Do I Need a Local Entity to Hire in Guadeloupe?

In Guadeloupe, a "local entity" typically refers to a business structure like a subsidiary or branch office that allows you to be recognized as an employer. This setup is crucial for managing payroll and fulfilling local employment obligations. Without a local entity, you can't effectively handle payroll, social security contributions, or comply with local labor laws.

For many companies, establishing a local entity can be a lengthy and costly process. An alternative is to use an Employer of Record (EOR), which allows you to hire employees without the administrative burden of setting up a local entity.

What is Required to Employ Someone in Guadeloupe?

• Local employing entity required to directly employ? Usually yes (unless using an EOR)
• Payroll registration required? Yes (employer registration with the URSSAF)
• Withholding/tax remittance required? Yes (mandatory payroll withholdings apply)
• Social contributions required? Yes (employer must contribute to social security)
• Local employment agreement required? Yes (written contracts are mandatory)
• Mandatory benefits to budget? Yes (includes paid leave and health coverage)
• Works council/collective agreements considerations? Often (many sectors are governed by collective agreements)

Best Options If You're Hiring in Guadeloupe

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it comes with risks regarding misclassification.

Hiring contractors in Guadeloupe allows you to bypass the need for a local entity, but you must ensure that the contractor operates independently. Misclassification can lead to legal issues if the contractor's role resembles that of an employee.

• Ensure the contractor has multiple clients and is not exclusively working for you.
• Limit control over how the work is performed to maintain independence.
• Be cautious if the contractor's role is essential to your business operations.

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 Guadeloupe, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated €300–€800 per month ($350–$940)
• Payroll provider: Estimated €20–€60 per employee per month ($23–$70)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated €1,500–€4,000 per year ($1,760–$4,680)

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, 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 Guadeloupe

Hiring in Guadeloupe 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 Guadeloupe 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.