Do I Need a Local Entity to Hire in Zimbabwe?

In Zimbabwe, a "local entity" typically refers to a registered business presence that can act as the employer, such as a subsidiary or branch office. This setup allows you to be recognized as an employer and fulfill local payroll and employment obligations.

Without establishing a local entity, you may face challenges in managing payroll, registering as an employer, and complying with mandatory employment protections. An Employer of Record (EOR) can serve as a viable alternative, allowing you to hire employees without the complexities of setting up a local entity.

What is Required to Employ Someone in Zimbabwe?

• Local employing entity required to directly employ? Yes (required for direct employment and compliance)
• Payroll registration required? Yes (must register with the Zimbabwe Revenue Authority)
• Withholding/tax remittance required? Yes (employers must withhold and remit taxes)
• Social contributions required? Yes (mandatory contributions to the National Social Security Authority)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (includes leave, social security, and other statutory entitlements)
• Works council/collective agreements considerations? Usually (certain sectors may have collective agreements)

Best Options If You're Hiring in Zimbabwe

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it’s essential to ensure that the contractor relationship is genuinely independent.

While hiring contractors can be a flexible option, Zimbabwe has strict labor laws that protect workers. Misclassification of contractors as employees can lead to legal issues. Ensure that:

• The contractor operates independently and is not integrated into your business.
• There is no control over their working hours or methods.
• The work is project-based and not ongoing or exclusive.

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 Zimbabwe, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 1,000–2,500 ZWL per month ($12–$30)
• Payroll provider: Estimated 300–800 ZWL per employee per month ($4–$10)
• Employer registrations and recurring compliance: Estimated 1,200–3,000 ZWL per year ($15–$37)
• Corporate tax filings and annual reporting: Estimated 5,000–15,000 ZWL per year ($60–$180)

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)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Zimbabwe

Hiring in Zimbabwe 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 Zimbabwe 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.