GUIDE: DOING BUSINESS IN JAMAICA
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
Shipping and Logistics
SHIPPING AND LOGISTICS
Jamaica is strategically located at the intersection of several major shipping lines. It is region's number one transhipment port, and the top 20 in the world. The Government is spearheading a multi-billion dollar global logistics hub project, including expanding the terminal capacity of Kingston Container Port from 2.8 million to 3.2 million TEU per year. The country has a well-developed infrastructure with world class highways to support the shipping infrastructure.
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CONSTRUCTION
Jamaica has a booming construction sector, burgeoned by development in infrastructure, tourism, energy, and mining. The Government and private companies have invested billions in projects across the country. There remains a great demand for housing solutions, hotel projects, roads and highways, factories, and energy solutions.
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Real Estate and Construction
TOURISM
Tourism continues to be an exciting and fast growing sector in Jamaica. Over 3.5 million tourists visit the island on by plane, boat, and cruise ship. There are opportunities for hoteliers and attractions, but also for necessary services and products needed by hotels and the sector. These include construction, agriculture, supply chain management, and consulting.
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AVIATION
Jamaica has an exceptional track record of aviation safety. The industry continues to develop, boosted by tourism and Jamaica's prime location at the center of the Caribbean, between North and South America. Major development projects are underway at the two primary international airports in Kingston and Montego Bay, which serve almost 2 million passengers annually. A third international airport serves the resort town of Ocho Rios, and currently caters to private jets and small carriers. Plans have been tabled for the development of a third international airport dedicated to cargo as part of the Logistics Hub initiative.
Aviation
MUSIC AND ARTS
Jamaica is the home of world renowned reggae music. The island's musical icons have sold millions of records worldwide, and have gained universal appeal. There are several music recording, mixing, and mastering companies that work with musicians. There are also several international music events that attract thousands of locals and tourists. Other forms of music include dancehall, classical music, and folk music. Jamaica also boasts an active theatre industry, with plays being performed across the country and internationally. Poetry and other art forms are also very active, particularly in the capital city, Kingston.
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