registering a business

8/10/2019 Registering a Business

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Starting a Business in Jamaica Published Jun 25, 2007

If you are interested in starting a business in Jamaica, there are a number of legal requirements that

must be followed. Jamaicas Business Name Act of 1934 makes it illegal to start a business without first

registering it with Companies of Jamaica, which was formerly called the Office of the Registrar of

Companies.

There are several benefits associated with registering your company or business. Your business is shown

on the website of the Companies of Jamaica. It will go up on the website just a week after youve

registered it. Also, you will have access to loans and grants, be able to get government and other

contracts, and inspire the confidence of your customers when they know they are dealing with a legal,

registered entity.

Before registering with Companies of Jamaica, however, you must decide upon the type of legal

structure your business will have. Your options include sole trader, partnership, company, or co-

operative. Once youve decided, you can then create a name for your business or company and request

two very important numbers: the Taxpayer Registration Number (TRN) and the National Insurance

Scheme (NIS) reference number. The applications for both of these numbers require:

2 passport-size photographs that have been signed by a Justice of the Peace a copy of your Birth

Certificate

Once you have your TRN and NIS numbers, you can take the next step, which is to register with the

Inland Revenue Department to obtain permission to take various legal tax deductions, such as those for:

Income tax Education tax (ED tax) General Consumption Tax (GCT)

If necessary, you will need to obtain the appropriate patents of copyrights from the JamaicanIntellectual Property Office. After that, you can register with the National Housing Trust (NHT) and apply

for a Tax Compliance Certificate (TCC).

In order to get a TCC, you must obtain a clearance letter from the National Insurance Scheme (NIS)

office, the National Housing Trust (NHT) office, and provide your Business Name Certificate.

In addition, you may new to comply with other licensing and/or inspections from the appropriate

government agencies, such as the Bureau of Standards. Specific industries must also provide an

Environmental Impact Assessment.

There are also other legal requirements associated with each type of business structure.

Sole Trader If you operate your business as a sole trader, you must submit a completed BN1 form. If you

are selling tangible goods, you must submit proof of residential address and a TRN , you must also

submit 3 passport-size photographs signed by a Justice of the Peace. Registration as a sole trader costs

JA$2,000.00.


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Partnership Partnerships can legally exist with as few as 2 persons or as many as 20 persons. If you want

to register your business as a partnership, you must submit:

A completed BN2 form Proof of residential address and TRN are required for the applicant Optional 3

passport-size photographs of each partner, signed by a Justice of the Peace The National Identification

Card of each partner

The registration fee for a partnership is JA$2,000.00

Company A business structured as a company must submit:

A completed Form 1, Declaration of Compliance A completed Form 1A, Articles of Incorporation A

completed Form 17, Address of Company

Form 1A must be stamped at the Stamp Office and Transfer Tax Department, which is located at 111

Harbour Street in Kingston. The cost for the stamp is $500.

Registration fee for a company is JA$12,000.

Additionally, companies must submit Form 20, which states the Board of Directors, with at the time of

registration or 14 days after registration for $4,000, but forms submitted after the end of the 14-day

period will cost $6,000.

All forms must be signed by a Justice of the Peace.

Co-operative A co-operative must have a minimum of 10 persons. If you want to form a co-operative,

you must register with the Department of Co-Operatives and Friendly Societies. To register, you must

provide:

A letter that requests registration to form a co-operative business Statement of the nature of the

business 3 mistake-free copies of the co-operatives proposed rules 2 completed application forms, plus

the registration fee of $2,000.00 2 copies of a completed registration agreement, signed by the co-

operatives relevant officers A project proposal that includes a business plan, cash-flow projections

and/or feasibility study for a 5-year period. This should show the plans monthly for the first year, and

then yearly for subsequent years.

When forming a co-operative, you must also form a steering committee from among the members. A

steering committee should comprise an odd number of members, e.g., 5, 7, or 9 members. Additionally,

the committee must be trained in Co-operative Management. Training is conducted for a minimum of10 hours at a cost of $900 per hour.

If your business will be involved with agricultural products, animals, or textiles, there are some

additional requirements. For example, you may have to get:

An approval letter from the Plant Quarantine Division, Ministry of Agriculture, which certifies that the

packaging house for fresh products has been inspected and certified Registration with the Bureau of


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Standards, if you export processed foods Certification from the Veterinary Service Division, Ministry of

Agriculture, if you are exporting aqua culture, inland and marine products and by-products If exporting

textiles, a list of machinery, equipment, categories of employees, and a monthly production plan

For export and import businesses, the registration process requires the following:

Jamaica Promotions Corporation (JAMPRO) Exporter Registration Form (JN1) Taxpayer Registration

Number (TRN) A copy of the Certificate of Incorporation or a copy of the Certification of Business Name

obtained from the Companies of Jamaica office (for a company) Proof of identification for individuals,

which may be a passport, drivers license, etc. A passport-size photograph

A Business Name Certification is valid for three years from the registration date.

You should also be aware that there are some additional costs associated with registration:

Re-registration costs for a company or individuals at JA$2,000.000 every 3 years All free-zone companies

must pay US$275.00 Co-operatives must pay an optional $3000.00 for the preparation of rules, or buy a

model rule, which costs $3,000.000 for a hard copy and $2,500 for an electronic copy.

The following are the names, addresses, and other contact information of the agencies responsible for

various portions of the business registration process:

Tax Administrator Jamaica (For the latest tax information)

To register your company

Companies of Jamaica 1 Grenada Way Kingston (876) 908-4419-26 phone (876) 960-7152 fax

www.orcjamaica.com [email protected]

For the Taxpayer Registration Number

registering a business

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