Labour

Establishing a Business in The Bahamas

An investor seeking to establish a business in The Bahamas must submit a proposal to The Bahamas Investment Authority. The proposal must include the projected number of Bahamian and non-Bahamian employees, and the projected number of non-Bahamian key and non-key employees. Non-Bahamian employees will require work permits.

Businesses may deduct a percentage of their Business License Fee for each full-time Bahamian employee hired in a given year, up to a maximum of ten employees. The deduction varies from 3 percent of the fee per employee to 5 percent, depending on the size and profitability of the business.

Getting a Business Licence

Anyone planning to operate business for profit must obtain a licence.

Applications are renewed annually between January to april, expiring in December. Generally fees are assessed upon annual gross receipts less the cost of producing turnover.

While a fully Bahamian-owned business may begin as soon as the application for a licence has been submitted, a business that is not fully Bahamian-owned must wait for the application to be approved.

Business licence applications are available at the Business Licence and Valuation Section of the Ministry of Economic Development.

Find Business license info and forms here:
www.bahamas.gov.bs
Those who held permanent residency status before the Immigration Act (1975) automatically retain the status. Spouses of Bahamian citizens can obtain a Certificate of Permanent Residence with the right to work at any time for women and after five years of marriage for men.

Hiring Employees
If you plan to hire non-Bahamian employees for your household or business in the Bahamas make sure to get work permits. In order to work in the Bahamas an employee must have a valid work permit. Furthermore, the Bahamas Immigration Policy ensures that Bahamians be considered first for all employable positions, making it hard for ex-Pats to find a steady 9-to-5.

Work permits can range in cost from $250 to $7,500 and it's the employer's responsibility - by law - to sponsor the work permit for non-Bahamian employees. The Department of Labour provides current and complete statistics on employments in all labour-related activities.

National Insurance
Established under the National Insurance Act and administered by the government, National Insurance is mandatory. It provides a wide range of both long and short term benefits for qualifying persons.

Insurance contributions total 8.8 percent of each employee's basic wage. For those who earn less than $60.00 per week, the employer pays 7.1 percent and the employee 1.7 percent; for those earning more than $60.00 per week, the employer pays 5.4 percent, the employee 3.4 percent. The maximum wage on which National Insurance contributions are required is $250.00 per week ($13,000 per year); no additional contribution is required for the portion of a salary that exceeds that amount.

In addition National Insurance strives to assist with the sustained, orderly socio-economic growth and development of the country.

National Insurance:
www.nib-bahamas.com