How to Invest in Guyana & Set Up Your Business

Guyana is a rapidly growing economy, largely driven by its oil and gas sector. This English-speaking South American nation experienced a 33 percent GDP growth rate in 2023. Foreign direct investment inflows increased by 47 percent in the first half of 2022, reaching nearly $2 billion. This growth is supported by a developing financial sector, offering improved access to capital.

The government actively welcomes foreign direct investment for economic growth and diversification beyond its primary resource industries. Programs aim to develop the non-oil economy and address national development needs. The Natural Resource Fund, anticipated to exceed $3 billion by the end of 2024, further solidifies the country’s financial foundation.

Key Investment Sectors

Guyana’s economy offers diverse investment opportunities beyond its oil and gas industry. The petroleum sector, with over 11 billion barrels in offshore discoveries, presents prospects in exploration, drilling equipment, and support services. Production is projected to exceed 1.2 million barrels per day by 2027, creating continuous demand for related infrastructure and expertise.

Agriculture is a priority for diversification, with vast arable land and year-round farming potential. Opportunities include fresh produce, livestock, dairy, seafood, and agro-processing for value-added products and regional food security.

The mining sector is rich in gold, bauxite, diamonds, quarry stones, and sand. Opportunities exist for large-scale exploration and improved mineral processing. Gold significantly contributes to the nation’s economic output, and supporting services for mining operations are in demand.

Tourism has potential, recognized by Guyana’s eco-tourism destination status. Pristine rainforests, Kaieteur Falls, and diverse cultural heritage support investments in eco-lodges, heritage tourism, and river-based experiences. The government supports this sector, with plans for increased hotel capacity.

Infrastructure development supports economic growth, encompassing roads, bridges, ports, and energy projects. Investments in gas-to-energy and renewable energy create opportunities for construction and suppliers. Public-private partnerships accelerate these large-scale projects, including commercial and industrial real estate.

Manufacturing is expanding, focusing on agro-processing and light manufacturing, leveraging Guyana’s CARICOM trade location. Opportunities exist for producing value-added goods from local resources. The Information and Communications Technology (ICT) sector is also growing, offering prospects in digital services, BPO centers, and technology-enabled solutions.

Legal and Regulatory Environment

Guyana’s legal framework fosters an attractive environment for foreign investment. The Investment Act of 2004 protects investments and ensures non-discrimination between foreign and domestic investors. This legislation promotes predictability, stability, and transparency, encouraging capital inflows.

The Companies Act of 1991 governs private entities, granting them rights to own and engage in business. The Industries and Aid and Encouragement Act of 1951 also facilitates foreign investment. These laws provide a legal basis for foreign businesses to operate.

The Local Content Act of 2021 targets the oil and gas sector, prioritizing Guyanese nationals and companies in procurement. It sets quotas for local participation and requires foreign investors to partner with local entities for certain services. This ensures domestic sharing of oil industry benefits and promotes local capacity.

Property rights for foreign investors are constitutionally protected, generally affording them the same rights as Guyanese citizens regarding land ownership. Restrictions apply to sensitive areas like agricultural lands or historical sites. For small and medium-scale mining, foreign ownership is restricted, but joint ventures with Guyanese citizens are allowed.

The Guyana Office for Investment (GO-Invest) promotes and facilitates foreign direct investment. GO-Invest provides policy guidance, market intelligence, and assists investors in navigating governmental processes, from inquiries to securing tax concessions. It coordinates with government entities to streamline the investment process.

Government policies encourage foreign direct investment across all sectors, prioritizing agriculture, tourism, agro-processing, light manufacturing, renewable energy, and ICT. Efforts are underway to enhance the business environment through initiatives like a single window system for permits. Investors receive national treatment, though screenings may occur for specific incentives or licenses.

The legal framework ensures the right to transfer funds, including dividends, earnings, and capital, subject to applicable taxes. For disputes, the Investment Act provides avenues like arbitration, Guyanese courts, and access to the International Centre for the Settlement of Investment Disputes (ICSID), of which Guyana is a member.

Preparing for Business Establishment

Foreign investors should consider the appropriate legal structure before formalizing a business in Guyana. The Private Limited Liability Company (PLLC or LLC) is the most common choice due to its flexibility and limited liability. This structure permits 100% foreign ownership, requires a minimum of one director and two shareholders (who need not be Guyanese residents), and has no minimum share capital.

An established foreign company can register a branch office, known as an External Company, operating under its existing corporate structure. This option offers continuity but involves specific additional documentation. For smaller ventures, a sole proprietorship provides simplicity in setup but carries unlimited personal liability.

After selecting the business entity, gather necessary information. For a PLLC, this includes a unique, reserved company name, intended business activities, the registered office address in Guyana, and comprehensive details for all directors and shareholders. This includes their full names, addresses, occupations, and legal eligibility.

Supporting documents are essential for registration. A notarized copy of each director’s and shareholder’s foreign passport or national identification is needed, along with proof of residential address. The Articles of Incorporation, outlining the company’s structure and objectives, must be prepared. A Declaration of Compliance, issued by a Guyanese attorney-at-law, is also mandatory, confirming adherence to local formation rules.

For external companies, additional documents include certified copies of the parent company’s corporate instruments and a registered Power of Attorney. A statutory declaration from directors and the attorney-at-law attesting to information accuracy is also necessary. Engaging a local attorney is advisable to ensure compliance.

Official registration forms are obtained from the Deeds and Commercial Registries Authority (DCRA) or the Small Business Bureau. All required supporting documents must be attached for timely processing.

Formalizing Your Business Entity

With all required information and documents prepared, formalizing your business entity in Guyana can proceed. The Deeds and Commercial Registries Authority (DCRA) is the primary agency for company incorporation and business name registration. Submissions are made at DCRA offices in Georgetown, Essequibo, or Berbice. Some permits, like housing and planning approvals, can be processed through the online Single Window Application System (SWAS).

Registration fees vary by business structure. For a new Private Limited Liability Company, the fee is approximately G$60,000, totaling around G$63,550 with additional charges. Registering an external company costs G$80,000 to G$300,000, determined by share capital. For sole proprietorships or partnerships, a G$5,000 fee applies for business name registration.

Processing timelines for registration are efficient. For company incorporation, the Certificate of Incorporation is typically available within three business days. Business name registrations also conclude within three business days, leading to the official registration certificate. The Registrar of Companies publishes the company’s incorporation in the Official Gazette.

After receiving the core registration certificate, obtain a Tax Identification Number (TIN) from the Guyana Revenue Authority, often processed within one day. Subsequent registrations for Value Added Tax (VAT) and the National Insurance Scheme (NIS) take one to two weeks each, leading to compliance certificates. Some online portals, like SWAS, allow applicants to monitor their application status.

Financial and Taxation Aspects

Understanding Guyana’s financial and taxation landscape is essential for foreign investors. Corporate income tax rates vary by business activity. Commercial companies, including those in trading, telecommunications, banking, or insurance, are taxed at 40% of profits or 2% of turnover, whichever is higher. Non-commercial companies, such as manufacturers and service providers, face a 25% rate. Resident companies are taxed on worldwide income, while non-resident companies are taxed on income derived from Guyana.

Withholding taxes apply to various payments made to non-residents. A 20% withholding tax is levied on dividends, interest, royalties, management fees, and deemed remittances of branch profits. A 10% withholding tax applies to payments for services performed in Guyana by non-resident companies. Double Taxation Treaties with several countries can reduce these rates.

Guyana promotes foreign investment through incentives and tax holidays. These include tax exemptions, accelerated depreciation, and duty-free concessions on machinery and equipment. Incentives are granted for pioneering projects, new economic activities, and regional investments. Tax holidays are negotiated based on proposals submitted to GO-Invest, considering investment level and job creation.

Profit repatriation is unrestricted, allowing full transfer of capital, profits, and dividends, provided all applicable taxes are paid. There are no limits on foreign currency acquisition or repatriation, and both residents and non-residents access foreign exchange markets. The Bank of Guyana monitors foreign currency transactions.

Foreign investors can establish bank accounts in Guyanese Dollars and other convertible currencies. Opening a corporate bank account requires detailed documentation, including business registration, tax identification, incorporation documents, and identification for directors and beneficial owners. The Guyanese Dollar is the official currency. Businesses cannot unilaterally insist on foreign currency payments for local transactions without government permission.