Employer of Record vs Local Entity: Which Is Right for Hiring in Africa?
You want to hire someone in Kenya. Or Nigeria. Or South Africa. You do not want to spend 6 to 12 months setting up a local entity to do it. This is exactly the problem that Employer of Record (EOR) services solve.
You want to hire someone in Kenya. Or Nigeria. Or South Africa. You do not want to spend 6 to 12 months setting up a local entity to do it. This is exactly the problem that Employer of Record (EOR) services solve.
What is Employer of Record?
An EOR is a company that legally employs your staff in a country where you have no entity. The EOR handles the employment contract, payroll, statutory deductions, and government remittances. You direct the employee's work. The EOR handles the compliance.
When EOR Makes Sense
- You need to hire quickly and cannot wait for entity setup
- You are testing a market before committing to a local company
- You have raised investment and need to formalize contractor relationships immediately
- You have a small number of hires (1 to 5) and a full entity is disproportionate
When a Local Entity Makes More Sense
- You are hiring 10+ people in a country
- You plan long-term operations with local clients
- You need to bid for government contracts
- You need to hold assets or IP in that jurisdiction
DBC's EOR Coverage
DBC provides EOR services in Kenya, South Africa, Namibia, and Nigeria through our African network. Monthly fee from USD 320 per employee. Setup fee of USD 500 per country for the first employee. WhatsApp us at +971 52 277 4830 to discuss your hiring plans.
Need tailored guidance?
Book a discovery call and discuss your specific UAE expansion questions with DBC.