COMPLIANCEANDYOULegalformsofbusiness

Yourobligationvariesaccordingtowhetheryouareacompany,businessor
industrialandprovidentsociety.Somepersonsarenotawareofthedistinction
betweenacompanyandabusiness.Themajordifferencesareasfollows:

Acompanyisalegalperson,thoughartificialinnature,separatefromits
memberswhereasabusinessdoesnothaveaseparatelegalidentityfrom
its members. In the case of a business therefore, there is no separate
existencedistinctfromitsmembers.
Acompanymayberegisteredwiththeliabilityofthememberslimitedby
the amount of their unpaid share capital or by guarantee whereas the
personal property of the owners of the business may be used to set off
anyclaimsmadeinacourtoflaw.Theownersofthebusinessareliable
forthecontractualliabilitiesandobligationsofthebusiness.
A company has perpetual succession meaning that a change in the
membership does not affect the existence of the company whereas a
business does not enjoy this perpetual succession. For example, in the
case of a partnership, which is one form of business registration, a
changeinthemembershipaffectsthepartnership.
Fortheformationofacompany,twoitemsmustbe
submitted.Theseare
1. TheBusinessRegistrationForm(BRF1)
2. TheArticlesofIncorporation,whichsetsoutamongotherthings,
thecorebusinessofthecompanyandtheinternalrulesgoverning
thecompany.
Whereapplicable,arrivaldocumentsforTCCapplicants(eg.BillofLading)
andproofofcertificationofcertainprofessionalsmustalsobesubmitted.
Additionally,atleastoneresponsibleofficerofalllocalcompaniesmust
possessaTaxpayerRegistrationNumber.
Fortheformationofabusiness,threeitemsmustbe
submitted.Theseare
1. TheBusinessRegistrationForm(BRF1)
2. AnoriginalgovernmentissuedidentificationofthePrincipal
Proprietor
3. Adocumentverifyinghis/hercurrentplaceofaddress(Verification
canbemadebywayofdriverslicense,BankStatementorutility
bill).
Avalidcertificationisrequiredtobesubmittedwithapplicationforcertain
professionals such as Engineers, Medical Doctors, Pharmacists, Dentist,
Lawyers, etc. Additionally, all proprietors must possess a Taxpayer
Registration Number and non Caricom Nationals must submit a work
permitifthereisnoproofofJamaicanCitizenship.
Thepropertyofthebusinessiseitherownedbyonepersonwhereitisa
soleproprietorshiporjointlybythepartnerswhereitisapartnership.The
property owned by the company belongs to the company and not the
members.
The directors of a company are responsible for the management of the
company and the members of the company are not involved in the
managementofthebusinesswhereastheownersofabusinessareinfact
inmostcasesthemanagersofthebusiness.
A company may create floating charges over its assets whereas a
businesscannot.Theownersofthebusinessmayhowevercreatecharges
overassetssuchasland,vehiclesandequipment.
AbusinessmaybeclosedbynoticeinwritingtotheCompaniesOfficeof
Jamaica whereas a company, which has assets or liabilities, must be
woundupinaccordancewiththeCompaniesAct.Whereacompanyhas
no assets or liabilities it must be removed in accordance with
theCompaniesAct.
TheCompaniesActprohibitstheregistrationofanytwocompanieswith
thesamenametherebyprotectingacompanysnamewhereasthereisno
similarprovisionintheRegistrationofBusinessNamesAct.
A company can sue and be sued in its own name whereas a business
cannotdothis.
AcompanyisregisteredundertheCompaniesActwhereasabusinessis
registeredundertheRegistrationofBusinessNamesAct.
Companies must register under the Companies Act whereas not all
persons operating a business need register under the Registration of
BusinessNamesAct.

COMPLIANCEUNDERTHECOMPANIESACT2004
During a Companys life, it is be required to file certain documents to ensure
compliance with the Companies Act.Each of these documents will attract late
filingfeesiftheyarenotfiledwithinthetimespecifiedbyAct.Continueddefault
infilingmayleadtoprosecution,suitordisqualificationofthecompanysofficers.
ParticularsofDirectorsoranychangetherein(Form23)
When?hisdocumentmustbesubmittedtotheCompaniesOfficeofJamaica
withinfourteen(14)daysofanychangeintheParticularsoftheDirectors.Since
January2,2014theParticularsoftheFirstDirectorsaresetoutintheBRF1
whichmustbesubmittedasapartoftheincorporationpackage.
Why?ItisimportantthattheparticularsofDirectorsofacompanybefiledwith
theCompaniesOfficebecause

i)Personsdoingbusinesswiththecompanycanascertainwhois
capableofenteringintotransactionsonbehalfofthecompany.
ii)Theliabilityofofficersofthecompanyatvariouspointsin
timecanbedetermined
iii)Personswishingtocontactthecompanywillbeableto
identifythepersonstowhomcommunicationstothe
companymaybeaddressed.
NoticeofAppointmentofCompanySecretary(Form20)
When?ThisdocumentmustbesubmittedtotheCompaniesOfficeofJamaica
withinfourteen(14)daysofanychangeintheCompanySecretary.Since
January2,2014theParticularsoftheFirstCompanySecretaryaresetoutinthe
BRF1whichmustbesubmittedasapartoftheincorporationpackage.
Why?ItisimportantthattheNoticeofAppointmentorChangeofCompany
SecretaryofacompanybefiledwiththeCompaniesOfficebecause
i)TheSecretaryofaCompanyisanofficerofthecompany,whose
appointmentmustformapartofthecompanysrecords.
ii)Theliabilityofofficersofthecompanyatvariousperiodsof
timecanbedetermined.
iii)Personswishingtocontactthecompanywillbeableto
identifythepersonstowhomcommunicationstothe
companymaybeaddressed.

Whocanfile?ThisdocumentmustbesignedbyanexistingDirector/
AuthorizedOfficialoftheCompany.

RegisteredOfficeNotice(Form17)
When?Thisdocumentmustbefiledwithinfourteendaysofanychangesinthe
addressoftheRegisteredOffice.SinceJanuary2,2014theinitialRegistered
OfficeaddressofthecompanyissetoutintheFormBRF1whichisapartofthe
incorporationpackage.
Why?ItisimportantthattheRegisteredOfficeNoticeofacompanybefiledwith
theCompaniesOfficebecause
i)Interestedinvestorsandmembersofthepubliccanfindoutwhere
tolocateand/orcontactthecompany
ii)AllcommunicationsandnoticesshouldbesenttotheRegistered
Officeofthecompany.Infact,acompanyisdeemedtohave
receivedanycorrespondencewhichissentordeliveredtothe
addressrecordedattheCompaniesOfficeofJamaicaasthe
RegisteredOfficeofaCompany
AnnualReturns(Form19AorForm19B)
When?Thisdocumentshouldbemadeuptoadateonorbeforetheanniversary
oftheincorporationofacompanyifthecompanyisfilingreturnsforthefirst
time.Theannualreturnsshouldbemadeuptoadateonorbeforethe
anniversaryofthelastreturnfiledinthecasewherepreviousreturnshavebeen
filed.Thecompanyhas28daysfromthedatetowhichthereturnismadeup
beforethereturnbecomesoverdue.
Why?ItisimportantthattheAnnualReturnsofacompanybefiledwiththe
CompaniesOfficebecause
i)TheAnnualreturnsareimportantinidentifyingchangesinthe
ownershipormanagementofacompanyduringtheperiodfor
whichthereturnismade
ii) These returns are also important in identifying changes in the
value of shares and share transactions during the period for which
thereturnismade.

*CompanieslimitedbyGuaranteemustfileFinancialStatementsalongwiththeir
AnnualReturns
AllPublicCompaniesandotherCompanies,whichmeetcertaincriteriasetoutby
theActarealsorequiredtofileAuditedFinancialStatementsalongwiththeir
AnnualReturns
AllCompanieswhosenamesappearontheregisterofcompaniesarerequiredto
comply with the statutory obligations under the Companies Act whether or not
the company is actively doing business. Where a company has stopped doing
businessandwishestoberemovedfromtheregister,theprocedureforremoval
maybefollowed.
REMOVALUNDERTHECOMPANIESACT2004
REMOVALBYREQUEST
Acompany,whichhasceasedtradingandhasnoassetsorliabilitiesmayrequest
removalundertheCompaniesAct.Inordertodothis,thecompanywillbe
requiredtodothefollowing:

1.Fileanyoutstandingdocuments(AnnualReturns,noticesetc.,tobring
thecompanysfilingsuptodate)
2. Submit a request for removal in writing to the Companies Office of
Jamaica.ThislettermustbesignedbyaDirectororAuthorizedOfficial
ofthecompanyandmustexpresslystatethatthecompanywishestobe
removedfromtheregisterofcompanies.
3.SubmitaletterfromanAuditor/CharteredAccountantcertifyingthat
theCompanyhasneitherassetsnorliabilities.

Theapplicablefeefortheremoval(inadditiontothefeesforfilingthe
outstandingdocuments)consistsoftheprocessingfeefortheremoval,anda
chargeforadvertisingtheremovalinthenewspaper.

AcompanywhichstillasassetsorliabilitiesmustproceedbywayofLiquidation.
REMOVALBYTHEREGISTRAROFCOMPANIES

1.TheCompaniesAct2004empowerstheCompaniesOfficeofJamaicato
strikefromtheRegisterofLimitedCompaniesanyCompanywhereshe
hasreasonablecausetobelievethatthecompanyisnotcarryingon
businessorinoperation.
IntheeventthatacompanyisstruckofftheRegisterwhileitisstillcarryingon
business or owns property, the assets of the Company will gobonavacantia to
the Crown. That is, The Government of Jamaica becomes the owner of the
property.
If a company is struck of the Register while it owns property or is carrying on
Business,itmaywithinTwenty(20)yearsofbeingstruckoff,requestrestoration
to the register. Such a company will be required to satisfy the Registrar of
Companiesthat

i)Thecompanywasatthetimeofstrikingoff,carryingonbusiness
orinoperation
Or
ii)ThereisjustcausefortheCompanytoberestoredtotheRegister

ACompanyseekingrestorationwouldberequiredtobearthecostofrestoration
aswellaspaymenttoupdateitsrecords
N.B.ChangingtheNameofaCompanyortransferringownershipoftheCompany
orthedeathofthemembersdoesnotautomaticallyresultinclosureofthe
Company
COMPLIANCEUNDERTHEBUSINESSNAMESACT
PersonsregisteredunderthisActarerequiredtorenewtheirregistration
everythreeyearsandtoinformtheRegistrarintheeventofanychanges
tothebusiness(e.g.theaddress).
COMPLIANCEUNDERTHEINDUSTRIALANDPROVIDENTSOCIETIESACT
AnindustrialAndProvidentSocietyisexpectedtofileAnnualreturn(Form
K)alongwithfinancialstatementseachyear.