When you begin your global expansion, you may consider establishing a subsidiary. These entities make it easier to conduct business internationally, but the registration process can take more time and money than you can afford. At Globalization Partners, we act as your subsidiary to get your company started in days rather than weeks.
How to Set Up a Guyana Subsidiary
While Guyana offers a few different company types, most international investors opt for a limited liability company. This type of company doesn’t have a minimum share capital requirement, but it does require at least one director and at least two shareholders.
The first step in the subsidiary registration process is reserving your company name with the Companies Registry. You’ll also need to obtain a declaration of compliance from an attorney. This document confirms that you and your board meet all requirements outlined in the Companies Act.
Once you have an official declaration, you can register your company with the Registrar of Companies. For this step, you need to provide the following:
- Declaration of compliance
- Articles of incorporation
- Proof of a registered office
- Consent of directors and secretary
Once you’ve received your registration from the Registrar of Companies, you can register with all necessary departments, including the Revenue Authority and National Insurance Scheme (NIS). This step ensures you have a tax ID for filing income taxes and the ability to contribute to social security as an employer.
Guyana Subsidiary Laws
The two critical aspects of subsidiary ownership are your board of directors and articles of incorporation. Before you start your registration process, you should have these details squared away.
A limited liability company requires at least one director. This director doesn’t need to be a resident of Guyana, and they can be one of your shareholders if you’d prefer. Once you establish your director or board of directors, you need to create your articles of incorporation.
This official document needs to include the bylaws of your company, or how it will operate. These laws include how you elect directors and manage finances. You’ll submit this document to the Registrar of Companies, and they’ll issue a certificate of incorporation in the Official Gazette.
Benefits of Setting Up a Guyana Subsidiary
While establishing a subsidiary is an extensive process, it does offer a few benefits. Once you’ve registered your business in the country, your office will be a separate entity from your parent company. This status means your subsidiary can embrace the local environment and develop its own identity and business culture. A subsidiary also has separate liability from your parent company. If it encounters any legal trouble, your headquarters won’t be responsible.
When you turn to Globalization Partners, you can completely sidestep the subsidiary process. With our services, we hire your employees through our entity in-country. You can enjoy the same benefits of having an established entity in Guyana without expending your resources. All liability shifts to our shoulders, and we make sure employment terms are fair and legal.
Other Important Considerations
Your two essential resources for establishing a subsidiary are time and money. As you navigate the registration process, you’re responsible for various fees. You have to pay to reserve your company name, hire a lawyer for a declaration of compliance, and file for registration.
The formal registration takes about two weeks, but this timeline doesn’t factor in establishing a board of directors and writing your articles of incorporation. You also need to find a property to conduct business on. This process could take a few weeks or a few months, depending on the real estate market at the time.
Throughout the expansion process, you may be flying back and forth between your parent company and your new subsidiary location. The traveling could take up significant time in your schedule, while the plane tickets will add to your overall subsidiary costs.
Let Globalization Partners Help With Your Expansion
Globalization Partners helps you avoid the extensive subsidiary process — and we offer many other international expansion support services, too. Reach out today to learn more.