Guide: Doing Business in Jamaica
Jamaica Guide prepared by Ramsay & Partners, Attorneys-at-Law
Ready for Business
In Jamaica, there are major efforts underway to accommodate more international players seeking to invest, do business, or even move their operations to a pro-business destination. Whether you have an existing opportunity, or you are considering your options, here is information you will find useful.
POPULATION
Jamaica has a population of approximately 2.7 million, making it the second-largest market in the Caribbean Community.
LANGUAGE
English is the official language of Jamaica.
CURRENCY
The national currency is the Jamaican dollar.
GEOGRAPHY
The third largest Anglophone country in the Americas, Jamaica is 236km (146 miles) long and 82km (51 miles) wide.
THE ECONOMY
Jamaica operates as a mixed free-market economy, with state enterprises as well as private sector businesses.
INDUSTRY SECTORS
Sectors poised for rapid development include agriculture, mining, the creative industries, manufacturing, tourism and information communication technology (ICT).
FINANCIAL INSTITUTIONS
Commercial banks, credit unions and building societies are involved in the great majority of financial transactions in all sectors of the economy. Building societies handle business transactions and are very similar in their operations to the commercial banks but tend to specialise in private savings, personal loans and the financing of house purchases.
STOCK MARKET
Jamaica has a fully functioning stock market. The Jamaican Stock Exchange (JSE) has been rated as one of the best in the world.
FOREIGN-OWNED COMPANIES
Once established in Jamaica, foreign-owned companies are regarded in the same way as their domestic counterparts. With a few exceptions, foreign companies establishing Jamaica based subsidiaries generally encounter no special nationality requirements for directors or shareholders. The Jamaica imposes very few restrictions on foreign ownership and there are no limitations on the free flow of capital.
REASONS FOR INVESTING IN JAMAICA
Jamaica’s current goal is to transform the Jamaican business landscape to accommodate more international players seeking to locate their operations to a pro-business destination. The advantages of investment in Jamaica are:
- Free movement of capital, profits and dividends;
- Well-developed infrastructure with world class highways and seaports;
- The third largest English-speaking country in the Western hemisphere
- No restrictions on foreign investors borrowing in local and foreign currency;
- Excellent international telecommunication and internet linkage;
- Relief of tax burdens via double taxation agreements with countries such as Canada, the United States of America, the United Kingdom, Sweden, among others;
- Ranked has having the number 1 transhipment port in the Region;
- Located within 4 hour flight radius of 500 million people with two international airports.
REGULATORY FRAMEWORK
When setting up a business in Jamaica it is important that you are familiar with:
- The tax, national insurance and general consumption tax (GCT) systems
- The legal system, and what laws and regulations may affect your business
- Health and safety regulations
- Environmental considerations
- Employment procedures
- Licensing
- Immigration (for example, status of staff)
- Intellectual property, including patents, copyright and trademarks.
SETTING UP A BUSINESS IN JAMAICA
Businesses entities can take on a number of legal forms in Jamaica. The following are the forms through which a business can be conducted:
- Private companies limited by shares
- Public companies limited by shares
- Companies limited by guarantee (either with or without share capital)
- Companies having unlimited liability
- Branches of foreign corporations (overseas companies)
- Partnerships – general or limited
- Joint Ventures
- Sole proprietorships.
All companies registered in Jamaica are governed by the Companies Act, 2004 and the 2018 amendment. Ministerial responsibility for the provisions of this Act is vested in the Ministry of Industry Investment and Commerce.
FORMATION PROCEDURES FOR PRIVATE AND PUBLIC COMPANIES
Incorporation of a Company in Jamaica involves filing a “BRF 1” Form as well as the Company’s Articles of Incorporation. The application for Taxpayer’s Registration Number (TRN), National Insurance Scheme (NIS), General Consumption Tax (GCT), Tax Compliance Certificate (TCC), HEART- NTA and National Housing Trust (NHT) can be made at the same time of filing the BRF 1 Form.
OVERSEAS COMPANIES
Companies that are incorporated in a foreign jurisdiction but wish to carry on business in Jamaica without incorporating, must be registered under the Companies Act of Jamaica. The business name must be registered to ensure that it does not conflict with a prior existing business name. A certified translated copy of the Articles of Incorporation must also be filed.
FILING REQUIREMENTS
Overseas companies in Jamaica must file an annual balance sheet and profit and loss accounts, a statement showing the company’s assets situated in Jamaica and an auditor’s report on both the statement of operations and statement of assets.
WORKING CONDITIONS
Non- residents of Jamaica are required to obtain the permission of the Ministry of Labour prior to engaging in any gainful venture or form of employment.
An Attorney-at-Law can help you start doing business in Jamaica by:
- Incorporating your company
- Obtaining a taxpayer registration number
- Registering your company (if overseas company)
- Obtaining work permits/visas
- Drafting contracts of employment and employee policies/handbooks
- Giving advice on tax payment and exemptions
- Giving advice on health and safety requirements
- Obtaining licenses for specific sectors
- Meeting annual filing criteria
