Expand your business into the Bahamas, with or without a local entity
The Bahamas is the wealthiest country in the West Indies and has long been an attractive site for foreign investment. The Bahamian economy is dominated by tourism and financial services, although it does have various other successful industries.
At New Horizons, we offer a full suite of expansion services to help organizations expand into the Bahamas. Our professional employer organization (PEO), payroll, and employ of record (EOR) services give you the ability to outsource all the difficult administration and compliance work so you can focus your efforts on a successful expansion.
Our dedicated in-house recruitment team can also help you to find, hire, and onboard new employees in the Bahamas. If you have not yet established an entity in the country, you can use our local subsidiary as employer of record, providing all the benefits of hiring talent in the Bahamas but without any of the associated administration.
Our outsourcing services could cut your expansion expenditure by thousands, speed up your growth, and give you greater flexibility moving forward.
Our Bahamas PEO simplifies your expansion
New Horizons enables your business to expand its operations into the Bahamas- without setting up a legal subsidiary.
Hiring in the Bahamas: Employment law overview
Bahamas employment contracts
Employment contracts in the Bahamas can technically be either verbal or written. However, we strongly recommend providing formal written contract of employment whenever hiring in the country. These contracts should cover all necessary details of the role such as compensation, benefits, working hours, and so on. They should also be written in English and use the national currency of the Bahamian dollar.
Working hours in the Bahamas
The standard working week in the Bahamas is 40 hours, consisting of five eight-hour days. However, the work culture is very relaxed at many companies, so hours can often be flexible.
Public holidays in the Bahamas
There are several annual public holidays in the Bahamas, which most employees receive as leave from work:
- Majority Rule Day
- Randol Fawkes Labor Day
- Independence Day
- Emancipation Day
- New Year’s Day
- National Heroes Day
- Good Friday
- Easter Monday
- Whit Monday
- Christmas Day
- Boxing Day
Vacation in the Bahamas
After one year of service with an employer, employees in the Bahamas can take paid vacation leave. The length of the vacation leave allowance is dependent on the length of service and usually ranges from ten to 15 days.
Sick leave in the Bahamas
Employees in the Bahamas are usually entitled to between one and two weeks of paid sick leave annually. A medical note is generally required as proof of sickness. You should always be sure to lay out the exact terms in an employment contract.
Parental leave in the Bahamas
Employees in the Bahamas are generally entitled to 12 weeks of paid maternity leave after one year of service with an employer. This leave can only be taken once every three years from the same employer.
Employee severance and terminations in the Bahamas
In general, employees in the Bahamas are entitled to between two and four weeks of notice prior to termination. The exact length of notice depends on the employee’s length of service with an employer.
Taxation in the Bahamas
Employees and employers in the Bahamas must pay a percentage of salaries as social security contributions. Employees pay 3.9% and employers pay 5.9%. Employees must also pay a 9.8% national insurance, which should be withheld by the employer.
The Bahamas does not have an income tax and tax revenue is instead derived from VAT and other forms of taxation.
There is no corporate income tax in the Bahamas.
Health insurance in the Bahamas
There is a public healthcare system in the Bahamas, but it is limited to certain groups such as the elderly. For this reason, many employees expect private medical insurance to be provided by their employer as part of their benefits packages.
Bahamas compensations & benefits
Compensation laws in the Bahamas
The minimum wage for employees in the Bahamas is $42 (BSD) per day in most cases.
Benefit management in the Bahamas
Setting up your Bahamian benefits system as a foreign employer is a complicated process. The laws are complex, federal and provincial differences need to be taken into account, and it may be necessary to send representatives. All of this can make it a lengthy and expensive process.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At New Horizons, our Bahamas employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.
How can New Horizons help you expand into the Bahamas?
New Horizons’ Bahamas PEO, employer of record, and payroll services can provide your organization with everything you need to start trading in the Bahamas. We can help you commence operations in the Bahamas in as little as 48 hours, and could save you over 80% in expansion costs, even if you don’t have a registered entity in the country.
New Horizons can manage your company’s payroll, benefits, and expenses in the Bahamas. Additionally, we can oversee HR duties, as well as employment and tax compliance. And as the only global PEO with an in-house recruitment team, New Horizons will source, hire, and onboard your local workforce.
Contact us today to discover how our Bahamian-specific services can support your expansion.