Investors have shown a growing interest in conducting business in Guyana due to its rapid economic growth and untapped investment sectors. The ease of entering the market is another attractive factor, with company formation in Guyana requiring only seven steps. Guyana, located in the northeast of South America and bordered by Brazil, Suriname, and Venezuela, is considered a Caribbean nation and is a member of the Caribbean Community (Caricom), along with Belize, Suriname, and 13 English-speaking Caribbean island nations. Guyana also has free trade agreements with the Dominican Republic and Costa Rica, as well as preferential access to the US market through the Caribbean Basin Trade Partnership Act (CBTPA). The country signed an investment cooperation and facilitation agreement with Brazil in December 2020.
Guyana has experienced significant economic growth in recent years, with its gross domestic product (GDP) and gross national income (GNI) increasing more than sixfold between 2005 and 2019. The GDP reached $5.17 billion in 2019, and the GNI per capita was $6,630, according to the World Bank. Foreign direct investment (FDI) has also seen a major increase, growing tenfold in the five years leading up to 2019. Guyana’s main exports include ships, shipping containers, metals, precious gems (especially gold, aluminum ore, and diamonds), and foodstuffs such as cereals and fish. Trinidad and Tobago is its principal trading partner, but other key destinations for exports include Canada, Ghana, Norway, and Portugal.
When choosing a legal entity for starting a business in Guyana, there are four main options: sole proprietorship, partnership, private limited liability company (PLLC or LLC), and public liability company (PLC). Each type has its own prerequisites and advantages or disadvantages. An LLC is the most popular choice among foreign investors due to its convenience and low-cost establishment. It can be 100 percent foreign-owned, requires a minimum of two shareholders, and has limited liability for the shareholders. A PLC, on the other hand, is a publicly traded company on a stock exchange and requires a minimum of two directors.
To form an LLC in Guyana, there are seven steps to follow:
1. Choose a unique company name, avoiding similarity to existing registered companies.
2. Obtain a declaration of compliance from a locally-registered attorney confirming the eligibility of signatories.
3. Register the company with the Guyana Registry of Companies, which will publish the certificate of incorporation.
4. Apply for a tax identification number (TIN) from the Guyana Revenue Authority Agency.
5. Register for Value Added Tax (VAT) with the specialized department of the Guyana Revenue Authority.
6. Register with the National Insurance Scheme for social security coverage.
7. Create a company seal, either embossed or rubber, for official documentation.
Biz Latin Hub offers assistance with company formation in Guyana through their team of multilingual specialists.
