Hopeton Morrison, ContributorWE CONTINUE to receive enquiries from Jamaicans residing locally and overseas who have an interest in starting up and registering businesses in Jamaica. This week we respond to two letters:
Derar Hopeton,
Can I be informed of the fee to register a non- profit corporation, considering that all the necessary corporate papers are intact? WT
There is one standard registration fee of $7,000 whether for a non-profit or any other company. Even though yours is a non-profit company it is still a company limited by guarantee and all of the charges normally associated with all other companies apply.
Dear Hopeton,
I was just reading your article on registering a business in Jamaica or in the USA. I was also born in Jamaica and currently living in the States. I have become a US citizen but will need to conduct business in Jamaica. Do I need a TRN? I am looking towards my own transportation company in Jamaica. Do I need to register the name of the company even though I will be registering it with JUTA?
I will be in Jamaica next month doing my homework on this. Do you have any additional advice for me going into this venture? TJ
The Office of the Registrar of Companies does not itself require you to be in possession of a Taxpayer Registration Number (TRN). But the Tax Administration Services Depart-ment does have certain requirements along those lines. You will need a TRN unless one of your directors residing locally has a TRN. In the absence of a local director you must have an agent or representative of your local company that has a TRN.
Considering that the new Companies Act of 2004 makes it possible for you to register your company as a single director, you might want to give some consideration to the question of a local representative.
To your second question, yes, you will also need to register the name of your transportation company here in Jamaica even though you are registering with the Jamaica Union of Travellers Association (JUTA). It seems that you have already made contact with JUTA. And your decision to visit here next month is a good one. Nonetheless, we spoke to a director of JUTA, Everard Chaplin who advised as follows:
The first step is to apply to JUTA for membership. Some persons, however, go ahead with the other procedures even before applying to JUTA. The next step is to procure a vehicle that is in excellent condition. It seems that any decent vehicle is acceptable, Toyota Coasters, Hiaces, and luxury cars are very popular. Following those two steps it will be necessary to seek a contract road licence from the Transport Authority of Jamaica.
Next, you are required to take part in a two-week certificate course that is delivered by the Tourism Product Development Company prior to being granted a Tourism licence. Of singular importance also is the requirement to have a location for parking whether this will be at a hotel, airport or some other appropriate site.
We were advised, however, that JUTA is not recruiting at the moment as the organisation is currently overbooked. If you have not registered already however, don't lose heart as there are a number of private transportation companies that have been doing quite well locally without JUTA affiliation. Infinity and Cosmo Transport companies are two that come most readily to mind.
Not unexpectedly, the best spots for tourism are in the tourism bases such as Negril, Montego Bay, and Ocho Rios. But Mr. Chaplin advised that opportunities in Kingston have been encouraging and he was fulsome in his praise for the local private sector which he told us contracts JUTA services for transporting staff members to work and other staff- related functions. Schools and churches generate considerable business in the Kingston Metropolitan Region also. JUTA is a good organisation to join and Mr. Chaplin advises that the organisation sources jobs for its members, with some 285 members in the Kingston chapter alone. Bear in mind that a commission of 10 per cent is charged on jobs sourced by JUTA.
You asked if we had any additional advice for going into this venture. We think it is a great idea. Some great things are happening in tourism in particular and the Jamaican economy is poised for fairly decent and sustained growth for the immediate future. At the worst of times we have always remained fairly upbeat about the country's economic pros-pects for the very simple reason that it is far easier and less stressful to see the glass as half full rather than half empty. There are unfortunately some others who have consistently painted a picture of a country on the road to economic hell.
STRONG INDICATORS
We believe that there are strong indicators for getting into business in Jamaica today. Just a couple of weeks ago for example, the Planning Institute of Jamaica (PIOJ) reported strong performances in the tourism and manufacturing sectors driving the Jamaican economy up by 3.3 per cent during the quarter ended on June 30 this year. Projections are for bauxite earnings to achieve record levels this year (calendar year 2004) and to achieve the US$1 billion mark in 2005. Tourism is also showing very strong growth and is itself at record levels. No less an institution than the Inter-national Monetary Fund reporting on its latest consultation with the Jamaican Govern-ment which ended in August of this year, has given the Government the thumbs-up sign for stabilising the economy and restoring confidence.
CROME FACTOR
At the same time we cannot discount the crime factor which many analysts acknowledge to be the biggest impediment to doing business here at this time. Bear in mind also that tourism opportunities are not restricted to the north coast areas anymore. Americans generally prefer a sand, sun, and sea short term vacation. But Europeans are into longer stay eco-tourism-type vacations. Mr. Chaplin in fact acknowledged that many of these Europeans are into mountain trails, flora and fauna, and just enjoying the natural environment. In that regard tourism has been picking up in the Kingston Metropolitan Region.
So I believe that you are on to a good idea. Best of luck to you.
We close off this week by listing five of the changes that are being introduced into the new Companies Act 2004 that will make the process a lot smoother for new business registration:
A company name can now be reserved for 90 days.
One person can now incorporate a company
The documents required to incorporate a company are the Articles of Incorporation and a Declaration of Compliance. In the past incorporators have laboured under getting a Memorandum of Association and Articles of Association for registration. The new documents are much simpler and do not require a lawyer to prepare.
A company is no longer strictly bound by its objects
An application to restore a company can now be made to the Office of the Registrar of Companies.
Hopeton Morrison is general manager of St. Thomas Cooperative Credit Union Ltd. and lecturer in the School of Business Administration at the University of Technology. Please send comments and questions to: hmorrison@stccu.com
