Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Trinidad and Tobago. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Request company name | 4 days | TTD 25 |
| 2 | Statutory declaration before Commissioner of Affidavits | 1 day | TTD 20 |
| 3 | Registration with the Commercial Registry | 4 days | TTD 600 (TT$400 for Form 1; TT$ 40 for Form 31; TT$ 40 for Form 4; TT$ 40 for Form 8;TT$ 40 for Form 27; TT$ 40 for Certificate of Incorporation) |
| * 4 | Make a company seal | 2 days (simultaneous with previous procedure) | TTD 115 |
| 5 | Apply for tax payer identification number | 1 day | no charge |
| * 6 | Apply for Registration as an Employer with National Insurance Board | 1 day (simultaneous with previous procedure) | no charge |
| * 7 | Apply for Registration of Employees with National Insurance Board | 30 days (simultaneous with previous procedure) | no charge |
| * 8 | Register for VAT | 30 days (simultaneous with previous procedure) | no charge |