Guyanese business structures
TYPES OF BUSINESS
You’ve made the decision to start a business in Guyana. What business structure will you choose? How can you register your company with the Guyanese authorities? What business taxes do you have to pay?
The main forms of business in Guyana are:
Unincorporated businesses
Incorporated businesses
Foreign Firms or External Companies
Unincorporated business
The unincorporated business structure is the sole proprietor or ‘Trading as’ business.
Unincorporated Business Structure:
The sole proprietor or ‘Trading as’ business structure does not require a legal form. This means that you (and your private assets) are not protected from the debts of your business. ‘Trading As’ businesses can be set up without requiring the services of a lawyer.
Registration Process
Registering a is relatively simple. Find out more about the process.
Taxes for unincorporated businesses
Sole proprietor or ‘Trading as’ businesses pay the same amount of tax as individuals. The tax rate for this type of business is 28%.
Liability and unincorporated businesses
The main drawback of sole proprietor businesses is that there is no distinction between your private and business property. If you run up debts in your company then the debtors are entitled to claim your personal assets. If your business goes bankrupt and you can't personally cover it then you also go bankrupt.
Incorporated Business
Partnerships and Limited Liability Company (LLC) fall under the incorporated business structure in Guyana is. An incorporated business structure requires a legal form.
Lawyer required
Incorporation must be performed with the help of a lawyer who draws up the formation documents and also registers the business. It is also important to note that incorporated businesses usually have an additional level of tax implications. Find out more about the process and filing fees.
Incorporated businesses and taxation
LLCs have a different tax rate and are required to pay company tax. The administration (accounting and reporting requirements) is more complex and annual costs can be higher. A greater turnover is usually necessary to offset these expenses.
Corporation tax rates
The corporation tax rate is 40%.
Incorporated businesses and liability
The defining aspect of an incorporated business is that, by establishing the company as a legal entity or "legal person", you and your private assets are protected from the debts of your business. However, in cases of negligence, you may still be held accountable. It is essential that you fully understand the responsibilities of establishing an incorporated business, as failing to fulfill your administrative (accounting and reporting) and tax obligations can result in fines from the GRA (Guyanese Tax Office) or, in more severe cases, legal action.
Annual financial statements
Incorporated businesses must compile and submit annual financial reports and accounts to the Tax Authorities.
Foreign firms
Foreign firms or External Companies are incorporated outside of Guyana. These companies require additional documentation to operate in Guyana and are subject to a different fee structure.
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