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Employer Of Record In Equatorial Guinea

Employer Of Record In Equatorial Guinea

Skuad’s EOR Equatorial Guinea (Employer of Record Equatorial Guinea) helps your business expand into Equatorial Guinea without the need to set up an entity. Skuad's unified and automated global HR platform enables you to hire employees in Equatorial Guinea, explore business opportunities in Equatorial Guinea, and manage your payroll, benefits, etc. adhering to the local laws. Learn more on how Skuad streamlines the global expansion process for you.

Equatorial Guinea At A Glance

Equatorial Guinea is a Central African country that shares its border with Cameroon and Gabon and comprises the Rio Muni mainland and 5 volcanic offshore islands.

Population: 1.45 Million

Currency: Central African CFA franc (XAF)

Capital city: Malabo

Official Languages: Spanish(National Language), French, and Portuguese

GDP (PPP): $28.970 billion

Employment In Equatorial Guinea

What You Must Know Before Employing In Equatorial Guinea
Equatorial Guinea Employment Laws apply to both foreign nationals and their citizens. However, there are some differences in their entitlements. Therefore to minimize the challenges that may arise for companies looking to set up a local office, it is advisable to partner with a local payroll provider who is well aware of the Equatorial Guinea laws for both local and foreign workers.

Entitlements Explanation
Statutory Work Hours

Day Shift: Maximum 8 hours/day and 48 hours/week.

Mixed shift: 6 hours/day and 36 hours/week. Give or take a few hours for professions that have fluctuating work hours by nature like managerial positions and hospitality.

Employees under 18 years of age: Only day shift with maximum 6 hours/day.

Overtime eligibility Not more than 2 hours/day and 200 hours/year. 125% or more of basic pay
Paid Public Holidays
Date Holiday
1 January New Year’s Day
2 April Good Friday
1 May Labour Day
3 June Corpus Christi
5 June President's Day
3 August Freedom Day
15 August Constitution Day
16 August Constitution Day Holiday
12 October Independence Day
8 December Immaculate Conception
25 December Christmas Day
Paid Holidays Employment Contracts of Equatorial Guinea states that the employees receive at least 30 days of paid annual leave, of which 15 days of leave can be taken in consecution. There might be slight fluctuations from this act which should be mentioned in the Employee Contract Agreement while hiring in Equatorial Guinea.
Medical leave Employees get up to 26 weeks of paid (50% of the salary) leave if the employer had enrolled for social security in the previous year.
Maternity Leave Female employees receive fully-paid maternity leave of 12 weeks, 6 weeks pre-delivery, and the rest, post-delivery. They are entitled to additional paid leaves in case of medical complications. Social security Equatorial Guinea funds the maternity benefits of female employees.
Leave Expiry The remainder of paid leaves of an employee in Equatorial Guinea after the financial year closing are carried forward and must be claimed within the next 15 months after which it will expire.
Employee Protection and Anti-discrimination Rights Equatorial Guinea Employment Law 2021 includes discrimination protection which prevents employees from getting rejected or terminated or face any kind of negligence based on race, sex, religion, color, or social origin.
Confidentiality of Personal Information Personal Data Processing is restricted under the Data Protection Law Equatorial Guinea. Personal data cannot be processed without the subject’s consent. This section of the law can be waived in circumstances like legal obligations and contracts.

Contractors Vs. Full-Time Employees

The method of employment in Equatorial Guinea, like the rest of the world, depends upon the quality and category of employees. Following is a table that can help employers deciding upon whether to hire a freelancer or a permanent employee for their business in Equatorial Guinea.

But you do not need to care about any of these legal complications if you work with an Employer Of Record in Equatorial Guinea. Skuad is a leading EOR provider that would handle all the HR how-to’s and paperwork in compliance with Equatorial Guinea Labour Laws so that you can concentrate on generating business leads and expansion. 

Criteria Contractor Full-Time Employee
Flexibility Ideal for short-term projects. Pay once and get the job done. Ideal for long-term and/or multiple projects. Recurring payments even when there is not much work.
Experience Have accumulated work experience from different companies and sectors, hence, bring a lot to the table. Might have experience but the diversity may be limited to a single sector or company.
Cost The pay might be higher, but the company does not have to fund its taxes and benefits. While the salary might be less, the benefits are high and might be costlier in the long run.
Independence Usually save management time and effort as they are accustomed to working independently, with minimum or no use of company resources. Generally consume company resources to provide work output. Need to be managed in most cases.
Knowledge While a contractor is a Jack of All Trades, sometimes deep knowledge of a specific sector or company is required where this skill might become redundant. While the contractors have more diversified experience, the knowledge and expertise of a full-time employee benefit the company in the long run.
Loyalty Contractors have been seen as selfish workhorses that do their work and do not care about the company or the results, since they would be under some other contract after the project ends. More loyal to the company and work keeping in mind the consequences and results. Generally have the ‘benefit of the company is the benefit of the worker’ mindset.
Legal Clarity One of the main reasons why hiring companies in Equatorial Guinea think twice about hiring a contractor in Equatorial Guinea, or any foreign country is the fines and legal discrepancies that the business might face. Simply put, Full-Time employees are a safe bet. You are in the risk-free zone and would most likely not face any penalties for hiring Full-Time employees in Equatorial Guinea. Also, in the long run, the full-time employees prove more valuable to the company.

Click here to book a demo with Skuad.

Hiring in Equatorial Guinea

For arranging a meeting to hire employees in Equatorial Guinea, you need to send a letter to the concerned party outlining your company's background, its history, and a request for a meeting, as well as details of what you’ll cover. A minimum of two copies of the contract is required, and both copies need to be signed or sealed by both the employer and the employee. The employment contract must include:

  • Name and address of the employee and employer
  • Position and place of work
  • Employment contract period
  • Work duration and breaks
  • Employees’ duty
  • Compensation
  • Insurance is provided by the employer.

Probation & Termination

Probation Period

The probation period of an employee in Equatorial Guinea can last up to 90 days.  During this time, either the employee or employer can cancel the employment agreement by giving a 3 days’ notice.

Termination Of Service

Topic Explanation
Notice Period At least three months in advance
Reasons for Termination Article 83 of Employment Law Equatorial Guinea allows companies to terminate a contract due to valid reasons (Proof needs to be shown to the Authorities and employees affected). Possible reasons for termination are as follows:
  • End of contract
  • Downsizing
  • Economic instability issues
  • Technological concerns
  • Structural reforms
This measure is taken only as the worst-case scenario. Ex-employees are given preference in re-hiring.
Severance Pay
Years Of Service Pay (x=45)
1 x days of salary
2 2x days of salary
3 3x days of salary
N Nx days of salary

EOR Solution In Equatorial Guinea

Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Equatorial Guinea, you can fast-track the expansion process. Employer of Record Equatorial Guinea (EOR) solutions by Skuad can make expansion to Equatorial Guinea much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Equatorial Guinea. Book a demo with Skuad today.

General Employer Of Record Service Terms

Required Details and Documents

For Equatoguinean: Personal information, Copy of passport, Bank details, Copy of Permanent Residency proof, Job description.

For Expatriates: Personal information, Job description, Educational qualifications, Technical qualifications, CV, Copy of passport, Copy of ID, Bank details, Photographs, Police verification, Medical exam results.

Types of Visas In Equatorial Guinea

Type Explanation
Tourist Visa Applicants visiting Equatorial Guinea for sightseeing or meeting family and friends.

Processing time - 8-9 days

Validity - 30 days

Entry- Single/Multiple

Fee - USD 150-180

Business Visa Visiting Guinea for business meetings or conferences or other commercial activities. Letter of invitation endorsed by the Ministry of Security Equatorial Guinea is a must.

Processing time - 8-9 days

Validity - 30 days

Entry- Single/Multiple

Fee - USD 150-180

Visa On Arrival If the applicant does not have a Diplomatic Mission in their country, they can apply for Visa-On-Arrival. A letter of invitation endorsed by the Ministry of Security of Equatorial Guinea is a must.
Multiple Entry Work Visa Foreign Nationals can enter and exit Equatorial Guinea multiple times. Multiple Entry visa is valid for up to 1 year, but with a restriction of a maximum of 90 days of stay at a time.

Work Permit

Skuad’s local partner in Equatorial Guinea can sponsor foreign workers for Equatorial Guinea work visa permits. As an EOR in Equatorial Guinea, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage their employees’ daily activities and operations anytime remotely.

Work Permits Explanation
Can Skuad Sponsor Work Permit in Equatorial Guinea Yes
Processing Time 2 weeks
Types Of Work Permits In Equatorial Guinea
BI Initial Work Permit, which allows employees to work with any employer. Valid up to a year and can be renewed.
BR A BI work permit after the renewal is termed a BR work permit which is valid for two years. This is also renewable.
C An applicant receives a C work permit after renewing the BR work permit and is valid for three years.
A Typically for temporary or contractual employees. Valid for 6 months. Also Renewable.
I For self-employed workers, or those in the informal sector, which are not termed under contractual workers. Valid up to a year and is renewable.
PCP For self-employed personnel or workers employed in the agricultural field. It is renewable and valid for three years.
PTA For self-employed personnel or workers employed in the agricultural field. It is renewable and valid for three years.
PP A permanent Work Permit in Equatorial Guinea is granted to foreigners which meet certain conditions.
Work Permit Process

Step 1: Skuad’s local partner in Equatorial Guinea applies for the Employment Pass.

Step 2: Ministry of Manpower gives an in-principle approval (IPA) letter. Step 3: The worker enters Equatorial Guinea with the IPA letter.

Step 4: The worker is provided with a letter that permits them to start work and travel in Equatorial Guinea.

Step 5: The employee submits his biometrics at the Employment Pass Services Centre.

Step 6: The employee gets his pass card.

Passport Submission The employee's original passport is presented during their appointment with the Ministry of Manpower.
Work Permit Validity The Employment Pass is valid for 1 year. The employee can get it renewed after 1 year
Work Permit Process for Different Countries For most countries, the process to obtain a work permit is the same. However, there are exceptions for citizens of some countries like China.
Change of Sponsor Within Equatorial Guinea The employee needs to submit a new application for a change of sponsor
Where Is The Application Processed? In either Equatorial Guinea or the applicant’s home country
Work Permit Restrictions Mostly period-related restrictions depending upon the type of work permit. (Check “Types Of Work Permit ” section in this table)
When Can The Employee Travel to Equatorial Guinea An employee can travel to Equatorial Guinea once he receives the IPA letter from the Ministry of Manpower. This letter has a pre-approved single-entry visa for the employee that gives the employer 6 months to get the employee to Equatorial Guinea and have the pass issued.
What’s The Cost Of A Business Visa USD 153-183
Duration Of Business Visa Processing 8-9 days
Switch Business Visa to Work Permit? No
Termination Of Work Permit Work permits would be terminated if:
  • The work permit is granted by an incompetent body
  • The work permit is granted illegally
  • The competent body rejects the residence card application.
  • The holder of the work permit changes their employer.

For details, book a demo with an EOR agent in Equatorial Guinea and get all of your queries answered first hand. Register here to proceed.

Payroll and Taxes In Equatorial Guinea

As a foreign company, you must adhere to the local tax laws. For this, it is important to decide whether you wish to hire locals or foreigners.

Tax Explanation
Personal Income Tax Rates
Annual Income (XAF) Tax Rate (%)
0-1,000,000 1.5
1,000,000-3,000,000 10
3,000,000-5,000,000 15
5,000,000-10,000,000 20
10,000,000-15,000,000 25
15,000,000-20,000,000 30
20,000,000 and above 35
Tax Returns Yes
Financial Year Closing 31 December
Corporate Tax The Corporate Tax Rate in Equatorial Guinea is 35% of all profits. Annual Tax Returns must be filed before 31 April of the following year.
Withholding Tax

Dividends 25% Interest 25%

Royalties 10%

Technical services 10%

Transportation 5%

Payroll Tax 15%
Sales Tax 15%
Employers Social Security and statutory contributions

21.5% to INESCO

1% to Work Protection Fund

Employees Social Security and statutory contributions

4.5% to INESCO

0.5% to Work Protection Fund

Reimbursements To claim the expense reimbursements, the employees must present a scanned copy of the receipts.
Public Pension

Insured Citizens- 4.5% of Gross Income

Employer- 21.5% of Gross Payroll

Benefactors:

  1. Old-age pension (60 and above
  2. Disability Pension
  3. Survivor Pension
  4. Funeral Allowance
Medical Insurance Health Insurance in Equatorial Guinea is recommended but not mandatory.

Incorporation: How to Set Up A Subsidiary In Equatorial Guinea

There are a fair amount of considerations if you want to incorporate a holding company in Equatorial Guinea; subsidiary laws, availability, taxes, business opportunities in Equatorial Guinea, and many more. But first, you need to decide the location where you want to set up your company in Equatorial Guinea. Since the subsidiary laws fluctuate with region and type of subsidiary, it is suggested to partner with a Third Party Expert in Equatorial Guinea for a quick and easy setup.

Next is to choose from the Equatorial Guinea Subsidiary options;

Limited Liability Company (LLC), Public Limited Company, or a Branch.

If your company provides a large range of products and services, then it is recommended to pick LLC. If a specific product or service is provided by your company, then the Branch option would be suitable.

The procedure for setting up an LLC in Equatorial Guinea is as follows:-

  1. Notarized legal company statutes
  2. Registration of the public deed into the commercial register
  3. Solvency Certificate
  4. Open a local bank account
  5. Apply for Authorization of Establishment to the Prime Minister 
  6. Apply for tax registration
  7. Notify the Minister of Labor once the operations start
  8. Register for local security
  9. Obtain a license for a small-medium size company from the Ministry of Commerce 
  10.  Register and obtain a license from the Ministry of Development and Planning
  11.  Obtain a Tax Identification Number (NIF)
  12.  Obtain a registration number from the Ministry of Labor
  13.  Obtain a Social Security Number

PEO (Professional Employment Organization) 

A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business.

Responsibilities EOR PEO
Legal employer Yes No. Legal co-employer
Services for a minimum of 1-5 employees 5-10 employees
Local business registration Not required Required
Insurance Workers Compensation provided Not provided

Skuad's EOR solution is a good way to expand your business in Equatorial Guinea without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more.

Conclusion

Do you think you are ready to expand your company’s business operations in Equatorial Guinea? Skuad’s Employer of Record Equatorial Guinea services can make the process fast and easy by handling your HR requirements in compliance with the local labor laws. If you want to discuss how Skuad’s payroll management services can help you, please get in touch with us today!

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