Doing Business in Guyana

Do you want to expand your business into Guyana or hire employees there? Here are some key things you need to know about a Guyana expansion.

Guyana Economy Overview

Currency

Guyanese Dollar (GYD)

Working hours

40 hours/week

Public/bank holidays

12 public holidays

Capital

Georgetown

Languages

English, Guyanese

Population

1.8 million

Minimum hourly salary

approximately GYD 347 per hour

Tax year

01 Jan-31 Dec

Date format

DD/MM/YYYY

Misclassification penalties

Employers who misclassify employees as independent contractors may face penalties, including fines and back taxes.

Fun fact

Guyana is home to the world’s tallest wooden building, St. George’s Cathedral in Georgetown, which stands at 143 feet tall.

Historically, Guyana was identified as one of the weakest South American economies. However, owing to the recent discovery of large oil and gas reserves, Guyana has enjoyed a surge in economic growth, realizing an impressive average GDP growth of 42.3% over the last three years.

An increased production of oil exports and the revenue generated from these has allowed Guyana to further invest in essential infrastructure development projects, in turn supporting growth across other economic sectors. In addition to natural gasses, Guyana boasts a wealth of desirable minerals, including gold and bauxite, and homes extensive forests spanning 80% of the country.

Of Guyana’s sparse population totaling 800,000 citizens, 90% reside in low-lying areas along the Atlantic coast. This produces a challenge for the Guyanese government in light of climate change and rising sea levels.

Government initiatives to build resilience to climate change impact and strengthen the nation’s defense systems could help to mitigate these risks.

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Overview of Guyana's Economy

Guyana has proudly accrued the title of one of the world’s fastest-growing economies, driven mainly by the discovery of oil and gas reserves in 2019.

Oil and Gas Reserves	Estimated Quantity
Oil	11.2 billion barrels
Natural Gas	17 trillion cubic feet

Double-digit projections of 33.9% are estimated for 2024 and are forecasted to continue as the country’s extractive and oil refining processes strengthen.

Guyana is also rich in other supplies, including sugar, gold, bauxite, shrimp, timber, and rice, which account for 90% of its non-oil exports. Though the economy is dominated by the oil and gas sector, recent government initiatives to diversify the domestic economy have seen substantial investment in the country’s renewable energy potential, including solar and hydropower production plans.

As a founding member of CARICOM (Caribbean Community and Common Market), Guyana benefits from access to the single market with other Caribbean nations.

Factors Attracting Foreign Investment	Details
Abundance of prized resources	Oil, gas, sugar, gold, bauxite, shrimp, timber, rice
Renewable energy potential	Solar and hydropower production plans
Economic integration	Access to the single market with other Caribbean nations (CARICOM)

Taxes

Employer tax: 8.4%

National Insurance Scheme (NIS)

8.4%

Employee tax: 5%

National Insurance Scheme (NIS)

5.6%

Income tax

Gross income

income up to GYD 2,400,000 annually
above GYD 2,400,000 annually

Progressive tax rate

Business Regulation in Guyana

Companies are generally incorporated as one of the following 4 entities: LLCs, partnerships, PLLCs, and sole proprietorships, though the option to incorporate as a PLC is also possible.

For LLCs, a registration flat fee of approximately $G 300 is required to be submitted alongside the necessary documents. This fee is increased to $G 400 for PLCs. Companies must also register a legal office address and reserve a unique name. Businesses operating in certain sectors, such as oil and gas and mining, may also need to procure a license from the relevant authorities.

To establish an LLC, no minimum share capital is required, though companies must have at least 2 shareholders. In the case of PLCs, 2 directors are required. There are no restrictions governing the nationality of shareholders.

Employees in Guyana are protected from discrimination by the Constitution of Prevention of Discrimination Act (1997). Labor laws mandate that employees work a maximum of 40 hours over 5 days. Any time exceeding this amount is considered overtime and must be compensated for at a higher rate.

The statutory minimum wage within Guyana is G$60,147 per month, though workers employed in public service should earn a minimum of G$ 70,000 per month. Employees are entitled to a 15-minute rest break every 4 hours and at least one full day of rest a week.

Companies must also ensure they remain compliant with taxation laws. Companies are required to pay 40% CIT and 14% VAT. In an effort to incentivize FDI, the government offers a variety of tax deductions and exemptions for business operations within Guyana.

Businesses are exempt from paying VAT on plants, machinery, and equipment. Tax deductions are also available for businesses involved in scientific research, and corporations that contribute to important developments and resources within Guyana may be eligible for tax holidays.

Benefits of Doing Business in Guyana

Guyana’s advantageous agricultural potential, renewable energy prospects, and high revenues generated from the oil and gas sector afford businesses looking to expand internationally an exciting opportunity to be a part of one of the world’s fastest-growing economies. With the aim of diversifying its economy, the Guyanese government has taken action to expand the country’s renewable energy sector, promoting investments in solar, wind, and hydropower.

The recently revised Low Carbon Development Strategies (LCDS) clearly delineates measures the country plans to take to increase its green energy and climate change resilience. The implementation of solar panels and microgrids would allow Guyana to fulfill its renewable energy potential.

The exportation of rice and sugar has likewise been a huge contributor to the total GDP generated by the agricultural sector. Accounting for 25% of non-oil exports, the agricultural industry provides huge opportunities for investment.

With large quantities of uninhabited arable land and an abundant water supply, Guyana is poised to become a prime food source for Caribbean countries. Seeking to upgrade current processes, the government is turning to food processing to increase crop exports.

As a result, investors could find profitable prospects within the sector, contributing to the development of necessary infrastructure, processing equipment, and the transportation of products.

Due to the recent economic surge, the population and, therefore, its healthcare needs are likely to dramatically increase. Investment in diagnostic testing, clinical administration, and the training of younger healthcare professionals could help meet the country’s needs and prove particularly profitable in light of recent growth trends.

Business Expansion Options in Guyana

Businesses looking to expand must both choose a business structure that best suits their needs and decide on a method of expansion that allows them to conduct their operations in the most preferable manner. Most businesses will choose to expand through either a subsidiary or branch office.

Guyana Employer of Record (EOR)

Though the Guyana Office for Investment (GO-Invest) describes itself unofficially as a one-stop-shop, proceedings can often take longer than a week. This is for companies seeking assistance navigating the legal environment in Guyana or simply wishing to optimize expansion benefits. Expert services such as PEOs and EORs can be contracted to assist with the incorporation process. PEOs and EORs help companies by managing their human resources, hiring employees, and keeping up to date with changes to legislation that may impact the newly incorporated business. Similar to a Professional Employer Organization (PEO), an EOR hires employees on behalf of a company, managing all employment-related legalities and compliance. The Guyana EOR becomes the official legal employer of your Guyana team. This method is fast and efficient, making it perfect for companies that need to quickly deploy staff on the ground.

Learn more about EOR in Guyana

Guyana Professional Employer Organization (PEO)

Partnering with a PEO allows companies to employ local staff in Guyana without the need to establish a legal entity. This approach is quicker and less expensive, making it ideal for businesses testing the Guyana market or those with limited operations. PEOs handle administrative tasks and ensure that companies comply with Guyana regulations, reducing the complexity and risk associated with hiring local employees.

Subsidiary Incorporation

The most common method of establishing a subsidiary is through the incorporation of an LLC. This business structure requires 1 director and 2 shareholders. The director does not need to be a resident of Guyana and can be an existing shareholder. No minimum share capital is required to incorporate an LLC, but a small registration fee must be paid upon submission of the registry documents.

To reserve a unique name, a fee must be paid to the Companies Registry, and an attorney should obtain a declaration of compliance. Subsidiaries are beneficial as they allow parent companies to expand without being liable for the subsidiary’s financial actions. Their operations can also be tailored to suit Guyanese culture, independent from the parent company’s operations.

Branch Registration

Companies can also decide to incorporate as a branch office. This means that the new company and its actions are viewed as an extension of the parent company thus making the parent company liable for any debts incurred.

To register a foreign branch office, companies are required to pay a registration fee of G$80,000 to G$300,000 depending on the company’s existing share capital. The company is also asked to submit annual audits to the Registrar.

Business Opportunities in Guyana

The country’s recent discovery of significant oil and gas reserves, coupled with its efforts to diversify the economy and promote renewable energy, has created a favorable environment for businesses to thrive across various sectors.

In addition to the lucrative opportunities provided in this sector, an initiative for economic diversification has created new employment and investment prospects across a range of industries, including renewable energy, agriculture, and healthcare.

Business Opportunities	Reasons
Oil and Gas	Significant oil and gas reserves, growing demand for energy products, opportunities for exploration and production
Renewable Energy	Government support for renewable energy projects, abundant solar and hydropower potential, increasing global demand for clean energy
Agribusiness and Food Processing	Rich agricultural resources, growing demand for processed foods, opportunities for value-added production
Mining and Mineral Processing	Deposits of gold, bauxite, and other minerals; increasing demand for raw materials
Tourism and Hospitality	Unique natural attractions, growing interest in eco-tourism and adventure tourism, untapped potential for growth

Further development and financial support are needed to assist Guyana in its effort to increase climate change resilience and mitigate the risks posed by being heavily reliant on exports.

These opportunities, combined with Guyana’s strategic location, access to the Caribbean market through CARICOM, and ongoing efforts to improve the business environment, make it an attractive destination for investors seeking to capitalize on the country’s rapid economic growth and diversification efforts.