Company formation in Jamaica is available as onshore registration and offshore incorporation (IBC’s). In both cases, the registration process is similar and it is comprised of certain mandatory formalities. Therefore, foreign investors starting a business in Jamaica are advised to request professional corporate services from our consultants, who have a reputable experience in this field.
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Taxation for on-shore (regular) companies
If you plan to open a company in Jamaica as an onshore company, meaning a legal entity that engages in business activities with Jamaican entities and customers, it is important to be aware of the tax burden applicable in this case.
One of the main taxes companies must pay, the corporate income tax, is charged at a standard rate of 25% (however, a higher rate, of 33.33%, is imposed on financial institutions). Another common tax charged to local business is the withholding tax, which can be applied to income deriving from dividends, interest, royalties, etc.
Concerning the taxation of dividends, it must be noted that starting with 1st of April 2025, the tax rate has been reduced to 15% from the previous rates of 25% and 33.33%.
Taxation for International Business Corporations
Legal entities operating as IBCs (offshore entities) registered in Jamaica can benefit from a special tax regime, that can significantly reduce the tax burden on such companies, compared to onshore businesses. For instance, the withholding tax on dividends is 0% when such dividends are distributed to investors from CARICOM states.
CARICOM is the acronym for the Caribbean Community, which has signed treaties that promote economic cooperation among the members (at the moment, CARICOM has 15 member states and 5 associated countries).
The tax charged on other types of income (interest, royalties) is subjected to the standard withholding tax, of 15%.
Basic conditions for starting a business in Jamaica
One of the most common ways for starting a company in Jamaica is by incorporating a limited liability company, but other options are available as well. Investors can also set up a partnership or expand on the local market through a branch office.
Provided that they are interested in offshore company setup, the main difference will be that the company will be registered following the Jamaican corporate laws, have its seat in Jamaica, but it will engage in commercial activities with overseas partners and clients. For onshore incorporation, the business can start trading on the local market.
Setting up a business in Jamaica also implies finding a location where the company can develop its activity or where it can receive its official documentation. All these details, along with the information on the beneficial owners of the company, must be registered with the Companies Office of Jamaica. Provided that any changes will appear during the company’s activity, the institution must be notified.
Highlights on starting a business in Jamaica
During the registration process, businessmen must meet certain deadlines, pay various and submit specific registration forms. In the list below, our consultants present some of these legal obligations:
- investors who have found a suitable business name can reserve it for a period of up to 90 days;
- for this, they need to complete the Form 6 and pay a fee of $500 for the name search (for the reservation of the trading name, the institution charges a fee of $3,000);
- when setting up a business in Jamaica, it is required to submit Forms BOR Form A, Form B and Form BRF1, which are used for the identification of the beneficial owners of the company (the obligation is imposed starting with 2018);
- please know that starting a business in Jamaica as a foreigner does not imply any limitations, as foreigners can own 100% of the companies they incorporate, just as local investors.
Good news for investors interested in offshore company formation
As we mentioned in the beginning of this article, Jamaica is also an offshore destination. Local authorities have recently declared (in 2024) that they want to establish an offshore company registry, designed to facilitate the registration of these types of companies here. According to the Jamaican Ministry of Industry Investment & Commerce, the offshore company registry will be available online.
Our consultants invite you to find out further information on the business environment available here, the advantages one can have when starting a business in Jamaica as a foreigner, the reporting obligations, employment regulations and many others. You can also contact our specialists in case you are interested in opening an offshore bank account or if you simply need advice on how to expand on this market.