Small Business Setup in Guyana

Setting up a business in Guyana involves navigating various legal requirements and regulations. Understanding these requirements is essential for establishing a compliant and successful enterprise.

Business Structure Options

In Guyana, entrepreneurs can choose from several business structures, each with different legal and tax implications:

• Sole Proprietorship - A business owned and operated by one person with no legal distinction between the owner and the business
• Partnership - A business owned by two or more individuals who share responsibilities and profits
• Limited Liability Company (LLC) - A separate legal entity that provides liability protection for owners
• Corporation - A legal entity separate from its owners with shares that can be bought and sold
• Cooperative - An organization owned and operated by a group of individuals for their mutual benefit

Business Registration Process

The general process for registering a business in Guyana includes:

1. Business Name Reservation - Search and reserve your business name at the Deeds and Commercial Registry Authority
2. Business Registration - Register as a sole proprietorship, partnership, or company
3. Tax Registration - Register with the Guyana Revenue Authority for relevant taxes
4. Social Security Registration - Register with the National Insurance Scheme
5. Industry-Specific Licenses - Obtain any licenses required for your specific industry
6. Municipal Permits - Secure necessary permits from local authorities

Registering a Company

For those forming a limited liability company, the process involves:

• Filing Articles of Incorporation
• Creating a company constitution or bylaws
• Appointing directors and corporate secretary
• Issuing shares to shareholders
• Filing annual returns with the Registrar of Companies

Tax Considerations

Businesses in Guyana are subject to various taxes, including:

• Corporate Income Tax - Currently 25% for commercial companies and 40% for telephone companies
• Value-Added Tax (VAT) - 14% on taxable supplies of goods and services
• Property Tax - Based on property value and ownership
• Withholding Tax - Applied to certain payments to non-residents
• Pay As You Earn (PAYE) - Withheld from employee salaries
• National Insurance Scheme (NIS) Contributions - For both employers and employees

Employment Laws

When hiring employees, businesses must comply with Guyana's labor laws, including:

• Providing written contracts of employment
• Adhering to minimum wage requirements
• Complying with working hours and overtime regulations
• Providing statutory leave (annual, sick, maternity)
• Ensuring workplace safety and health standards
• Making required NIS contributions
• Following termination procedures

Business Incentives and Support

Guyana offers various incentives and support for small businesses, including:

• Tax holidays and exemptions for certain industries
• Duty-free concessions on equipment and machinery
• Export incentives
• Small business development grants and loans
• Training and capacity building programs
• Support from agencies like the Small Business Bureau

Essential Business Documents

Important legal documents for small businesses include:

• Business registration certificate
• Tax identification number (TIN) certificate
• NIS registration
• Industry-specific licenses
• Employment contracts
• Client/customer contracts
• Supplier agreements
• Partnership or shareholder agreements (if applicable)
• Lease agreements (if renting property)