OVER the last four years, Guyana has witnessed steady increases in businesses and companies being incorporated, due mainly to the country’s push towards modernising its legal and corporate environment.

This was revealed by Attorney-General and Minister of Legal Affairs, Anil Nandlall, during his 2024 budget presentation last week.

He disclosed that in 2020, 6,633 businesses were incorporated and by the end of 2023, the figure stood at 22,606. Regarding companies, 791 were incorporated in 2020 and that number rose to 1, 448 in 2023.

According to the figures provided, 9,720 and 22,055 businesses were incorporated in 2021 and 2022 respectively, while the figures for companies for 2021 and 2022 were 1,199 and 1,418 respectively.

In total 59,014 businesses and 4,856 companies were incorporated during the period 2020 to 2023, reflecting a growing entrepreneurial spirit and economic expansion in the country.

Nandlall provided these figures as he announced a comprehensive overhaul of the country’s commercial laws.

This initiative comes against the backdrop of a remarkable increase in business and company registrations over the past four years since the People’s Progressive Party/Civic (PPP/C) took office, as reported by the Deeds and Commercial Registries Authority (DCRA).

The revenue earned by the DCRA has also seen a noteworthy increase, underscoring the economic vitality and the success of the registry’s operations in facilitating the growth of the commercial sector.

In response to this burgeoning commercial landscape, the government has embarked on a series of legislative reforms aimed at creating a more modern, safe, and transparent business environment.
Key among these reforms is the overhauling of the Companies Act and the Securities Council Act.

The latter is a strategic move to foster a robust stock exchange market in Guyana, with plans to model it after one of the leading markets in the Caribbean, in collaboration with Jamaica.

Moreover, the government is working on amending laws to ensure that contractual instruments can be accepted as collateral for financing by commercial lending agencies.

This is part of a broader effort to make business operations smoother and more secure for entrepreneurs and investors alike.

COMMITTED

Nandlall in his budget speech revealed that a new Business Names Registration Bill has also been drafted, signalling the government’s commitment to streamlining business registration processes and supporting small and medium-sized enterprises (SMEs) in their growth endeavours.

These legislative initiatives represent a pivotal moment for Guyana’s economy, as they aim to align the nation’s legal corporate framework with international standards, promoting greater investor confidence and fostering a conducive environment for business innovation and expansion.

Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh, in his budget presentation, outlined the transformative potential of these reforms.

“Our government’s policy agenda has created more entrepreneurial opportunities than at any other time in our country’s history,” the minister said.

He highlighted the rapid expansion of investment, the creation of employment opportunities, and the increase in disposable income as key drivers for the burgeoning demand for goods and services.

Singh elaborated on the economy’s “strong growth,” offering unprecedented opportunities for small businesses across all sectors.
He highlighted the forthcoming expansion of the energy sector, which is expected to provide more affordable and reliable electricity, thus enabling small businesses to expand and diversify their offerings.
In a detailed account of the government’s support for small businesses, Dr. Singh said: “Over the last three years, this government has recognised the integral role of small businesses in improving livelihoods and employment in the economy.”

He underscored the efforts to overcome structural challenges, cultivate entrepreneurship, strengthen business cooperation, and integrate small businesses into the economy’s mainstream.

SIGNIFICANT INVESTMENTS

Significant investments are being made in industrial estates to create a conducive environment for small business development.

In 2023, $1.2 billion was expended, with an additional $3.3 billion allocated for 2024 to commence further industrial development.

The government’s support extends to financial initiatives, with $450 million allocated for the Small Business Development Fund and $331 million to the Small Business Bureau in 2024.

These funds will facilitate the disbursement of loans and grants, fostering small and micro business development and entrepreneurship.

Training initiatives have also been a focal point, with over 3,500 small business owners benefitting from various programmes in 2023.

Looking ahead to 2024, an additional 2,800 business owners will receive specialised training in key sectors to spur entrepreneurial activity and
enhance village economies.

Additional initiatives slated to assist small businesses include the Electronic Single Window for Trade Transactions, set to launch in 2024, and the construction of the National Quality Infrastructure Laboratory and the Food and Drugs Laboratory.

These projects, with combined budget allocations exceeding $2 billion, are aimed at streamlining trade processes and enhancing trade facilitation.

On the tax front, in this year’s budget, the government has progressively increased the income tax threshold, reaching $100,000 monthly in 2024, a move that will exempt 13,000 individuals from income taxes and boost workers’ disposable income by $4.8 billion.

Minister Singh projected that these measures would inject over $70 billion into the economy, mitigating imported inflation, aiding vulnerable populations, and driving productive activity and job creation.

He reaffirmed that Guyana stands at the threshold of a new commercial and economic era, fuelled by the PPP-led government’s strategic reforms and investments.

These initiatives, he said, are expected to draw more investment and substantially contribute to the country’s prosperity, marking a historic phase of economic revitalisation.