Do I Need a Local Entity to Hire in Mauritius?

In Mauritius, a "local entity" refers to a recognized business presence that can act as the employer, such as a subsidiary or branch office. This setup allows you (or a provider acting on your behalf) to be recognized locally as an employer, taking on payroll and employment obligations in the country.

Without a local entity, you generally cannot register as an employer, manage mandatory social security processes, run local payroll, or issue compliant employment terms. Fortunately, an Employer of Record (EOR) can help you navigate these requirements without the need for a local entity.

What is Required to Employ Someone in Mauritius?

• Local employing entity required to directly employ? Yes (you need to register with the Registrar of Companies)
• Payroll registration required? Yes (mandatory with the Mauritius Revenue Authority)
• Withholding/tax remittance required? Yes (employers must withhold income tax from salaries)
• Social contributions required? Yes (contributions to the National Pension Fund and National Savings Fund are mandatory)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (statutory leave, social security coverage, and other entitlements)
• Works council/collective agreements considerations? Usually (some sectors may have collective agreements in place)

Best Options If You're Hiring in Mauritius

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

While hiring contractors doesn’t require a local entity, Mauritius has strict labor laws, and misclassifying a contractor as an independent worker can lead to legal complications. Here are some key points to consider:

• Ensure the contractor operates independently and isn’t integrated into your business.
• Be mindful of the level of control you exert over their work.
• Consider the nature of the work and whether it resembles employment.

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 Mauritius, depending on the type of business and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated MUR 10,000–30,000 per month ($230–$690)
• Payroll provider: Estimated MUR 1,500–4,500 per employee per month ($35–$105)
• Employer registrations and recurring compliance: Estimated MUR 5,000–15,000 per year ($115–$345)
• Corporate tax filings and annual reporting: Estimated MUR 20,000–60,000 per year ($460–$1,380)

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 Mauritius

Hiring in Mauritius 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 Mauritius 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 managed 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.