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 Guyana. 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 | Search for company name and reserve proposed name | 1 day | GYD 175 (name search) GYD 800 (reservation) |
| 2 | Obtain declaration of compliance | 2 days | GYD 15000 |
| 3 | Register company with Registrar of Companies | 7 days | GYD 60,000 (fixed registration fee) + GYD 13,000 (fees for filing and certifying copies of documents) |
| 4 | File for tax identification number (TIN) with the Revenue Authority | 1 day | no charge |
| 5 | Register for PAYE | 1 day | no charge |
| * 6 | Register for VAT | 5-7 days (simultaneous with previous procedure) | no charge |
| * 7 | Register employees for social security | 7 days (simultaneous with previous procedure) | no charge |
| * 8 | Make a seal | 1-2 days (simultaneous with previous procedure) | GYD 2000 |