How to Register a Sole Proprietorship (Unincorporated Business) in Guyana

In Guyana, operating as an independent contractor through a sole proprietorship is a practical way to start doing business. The process is relatively simple compared to incorporating a company, making it accessible for individuals who want to begin offering services or trading without significant upfront investment. This structure allows you to operate on your own, retain full control over decisions, and keep administrative requirements to a minimum.

That said, there are also challenges. Sole proprietors assume unlimited liability, meaning personal and business finances are legally the same. This can create risk if the business takes on debt or faces legal claims. Additionally, all tax and compliance obligations fall directly on the individual, which requires discipline in bookkeeping and regular filings.

Despite these considerations, many professionals and small traders choose this route because of its low costs, quick setup, and flexibility. A sole proprietorship is well-suited for freelancers, consultants, and entrepreneurs who want to establish themselves in the market before scaling into more complex structures such as a company.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Guyana?

In Guyana, the unincorporated business run by one individual (without forming a company) is often referred to as a “sole proprietorship” or an “unincorporated business”. In local practice, businesses operating under a name other than the proprietor’s surname must formally register under the Business Names (Registration) Act.

Depending on context, you may also see:

• Sole trader
• Self-employed business
• Independent contractor

These all reflect the same core model: one person legally running a business without forming a company.

How does a sole proprietorship (unincorporated business) work in Guyana?

Sole proprietorship vs. other structures in Guyana

While a sole proprietorship is the simplest way to operate a business in Guyana, it isn’t the only option. Many entrepreneurs choose to incorporate a company, such as a private limited liability company, to access liability protection or attract investors. Below is a comparison of sole proprietorships with incorporated companies in Guyana to help you weigh your options.

Step-by-step guide: How to register a sole proprietorship in Guyana

Step 1: Check your eligibility

Citizens of Guyana aged 18 or older can register under the Business Names (Registration) Act without a minimum capital requirement. Residents with valid identification may also register. Foreign nationals are eligible but must comply with immigration and work permit rules.

Step 2: Choose your business name

You may operate under your own name without registering a separate business name. However, if you want to trade under a distinct name, that trade name must be registered. You can use the “Name Search and Name Reservation” form to confirm availability and avoid conflict.

Step 3: Gather required documents

Typical documents include:

• Completed Business Name Registration Form (available from DCRA)
• Proof of identity (national ID card or passport)
• Proof of residential address
• Business name reservation or approval (if applicable)
• Business activity description
• Sectoral permits or licences (if your activity is regulated)

Step 4: Register with DCRA

You must visit the DCRA’s commercial registry office in person to file your Business Name Registration Form, submit the required supporting documents, and pay the registration fee. Processing usually takes up to three business days. Once approved, you will receive a certificate confirming your registration.

Step 5: Register with the GRA and pay fees

After registering your business name, you must register with the GRA for tax purposes. This includes applying for a Taxpayer Identification Number (TIN) if you don’t already have one and registering as self-employed. As a self-employed individual, you will be required to pay quarterly advance taxes based on your projected income. The GRA provides an online filing system through its eServices portal, which simplifies registration, payments, and returns.

Step 6: Complete post-registration obligations

Once your registration is complete, you will need to meet ongoing compliance obligations. This includes keeping detailed financial records for at least eight years, issuing invoices that comply with GRA requirements (including your TIN), and filing your annual income tax return by 30 April. If you are VAT-registered, you must file VAT returns and remit VAT regularly. Additionally, if you employ staff, you must register them with the National Insurance Scheme (NIS) and remit monthly social security contributions on their behalf.

Financial and tax obligations for sole proprietors in Guyana

You are responsible for:

• Income tax: Sole proprietors in Guyana are taxed as individuals. As of 2025, the rate is 25% on chargeable income up to G$3,120,000 and 35% on income above this threshold. Every self-employed person must register with the GRA and file annual tax returns by 30 April. Advance taxes are paid quarterly (April, July, October, December).
• VAT: The standard VAT rate is 14%. Registration is mandatory if your annual turnover exceeds G$15,000,000. Below that threshold, registration is optional. VAT returns are filed through the GRA eServices portal.
• Social security contributions: If you hire employees, you must register with the NIS and remit both employer and employee contributions each month. As a sole proprietor without employees, contributions are generally voluntary unless you opt into coverage.
• Record-keeping: You must maintain accurate records of income, expenses, and supporting documents. These must be retained for at least eight years, as the GRA may request them during audits.
• Invoicing: All invoices must include your business name (or registered trade name), TIN, invoice number, date, client details, description of goods or services, and any VAT charged. Invoices must be sequentially numbered and stored in your accounting records.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
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• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

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FAQs

What is the minimum capital required to start a sole proprietorship in Guyana?
There is no minimum capital requirement for a sole proprietorship in Guyana.

Do sole proprietors need to register for VAT?
Only if your annual turnover reaches G$15,000,000 or more. Below that threshold, VAT registration is optional.

How much are the standard monthly or annual contributions?
As a sole proprietor without employees, there are no fixed mandatory contributions except taxes. If you hire employees, you must make NIS contributions based on employee wages at statutory rates.

Can a sole proprietor hire employees?
Yes. If you employ staff, you must register with NIS and remit social security contributions.

How long does it take to register as a sole proprietor in Guyana?
Usually about three business days if all documents are in order.

Can foreign nationals register as sole proprietors in Guyana?
Yes, but they must comply with immigration and work permit requirements.

Do sole proprietors need a separate business bank account?
It is not legally required, but it is recommended to keep personal and business finances separate for accounting and compliance clarity.

What happens if I stop working as a sole proprietor?
You should notify the DCRA, deregister your business name, and file a final return with the GRA. You will also need to settle any outstanding taxes.

Are there any government incentives or reduced rates for new sole proprietors?
There are no general incentives, though certain industry-specific tax breaks or concessions may be available depending on the sector.

Can I use Deel as a sole proprietor to get paid by international clients?
Yes. Deel allows sole proprietors and freelancers in Guyana to receive payments from clients worldwide in multiple currencies, with low fees and transparent exchange rates.

Does Deel generate compliant invoices for sole proprietors?
Yes. Deel automatically generates invoices that comply with Guyana’s legal and tax requirements.

Can Deel help me with taxes as a sole proprietor in Guyana?
Yes. Deel provides downloadable payment records and tax reports that make filing returns easier, though it does not replace a professional accountant.

Does Deel offer contracts for freelancers and sole proprietors?
Yes. Deel includes contract templates that are compliant with local laws.

Can I access benefits through Deel as a sole proprietor in Guyana?
Yes. Deel offers optional benefits such as health insurance and retirement savings plans, which are usually only available to employees.