So you want to hire someone in Afghanistan. Problem is, your company is located somewhere else.

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Afghanistan, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.

But there’s a catch: EOR solutions in Afghanistan are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Afghan entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Afghanistan, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Afghanistan as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in150+ countries (like Afghanistan). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Afghanistan:

Everything you should know about using an EOR in Afghanistan

Are you considering expanding your business operations to Afghanistan? If so, you may be wondering about the best way to hire local talent. One option is to use an Employer of Record (EOR) to manage payroll and compliance.

However, there are some legal and regulatory conditions specific to Afghanistan that you should be aware of before making a decision. In this post, we'll explore everything you need to know about using an EOR in Afghanistan and why hiring an independent contractor might be a better option.

What is an EOR?

An EOR is a third-party company that acts as the employer of record for your local employees. This means that the EOR is responsible for managing payroll, benefits, taxes, and compliance with local labor laws. By using an EOR, you can avoid the administrative burden of setting up a local entity and managing payroll and compliance on your own.

Legal and regulatory conditions in Afghanistan

Afghanistan has a complex legal and regulatory environment that can make it challenging to do business. Here are some key considerations when using an EOR in Afghanistan:

• Work Permits: Foreign workers are required to obtain a work permit before they can work in Afghanistan. The EOR will be responsible for obtaining work permits for your employees.
• Taxation: Employers are required to withhold taxes from their employees' salaries and remit them to the Afghan government. The EOR will be responsible for managing payroll and ensuring that taxes are paid on time.
• Social Security: Employers are required to contribute to the Afghan Social Security Fund on behalf of their employees. The EOR will be responsible for managing these contributions.
• Employment Contracts: Employment contracts must be inwriting and must comply with Afghan labor laws. The EOR will be responsible for drafting and managing these contracts.

Why hiring an independent contractor might be a better option

Given the complex legal and regulatory environment in Afghanistan, hiring an independent contractor might be a better option than using an EOR. Here are some reasons why:

• Flexibility: Hiring independent contractors doesn’t come with the same legal burden as hiring employees. You can onboard your team faster, and you won’t be not responsible for a mountain of expensive employer obligations.
• Cost Savings: Hiring an independent contractor can be more cost-effective than using an EOR, as you won't have to pay for benefits or taxes.
• Reduced Administrative Burden: Hiring an independent contractor means you won't have to worry about managing payroll or compliance with local labor laws.

Using an EOR in Afghanistan can be a viable option for managing payroll and compliance. However, the complex legal and regulatory environment in Afghanistan means that hiring an independent contractor might be a better option for some businesses. By understanding the legal and regulatory conditions in Afghanistan and weighing the pros and cons of each option, you can make an informed decision about the best way to hire local talent for your business.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched a Misclassification Guarantee: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring in Afghanistan? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand