Employer of record or your own company in Africa: how to choose
An employer of record lets you hire in an African country without setting up a company there, which suits small teams and testing a market. Your own company gives more control and suits larger, long-term operations. This guide compares cost, control, tax presence and set-up work, so you can choose for each country.
Delivered by SLONEC Advisory Group (UK); SLONEC Group Africa, with SLONEC Accountancy, SLONEC Consultancy and SLONEC Recruitment and Training (Sierra Leone).
When an employer of record fits
- One to a handful of staff, or a new market you are testing.
- Project teams for a fixed contract.
- You need staff working before you decide on a company.
When your own company fits
- A large or permanent team, or you need to sign local contracts, hold assets or invoice locally.
- You need local permits or registrations in your own name.
Cost
An employer of record charges a monthly fee per employee plus employment costs. Across Africa, our fee is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus employment costs at cost. A company has set-up, accounting, tax filing and office costs.
Tax presence
Using an employer of record does not by itself prevent a permanent establishment. What your business does in the country decides whether it has a taxable presence, for example, where your own staff habitually conclude contracts there.
Switching later
Many clients start with an employer of record and move staff to their own company later. We can help with both, including company registration in Sierra Leone.
Frequently asked questions
Is an employer of record cheaper than a company?
For small teams it often is; for large teams a company can cost less per head.
Does an employer of record remove permanent establishment risk?
No. It does not by itself prevent a permanent establishment.
Can I switch from EOR to my own company?
Yes. We can help move staff when you are ready.
How much is your EOR fee?
Across Africa, US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus employment costs at cost.
Can you set up a company for us?
In Sierra Leone, yes; elsewhere we coordinate through local implementing partners.
Which takes less time?
It depends on the country; we don’t promise timelines.