Calculator T-06
Caribbean subsidiary incorporation vs EOR break-even analyzer
Model 24 months of fees for two paths: incorporate a local subsidiary (with EOR as a bridge until the entity can run payroll) or stay on an EOR. See the month and the headcount at which your own entity starts to pay off.
Reviewed 6 Nov 2026 · 2026 statutory rulesT-06
Entity vs EOR break-even analyzer
2026 rules · runs in your browserEntity cost benchmarks by island
Set-up covers incorporation, legal fees and tax and social-security registration. Annual fixed cost covers a resident director or company secretary where required, audit, tax filings and registered office. These are 2026 benchmarks for a simple private company; regulated activities cost more.
| Island | Set-up | Annual fixed | Registration | Bank KYB |
|---|---|---|---|---|
| Jamaica | 3,500 | 9,000 | 2 mo | 5 mo |
| Trinidad & Tobago | 4,500 | 12,000 | 2 mo | 6 mo |
| Barbados | 4,000 | 11,000 | 2 mo | 5 mo |
| Guyana | 3,800 | 10,500 | 2 mo | 6 mo |
| Dominican Republic | 3,200 | 9,600 | 2 mo | 4 mo |
| The Bahamas | 6,500 | 15,000 | 2 mo | 6 mo |
| Cayman Islands | 9,500 | 22,000 | 1 mo | 4 mo |
| Bermuda | 12,000 | 28,000 | 2 mo | 5 mo |
| Puerto Rico | 2,500 | 9,000 | 1 mo | 2 mo |
| St. Lucia / OECS | 3,500 | 9,000 | 2 mo | 5 mo |
| Curaçao | 5,000 | 13,000 | 2 mo | 5 mo |
| Aruba | 5,000 | 13,000 | 2 mo | 5 mo |
The break-even arithmetic
The headline break-even headcount is low; the real question is how long the bridge lasts and whether the team will reach the headcount before the entity is ready.
Reasons to incorporate that are not about fees
- Local contracts, government tenders or licences that require a locally registered employer (for example Guyana local content registration).
- Holding local assets, leases or a free-zone permit in the Dominican Republic.
- Sponsoring many work permits on your own account.
- Building a long-term brand as a local employer for recruiting.
And reasons to wait: uncertain headcount, a pilot team, or a market test of under 12 months. See EOR vs PEO vs payroll bureau.
Straight answers
FAQs
How long does it take to open a business bank account in the Caribbean?
For a newly incorporated, foreign-owned company, commercial bank KYB commonly takes 4–7 months in Jamaica, Trinidad, Guyana, Barbados and The Bahamas, and 2–4 months in Puerto Rico and the Dominican Republic.
At what headcount should I set up my own entity?
On fees alone the steady-state break-even against a regional EOR is about 4–10 staff, and lower against a global EOR. Including the bank delay and bridge period, most teams that will reach 10–15 staff within 18 months save by incorporating.
Can I move employees from an EOR to my own entity later?
Yes. Plan it as a transfer with continuity of service so severance rights carry over, and check the EOR contract for transfer or conversion fees.
Do I still need a payroll provider with my own entity?
Usually yes. A payroll bureau handles monthly statutory filings such as Jamaica’s S01 and Trinidad’s NIS returns, typically for $25–$65 per employee per month.
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Get direct regional EOR & payroll quotes
Tell us the island, headcount and service. We route it to in-country operators and you receive itemised quotes by email from hello@caribbeanhr.com.
Every quote states
- Fee per employee per month, in writing
- FX method and the spread on payroll funding
- Deposit size and when it is returned
- The legal entity that employs your staff