Talking Dollars & Making Sense: Benefits of Registering Your Business

Jul 28, 2024 News

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Kaieteur News – Welcome back to Talking Dollars & Making Sense! Today, we’re exploring the steps to register your business in Guyana, whether you’re starting a sole proprietorship or a corporation. We’ll also cover the importance of becoming compliant with the Guyana Revenue Authority (GRA) and the National Insurance Scheme (NIS), and how the Small Business Bureau (SBB) can assist registered businesses.

Understanding Sole Proprietorship and Corporations

Sole proprietorship is a business structure where an individual owns and runs the business. It’s straightforward to establish and manage, making it ideal for small-scale operations. However, the owner is personally liable for all business debts and obligations.

Corporations are separate legal entities from their owners, offering benefits like limited liability protection, which shields personal assets from business liabilities. This structure is beneficial for raising capital, as it allows for the issuance of shares.

Why Register or Incorporate Your Business?

Registering or incorporating your business in Guyana provides numerous benefits:

1. Legal Recognition: It gives your business a legal identity, allowing you to enter into contracts, open bank accounts, and protect your business name.
2. Liability Protection: For corporations, it offers a shield against personal liability, protecting your personal assets.
3. Credibility and Trust: A registered business enjoys greater credibility, which can help attract customers, suppliers, and investors.
4. Access to Financial Services: Registered businesses can access loans, grants, and other financial services, often unavailable to unregistered entities.

Steps to Register a Sole Proprietorship

1. Choose a Business Name: Ensure it is unique and not already in use by checking the Deeds and Commercial Registries Authority (DCRA) database.
2. Complete the Registration Form: Include details like the business name, nature, and principal location.
3. Submit the Form and Pay Fees: Submit the form along with a processing fee of $6,000 at the DCRA office. You will receive your business name certificate within three working days.For more details visit https://dcra.gov.gy/business-name/.
4. Renew Annually: The registration must be renewed every year, with a renewal fee of $2,500.

 Steps to Incorporate a Company

1. Requirements: This includes the Articles of Incorporation, Notice of Directors, Consent to Act as Director, Notice of Secretary, Consent to Act as Secretary, Notice of Registered Office, Declaration of Compliance, Name Search and Reservation, National ID Card or Passport and being at least 18 years old and in sound mind. For more details visit https://dcra.gov.gy/incorporating-a-company/.
2. Submit Application: File these documents at the DCRA with an incorporation fee of $60,000.
3. Obtain Certificate of Incorporation: The process typically takes three working days, after which you receive your company certificate.

Becoming GRA and NIS Compliant

Guyana Revenue Authority (GRA): Businesses must register with the GRA to obtain a Tax Identification Number (TIN). This registration is crucial for tax purposes, including filing returns and paying taxes like income tax and VAT.

National Insurance Scheme (NIS): Registration with the NIS is mandatory for all employers and self-employed individuals. It ensures contributions towards social security benefits for employees, including sickness, maternity, and old-age pensions.

Benefits of Compliance

1. Avoid Legal Issues: Compliance helps avoid fines and legal complications.
2. Employee Benefits: NIS registration provides essential benefits to your employees, enhancing job satisfaction and retention.
3. Business Growth: Compliance enhances your business’s credibility, aiding in customer and investor trust.
4. Access to Opportunities: Compliance is often a prerequisite for government contracts, receiving grants and obtaining loans.

Support from the Small Business Bureau (SBB)

The SBB provides invaluable support to registered, compliant businesses, including:

1. Grants: Up to $500,000 for eligible businesses to help sustain and grow operations.
2. Loans: Collateral guarantees for loans with interest rates as low as 6%, up to $30,000,000.
3. Business Incubators: Facilities that provide workspace, mentorship, and networking opportunities.
4. Entrepreneurship Awareness and Training: Sessions and workshops to help you develop your business skills.

By following these steps and becoming GRA and NIS compliant, you’re not only legally protecting your business but also setting it up for success. The Small Business Bureau offers additional support to help your business thrive in Guyana. Feel free to reach out at [email protected] with your thoughts, questions, and stories.Until then, keep refining your plans—your entrepreneurial journey is just beginning!

 

 

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• Access to Financial Services, Credibility and Trust, Legal Recognition, Liability Protection

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