Rwanda

Employer of Record in Rwanda

Skuad's Rwanda Employer of Record (EOR) solution helps your business expand into Rwanda without the need for an entity setup. Its unified and automated global HR platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, etc., compliantly. It helps you streamline the global expansion process with the able assistance of our international network.

Rwanda at a Glance

Population: 12,374,397 (2019)

Currency: Rwandan franc (RWF)

Capital City: Kigali

Languages Spoken: English, French, Kinyarwanda, and Swahili

GDP: $11.061 billion (2020)

What You Must Know Before Employing in Rwanda

The issues of labor in Rwanda were initially governed by the law N° 13/2009 of 27/05/2009. In 2018, it was repealed, and the current law in force in Rwanda is n° 66/2018 of 30/08/2018 - Law regulating Labour in Rwanda. The new Rwandan labor law deals with contractual matters in private as well as public entities, plus it strictly demands a formal setup in business dealings. You must know the level of challenges involved in setting up a business in Rwanda before you leap. The complexities entailed are broken into bits of information and are hard to comprehend. No one can address these challenges better than Skuad.

Contractors vs. Full-Time Employees

Contractors vs. full-time Employees are like the two sides of a coin. They have their peculiar pros and cons. Rwandan business environment allows a smooth flow of service from contractors as well as full-time employees. You are the decision-maker here, and you ought to base your decision on the positives and the negatives of contractors and full-time employees.

The advantages of contractors include specialist expertise, flexibility, pocket-friendly, no Liability, and no supervision. The disadvantages of the same group include lack of certainty, excessive creativity, and no brief adherence. Per contra, the advantages of full-time employees include certainty, loyalty, and brief adherence; The disadvantages of the same group include constant supervision, risk management, and lack of experience.

A thorough perusal of the aspects mentioned above will help you pick the right option for your business.

Hiring in Rwanda

The Rwandan hiring process begins with an employment contract in place. This applies to both contractors as well as full-time employees.

Few popular websites facilitating the hiring process are as follows:

1. RwandanJob.Com - https://www.rwandajob.com/
2. Kora Job Portal - https://kora.rw/jobportal/
3. Job In Rwanda - https://www.jobinrwanda.com/
4. Job Web Rwanda - https://jobwebrwanda.com/
5. NDANGIRA - https://www.ndangira.net/how-to-find-a-job-in-rwanda-guide-for-foreigners/ (This one is especially for foreigners in Rwanda)

Skuad, using its diversified international network, operates to facilitate hiring processes globally. Be it building home teams or a remote team, Skuad has the solution. Book a demo to know more about Skuad solutions.

Probation & Termination

‍Probation Period

Article 13 of the Law regulating Labour in Rwanda deals with the probation period. The probation period in Rwanda cannot exceed three months. The employer-based on the nature of work, employee's performance, and conduct--can extend the probation period to another three months. If the probation period turns out to be successful, the employee is immediately offered employment, and the same is notified in writing. On the contrary, if the probation period turns out to be unsuccessful, the employee gets immediately terminated sans terminal benefits. The re-employment of an employee does not allow for a probation period.

Termination of Service

Section 2, titled 'Termination Of Employment Contract And Dismissal Of Employee' under Chapter II, titled 'Employment Contract, Apprenticeship And Internship Contracts' of the law regulating labor in Rwanda, deals with the intricacies of termination of service. A series of Articles under Section 2 provides for copious scenarios and appropriate measures for termination. The relevant ones are highlighted below:

EOR Solution in Rwanda

EOR solutions have several benefits. And it just gets better with a tech-enriched EOR solution - like the one offered by Skuad. Its Rwanda Employer of Record (EOR) solution makes it easier and faster for businesses to expand into Bermuda. It ensures smooth and quick processing of payroll and other employment responsibilities without any entity establishment. Contact Skuad to learn more.

Outsourcing Employment Through an Employer of Record

Outsourcing is an integral part of any business activity. Employers of Record can hire and manage your local employees, handle all local issues, take care of mandatory compliances, and eliminate all your employment-related risks. Besides, EOR service providers can arrange work permits and business visas for your expatriate personnel. Skuad's integrated HR platform, a global network in more than 150 countries, and skilled industry experts can provide bespoke EOR solutions for your expansion efforts in Rwanda. Visa and work permit requirements are the hurdles here. With Skuad's international network, the said issues are solved.

Types of Visas in Rwanda

Rwanda is a member of the East African Community, an intergovernmental organization. The visa policy of Rwanda requires individuals to obtain a visa for entry into the said country. However, visa-exempt countries are an exception. Further, six months of passport validity with one empty page is a prerequisite for obtaining visas in Rwanda.

Work Permits

To work in Rwanda, you must hold a work permit in addition to your visa. Several classes of visas and work permits are made available in Rwanda, but it is mostly classified into two particular permits: temporary permits and permanent permits. Skuad, by all means, can assist you in this. Some crucial bits of information are tabulated below:

Things You Must Know to Set Up Payroll in Rwanda

Rwanda follows a 'Pay As You Earn (PAYE)' system, and as a result, the employees are made to pay personal income taxes all around the year. Interestingly, Rwanda offers various payroll options, namely: Remote; Internal; Rwanda payroll processing company; and Rwanda payroll outsourcing. An insight into the tax policy of Rwanda will make you appreciate the solutions offered by Skuad.

Taxes in Rwanda

Incorporation: How to Set Up a Subsidiary in Rwanda

If you are certain about setting up a subsidiary in Rwanda, you have the option to form one of these entities: public limited company, limited liability company (LLC), and representative company. The typical choice for subsidiaries is a limited liability company. The following steps are necessary for setting up a subsidiary in Rwanda:

1. The first step in this direction will require you to register your company with a copy of your passport.
2. You must prepare the Memorandum of Association and Articles of Association of your company and submit two copies to the Registrar of Companies.
3. The third step is to deposit your share capital or paid-up capital - approximately $850, in the country's bank.
4. The fourth step involves the problematic aspects of tax payment and filing of accounts with the Registrar of Companies. You will be required to go through your accounts if you make more than 400 million Rwandan francs per year.

Relax. You need not worry about any of the formalities involved if you join hands with Skuad.

Conclusion

Business is becoming increasingly global and competitive, forcing companies to scout for opportunities in countries worldwide. With its natural resources and economic reforms, Rwanda is emerging as an attractive investment destination. With Skuad as your partner, you can easily and quickly expand your business in Rwanda. Your idea of business expansion can get better and bigger with Skuad's unique tech-enriched solution system. Skuad's EOR solution will help minimize the complexity and cost of doing business in Rwanda. Adding on, it adds flavors to a business enterprise by establishing chains between local entities and foreign entities. Connect with Skuad Experts to know more about tailor-made solutions designed to cater to your business requirements.

FAQs

1) What is the employer of record in Rwanda?

An Employer of Record (EOR) becomes the legal employer for your Rwanda staff, handling HR complexities like payroll, taxes, and social security. This eliminates the need to set up a local company, saving time and resources. EORs also ensure compliance with Rwanda's labor laws, minimizing legal risks associated with international recruitment.

‍2) Is an employer of record same as PEO?

EOR (Employer of Record) and PEO (Professional Employer Organization) handle HR internationally but with a key difference: legal responsibility. EORs become the legal employer for your global hires, handling everything from payroll to compliance. PEOs co-employ your staff, sharing some HR tasks but requiring you to be the legal employer and often have a local entity set up.

‍3) What is the difference between payroll and employer of record?

Payroll companies are like digital accountants, focusing on processing salaries and taxes. EORs, on the other hand, act as your entire international HR department. They handle payroll, taxes, and benefits, but also become the legal employer for your global staff, ensuring compliance with local labor laws.

4) What is geo employer of record?

GEO (Global Employment Organizations) act as your legal employer globally, handling HR tasks like payroll, taxes, and administration. Think of them as your one-stop shop for global workforce management. 

‍5) Why use an employer of record?

Employer of Record efficiently accelerates global hiring. They act as the legal employer for your international talent, handling HR complexities like payroll, taxes, and compliance. This eliminates the need for a local entity setup, saving you time and resources.