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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 browser
4–7 mo
Local bank account onboarding
KYB for foreign-owned companies
$45
Payroll bureau benchmark
per employee per month
8–15
Typical break-even headcount
regional EOR comparison
24 mo
Horizon modelled
month-by-month

Entity 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.

Benchmarks used by the analyzer (USD)
IslandSet-upAnnual fixedRegistrationBank KYB
Jamaica3,5009,0002 mo5 mo
Trinidad & Tobago4,50012,0002 mo6 mo
Barbados4,00011,0002 mo5 mo
Guyana3,80010,5002 mo6 mo
Dominican Republic3,2009,6002 mo4 mo
The Bahamas6,50015,0002 mo6 mo
Cayman Islands9,50022,0001 mo4 mo
Bermuda12,00028,0002 mo5 mo
Puerto Rico2,5009,0001 mo2 mo
St. Lucia / OECS3,5009,0002 mo5 mo
Curaçao5,00013,0002 mo5 mo
Aruba5,00013,0002 mo5 mo

The break-even arithmetic

Steady-state break-even headcount = annual fixed ÷ 12 ÷ (EOR fee − bureau fee) Jamaica, regional EOR: 9,000 ÷ 12 ÷ (250 − 45) = 3.7 → 4 staff Jamaica, global EOR: 9,000 ÷ 12 ÷ (599 + FX − 45) ≈ 2 staff But the bridge matters: until the bank account opens (≈ month 7) staff stay on EOR, so the entity path carries set-up + fixed + EOR. With 6 staff in year 1 and 15 in year 2 on a regional EOR, the entity overtakes the EOR in the second year.

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

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