How to Do Business In Trinidad and Tobago?

Doing business in Trinidad and Tobago involves formal company registration, understanding the unique tax regime, and navigating a business culture that prioritizes personal relationships and hierarchy.

1. Company Registration and Legal Structure

Foreign investors typically choose one of three main structures, with the process overseen by the Companies Registry (part of the Ministry of Attorney General and Legal Affairs):

• Private Limited Liability Company (Ltd.): The most common choice. It requires at least two directors and two shareholders, one of whom must have a local registered address
• Public Limited Liability Company (PLC): For companies intending to raise capital publicly.
• External Company (Branch): Allows a foreign company to operate locally without full incorporation, but requires a local representative.

The Registration Process:

1. Companies Registry Account (CRA): All individuals/entities involved must first create an account on the Companies Registry platform.
2. Name Reservation: Reserve a unique company name with the Registry (an online service is available). The fee is approximately TT$25.
3. File Documents: File the required documents, which for a Private Limited Company include the Articles of Incorporation (Form 1), Notice of Directors (Form 8), and Notice of Registered Office (Form 4). Foreign documents may require certified translations.
4. Fee Payment: The incorporation fee for a local subsidiary is approximately TT$560.00.
5. Tax Registration: Register for a Board of Inland Revenue (BIR) File Number and PAYE (Pay As You Earn) Number with the Inland Revenue Division.

You can initiate many of these steps online via the government’s TTBizLink platform.

2. Taxation and Compliance

Trinidad and Tobago offers a generally competitive tax environment.

• Corporate Tax Rate: 25% (Standard rate). Companies engaged in the sale of petroleum products are taxed at a higher rate.
• Value Added Tax (VAT): The standard rate is 12.5%.
  • Registration is mandatory for individuals or businesses with commercial supplies exceeding TT$600,000 over a 12-month period.
  • Certain essential goods and exported goods/services are zero-rated.
• Other Taxes & Levies: Businesses must also pay a Business Levy and a Green Fund Levy on gross income, regardless of profitability.
• Social Security: Employers and employees contribute to the National Insurance (Social Security) and a Health Surcharge.
• Annual Compliance: Companies must file an annual return and meet statutory requirements under the Companies Act.

3. Key Investment Sectors

The economy is heavily industrialized and dominated by the energy sector, but the government actively promotes foreign investment in non-energy sectors.

4. Business Culture and Etiquette

Personal relationships are paramount, and the business environment is more hierarchical than in many Western countries.

• Relationships: Businesspeople are friendly and place great value on personal contact. Be prepared to invest time in building rapport and trust; decisions are often based on the personal relationship with the decision-maker.
• Hierarchy: Leadership is rooted in hierarchy. Defer to the person with the most authority in a meeting, as they are typically the final decision-maker.
• Punctuality and Time: While general workplace etiquette demands timeliness, the overall culture can be fluid-time. Deadlines should be clearly set and reiterated, but remain flexible.
• Dress Code: Dress is Western in style and generally formal, particularly for initial meetings. Suits are standard for men, or the local “shirt jack” (a loose-fitting, formal shirt worn outside the trousers).
• Communication: English is the official language. Start meetings with small talk before addressing business, and avoid aggressive or high-pressure sales tactics.