RemotePad Logo

Hire and Recruit

Find a Provider

Hiring & Recruitment

Find a Provider

Hire & Pay - Globally

Best Employer of Record (EOR)

Discover the best EOR companies

TOP 10 PEO Companies

Find the best PEO

TOP 10 Payroll Providers

The best payroll companies

Employee Relocation Services

Relocate employees globally

Trusted Reviews & Guides

Our Methodology

Why you can trust our assessment

How does a PEO Work

Learn the benefits of using a PEO

PEO vs HRO

Which one should you use?

PEO vs HRIS

Difference between PEO and HRIS

Work Visas

How to apply for a work visa

Digital Nomad Visas

Get a digital nomad visa

Outsource Recruitment

How to outsource recruitment

Hire Globally

Find international talents

Editor's Picks

Compare Providers

Egypt Employer of Record (Egypt EOR)

Best Egypt Employer of Record

In this article

Egypt Employer of Record (Egypt EOR)
What is an Egypt Employer of Record?
How does an Egypt Employer of Record work?
How to Engage an Egypt Employer of Record
What Are the Benefits of an Egypt Employer of Record?
What Are the Disadvantages of an Egypt Employer of Record?
Top 5 Egypt Employers of Record
Egypt Employer of Record — Choose Wisely
FAQs

Key Points 

  • An Egypt Employer of Record (EOR) helps international companies to hire employees in Egypt.
  • An Egypt EOR takes over employment compliance, payroll and HR, leaving client companies to focus on what matters. 
  • When choosing an Egypt EOR, make sure to choose a provider with expertise in the local marketplace and knowledgeable about Egypt labor law. 

What is an Egypt Employer of Record?

An Employer of Record (EOR) in Egypt acts as a bridge for foreign businesses to seamlessly hire local talent without having to establish a formal entity in the country. Essentially, the EOR becomes the legal employer in Egypt, managing all aspects related to employment, tax, and local labor laws. The employees, while legally employed by the EOR, work under the direction and control of the foreign company.

How does an Egypt Employer of Record work?

Using an EOR simplifies the complexities of global expansion. They usually provide the following services:

  1. Recruitment Assistance. While you can source and choose the candidates, the EOR can facilitate the recruitment process, leveraging their local expertise.
  2. Employment Contracts. The EOR drafts and manages contracts that align with Egyptian labor laws.
  3. Payroll Management. They handle salary disbursements, ensuring timely payments and adhering to local tax obligations.
  4. Legal Compliance. The EOR is responsible for navigating the intricacies of Egyptian employment laws, ensuring that all practices remain compliant.
  5. Benefits Administration. They provide employees with benefits as required by Egyptian regulations, from health insurance to annual leave.

How to Engage an Egypt Employer of Record

To make the most out of an EOR’s services, follow these steps.

  1. Do Your Homework. Research to find an EOR that understands your industry and aligns with your business values.
  2. Initial Discussions. Engage in detailed discussions to understand their processes, costs, and capabilities.
  3. Formal Agreement. Upon satisfaction, sign an agreement that outlines responsibilities, deliverables, and terms of service.
  4. Onboarding. With the agreement in place, the EOR will help onboard the employees, ensuring a smooth transition.

What Are the Benefits of an Egypt Employer of Record?

Potential advantages of going with an Egypt Employer of Record, rather than hiring through your own subsidiary include: 

  1. Quick Market Entry. Avoid the hurdles of setting up a legal entity and dive straight into operations.
  2. Cost Efficiency. Save on potential setup costs, administrative expenses, and legal complexities.
  3. Local Expertise. Utilize the EOR’s understanding of Egyptian market nuances, culture, and regulations.
  4. Risk Mitigation. By entrusting compliance and HR responsibilities to experts, reduce the risk of non-compliance and associated penalties.

What Are the Disadvantages of an Egypt Employer of Record?

Potential downsides of going with an Egypt Employer of Record include:

  1. Dependency. While operational control remains with the foreign company, there’s a reliance on the EOR for HR and legal functions which could lead to over-reliance.
  2. Fees. Engaging an EOR comes at a cost, potentially increasing operational expenses so that, at a certain scale, setting up a local subsidiary may make more sense. 
  3. Potential Misalignments. There might be occasional disagreements or differences in operational style between the company and the EOR.

Top 5 Egypt Employers of Record

 

  1. Connect Resources. With an established footprint in the Middle East and North Africa, Connect Resources use their regional expertise to offer a wide range of HR services, including EOR solutions. Read more to find out why Connect Resources is the top Egypt EOR in our 2023 Connect Resources breakdown and analysis. 
  2. Horizons. Horizons stand apart from their competition in Egypt by hiring through a local entity (where competitors outsource), having deep local expertise and being excellent value for money. Read more in our 2023 Horizons EOR analysis.
  3. Kinza HR. Providing holistic HR services across the Middle East, Kinza HR cater to diverse sectors, understanding unique needs.
  4. HLB Hamt.  Known for its global presence and expertise in accountancy, audit and consulting services, HLB Hamt can also support EOR and payroll in Egypt.
  5. Deel. A modern, tech-centric EOR emphasizing transparency, efficiency, and adaptability, Deel is a useful Employer of Record for companies that need support in Egypt alongside multiple countries. 

Egypt Employer of Record — Choose Wisely

Employers of Record have emerged as strategic partners for businesses looking to expand in dynamic markets like Egypt. Their knowledge, expertise, and local presence can act as invaluable assets for foreign businesses. However, as with any business decision, it’s essential to weigh the advantages against the potential challenges. With thorough research, clear communication, and careful selection, businesses can harness the benefits of an EOR to successfully navigate the Egyptian market landscape.

FAQs

An EOR in Egypt hires employees on behalf of foreign companies, managing all local employment-related responsibilities including payroll, benefits, and compliance with Egyptian labor laws. The employees, while legally employed by the EOR, work under the direction of the foreign company. A staffing agency, on the other hand, primarily focuses on recruiting and providing personnel to businesses but doesn't necessarily take on the employment responsibilities and liabilities that an EOR does.

Yes, it's possible to transition from using an EOR arrangement to establishing your own legal entity in Egypt. This process would involve setting up your own business entity, obtaining necessary permits and licenses, and transferring employees from the EOR to your new company. It's advisable to consult with local legal and business experts to ensure a smooth transition and compliance with Egyptian regulations.