entity, you can't effectively register as an employer, manage mandatory social security processes, or issue compliant employment contracts. An alternative is to use an Employer of Record (EOR), which can act as your local employer and handle these responsibilities on your behalf.

What is Required to Employ Someone in French Guiana?

• Local employing entity required to directly employ? Yes (you need a local entity to register as an employer)
• Payroll registration required? Yes (mandatory for all employers with employees)
• Withholding/tax remittance required? Yes (employers must withhold income tax and social contributions)
• Social contributions required? Yes (employers are responsible for social security contributions)
• Local employment agreement required? Yes (written contracts are mandatory under French labor law)
• Mandatory benefits to budget? Yes (statutory leave and social security coverage are required)
• Works council/collective agreements considerations? Often (collective agreements may apply depending on the sector)

Best Options If You're Hiring in French Guiana

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

Hiring contractors in French Guiana can be a viable option, but it’s essential to ensure that the relationship is genuinely independent. Misclassification can lead to legal issues if the contractor is deemed to be functioning like an employee.

• Ensure the contractor has multiple clients and isn’t exclusively working for you.
• Maintain a clear distinction in control over work hours and methods.
• Be aware that strong labor protections exist, and authorities may scrutinize contractor relationships closely.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 6–12 weeks to set up an entity in French Guiana, depending on the registrations required.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated €300–€800 per month ($350–$950)
• Payroll provider: Estimated €20–€60 per employee per month ($24–$70)
• Employer registrations and recurring compliance: Estimated €1,000–€2,500 per year ($1,200–$3,000)
• Corporate tax filings and annual reporting: Estimated €1,500–€4,000 per year ($1,800–$4,800)

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 contributions, typically around 30% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in French Guiana

Hiring in French Guiana 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 French Guiana 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.