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How to Do Business In Guyana?




Doing business in Guyana is characterized by a rapidly expanding, oil-fueled economy, which presents both immense opportunities and significant regulatory and logistical challenges. The country is actively encouraging foreign direct investment (FDI) to diversify the economy and build supporting infrastructure.

Here is a guide to the key aspects of starting a business in Guyana.


I. Business Registration and Legal Structures

The primary registration authority in Guyana is the Deeds and Commercial Registries Authority (DCRA), which manages the commercial registry.

Common Business Entities

Legal EntityNotes and Requirements
Private Limited Company (LTD)The most common choice for foreign investors. Requires a minimum of one shareholder and one director (who can be the same person). No minimum share capital requirement.
External CompanyFor foreign companies already incorporated elsewhere. Must register to operate in Guyana if it maintains a local office, signs multiple local contracts, or uses assets in the country to generate profit. Requires appointing a resident Power of Attorney/Agent.
Sole Proprietorship/PartnershipEasier to register under the Business Names (Registration) Act, but the owner/partners have unlimited personal liability.

Steps for Company Registration (LTD)

  1. Name Search & Reservation: Submit an application to the DCRA to ensure your proposed company name is unique and reserve it.
  2. Draft Incorporation Documents: Prepare the Articles of Incorporation, which detail the company’s structure, share capital, registered office address, and business objectives.
  3. Appoint Local Legal Counsel: A declaration of compliance must be signed by a locally registered attorney, certifying that all legal requirements have been met.
  4. Registration with DCRA: Submit the Articles of Incorporation, Notice of Director, Consent to Act as Director, and payment of the prescribed fee to the DCRA. Registration typically takes about 3-7 working days.
  5. Obtain Tax Identification Number (TIN): Register the company with the Guyana Revenue Authority (GRA) and apply for a company TIN.
  6. VAT Registration (If Applicable): If the company’s annual taxable supplies are expected to exceed the set threshold, it must register for Value Added Tax (VAT) with the GRA.
  7. National Insurance Scheme (NIS) Registration: The company must register as an employer with the National Insurance Scheme for social security contributions.
  8. Obtain Licenses and Permits: Depending on the sector (e.g., oil & gas, mining, forestry), you will need specific operational licenses from the relevant ministry or regulatory body (e.g., EPA for environmental permits).

II. Key Investment Sectors and Opportunities

Guyana has one of the fastest-growing economies in the world, largely driven by offshore oil discoveries. The government is focused on diversifying this growth into other key sectors.

SectorOpportunities
Oil & Gas Support ServicesThe dominant sector. Opportunities exist in logistics, specialized technical services, equipment supply, training, maintenance, and fabrication.
Infrastructure & ConstructionMassive public and private spending on roads, bridges (like the new Demerara Harbour Bridge), deep water ports, hospitals, and housing to support the oil boom.
EnergyMajor focus on the Gas-to-Energy project to lower power costs. Investment is encouraged in renewable energy (solar, wind, hydropower) to transition away from heavy fuel oil.
Agriculture & Agro-ProcessingGuyana aims to be the “breadbasket of the Caribbean.” Opportunities in large-scale farming, livestock, aquaculture, and value-added food processing to enhance regional food security.
Tourism & HospitalityDeveloping eco-tourism, resorts, and supporting infrastructure (hotels, transportation) to capitalize on the country’s unique natural environment (e.g., rainforests, Kaieteur Falls).

Local Content Requirements

The Local Content Act (LCA) of 2021 establishes mandatory thresholds for local participation in the oil and gas sector. Foreign firms operating in this industry must meet quotas for:

  • Hiring Guyanese: For personnel at various levels of management and technical expertise.
  • Sourcing Local Goods and Services: Specific targets (ranging from 5% to 100%) for using local materials and services, such as ground transportation, catering, accounting, and legal services.

III. Taxation and Incentives

Guyana’s corporate tax system uses differentiated rates based on the nature of the company’s activity.

Corporate Tax Rates

Company TypeCorporate Income Tax Rate
Commercial Companies (Trading, Banking, Insurance, Telecommunications)40% (Telecommunication companies are 45%)
Other Companies (Non-Commercial, e.g., Manufacturing, Services)25%
Small Businesses (Registered with the Small Business Bureau)25%
  • Minimum Tax: Commercial companies (excluding insurance) may be subject to a Minimum Corporation Tax (MCT) of 2% of turnover if it exceeds the calculated tax at the normal rate.
  • Value Added Tax (VAT): The standard VAT rate is 14%.

Investment Incentives

The Guyana Office for Investment (GO-Invest) facilitates various tax concessions to attract FDI, particularly in priority sectors. These can include:

  • Tax Holidays (exemption from CIT for a set period).
  • Reduced Corporate Tax Rates.
  • Exemption from Custom Duties and VAT on capital goods, machinery, and equipment imported for specific projects in sectors like agriculture, manufacturing, and tourism.

IV. Practical Considerations

  • Due Diligence: The business environment is still developing. Thorough due diligence on potential local partners, supply chains, and regulatory compliance is strongly advised.
  • Work Permits and Visas: Foreign employees require a Work Permit and an Employment Visa. The process can take time and requires compliance certificates from the employer.
  • Regulatory Complexity: While the government aims to streamline processes, navigating multiple agencies for permits and licenses can be complex. Engaging local legal and accounting professionals is highly recommended.