Guyana is located on the northeast coast of South America bordering Suriname, Venezuela, and Brazil to the east, west, and south respectively. Guyana has a diversified population of approximately 8 million people comprised of European, African, East Indian, and of indigenous descent.
The history of Guyana is as diversified as its population with traces of the Dutch period, British rule, and indigenous origins. The country gained independence from British rule in 1966, and since then has enjoyed a stable democratic form of government. The economy of the country relies on agriculture, mining, forestry, mineral exports, and tourism.
The abundance and variety of flora and fauna, rainforests, wetlands, wildlife, and savannas attract thousands of tourists each year. The government has taken a number of actions to propel the tourism industry by extending loans to hotels, creating amenities for tourists, easy visa policies, etc.
Types of companies permissible in Guyana
Guyana is a developing nation. It offers opportunities to local and foreign investors to operate from the country by registering various formats companies.
The table below presents the legal business structures permitted in Guyana along with the required paid-up capital.
| S# | Type of company | Local name | Min. paid-up capital required |
| 1. | Sole Proprietorship | – | No paid-up capital required |
| 2. | Partnership | – | No paid-up capital required |
| 3. | Company | – | $5 (Pvt.ltd.) – $12,000 (PLC) |
| 4. | Limited Liability Company | – | $5 |
| 5. | Cooperative | – | $100 |
Sole Proprietorship
A sole proprietary business is owned and managed by a single natural person. It has limited scope for growth and the liabilities from the business are the personal responsibility of the owner.
Company
A company in Guyana is different from an LLC in terms of its management structure and requirements. Two or more individuals or entities can own a company. The owners of a company are represented by the stocks of shares. An LLC can only be owned by two or more individuals that are represented by their share in the company’s capital.
Other differences pertain to management, liabilities, and treatment of taxes between an LLC and a company. The company may be a limited (private limited company) or a public limited company. In the latter case, the company is permitted to amass capital through the public.
Limited Liability Company
As stated above, a company can have one or more owners who are not personally responsible for any liabilities arising from the business.
Partnership
A partnership is more complex than a sole proprietary business but simpler than other business formats. At least two people are required to form a partnership company, both assuming the different or the same level of liabilities in the business, as agreed at the time of registration.
Cooperative
A cooperative is owned and managed by its members for their own benefit. Usually, different state departments or industrial associations form a cooperative to benefit their employees, community, and themselves.
Cost involved in registering a company in Guyana
The cost incurred during the registration and incorporation process includes various government fees, taxes, professional consultations, etc. Most of the costs are in accordance with the Companies Act of Guyana 1991; and subject to variation depending on the size, location, and nature of the business.
Here are the costs that shall be budgeted beforehand.
Name reservation fee
The name of the company must be crosschecked for previous registration of the same or similar name. The fee is approximately US$11.
Articles of Incorporation (AOI) fee
An Article of Incorporation is an important document for companies. It must be drafted in the presence of all the company’s members and certified by an attorney before submission. The fee to get the AOI incorporated is $100 approximately.
Business registration fee
Once the AOI is incorporated, the company needs to get the business registered with the relevant authority. The fee is usually between $50 to $100.
Stamp duty
A court stamp certifies that the documents (AOI etc.) are in accordance with the law of the land, and that misappropriation or misrepresentation has occurred during the process. The stamp duty charges are a percentage of either the authorized capital OR the total number of documents submitted; approximately 0.1% of $1 per page of all the documents submitted.
Professional fees
Professional fees pertain to accountants, lawyers, notaries, or other services that may be rendered during the registration process. The fees charged by professionals such as lawyers or accountants can vary depending on the complexity of the registration and incorporation process. These fees can range from $200 to $1500 or more.
Cost of doing business in Guyana
Expenses incurred by the business during the normal course of business are budgeted before they even commence. Expenses such as rent, logistics, utilities, and salaries, are predictable and are most likely to be incurred regardless of the size and nature of the company.
Labor costs
The cost of labor in Guyana can vary depending on the skill level of the employee and the location of the business. The minimum wage in Guyana is currently $300 per month.
Taxation
Businesses in Guyana are subject to various taxes, such as income tax, value-added tax (VAT), property tax, and capital gains tax. The corporate income tax rate in Guyana is currently 25%.
Infrastructure costs
Businesses in Guyana may face additional costs related to infrastructure, such as electricity, transportation, and telecommunications. These costs can vary depending on the location and accessibility of the business.
Licensing and permits
Businesses in Guyana may require various licenses and permits to operate legally, which can involve additional costs.
Professional services
Businesses in Guyana may require the services of professionals such as lawyers, accountants, and consultants, which can involve additional costs.
It’s important to note that the cost of doing business in Guyana can be influenced by various factors, such as government policies, market conditions, and business regulations.
Advantages of operating business from Guyana
There are several advantages to the investors who operate businesses from Guyana, strategic and financial both.
The key benefits are:
Access to new markets
Being in proximity to huge markets such as Brazil, and Venezuela, and via them to most of the South and North American markets provides a strategic edge to the companies established in Guyana. And that too at far less cost than the region.
A registered company is a separate legal entity from its owners, which means that the company can enter into contracts, own property, and sue or be sued in its own name. This provides legal protection for the company’s owners and shareholders.
Access to funding
A registered company can issue shares to raise capital, which can help to finance the growth and expansion of the business. This can be particularly useful for startups and small businesses.
Tax benefits
Registered companies may be eligible for certain tax benefits, such as deductions for business expenses, depreciation of assets, and reduced tax rates for small businesses.
Business opportunities
Guyana has a growing economy with opportunities in various sectors, such as agriculture, mining, energy, and tourism. Registering a company in Guyana can provide access to these business opportunities and help to establish a presence in the local market.
