Over 59,000 new businesses registered from 2020 to date – AG Nandlall

…says growth in commercial sector warrants overhaul of Companies Act

With Guyana’s burgeoning economy, commercial activities have been expanding in the country with more than 59,000 new businesses registered since 2020, thus resulting in the need for the outdated Companies Act to be overhauled to reflect the new realities.
This was shared by Attorney General and Legal Affairs Minister Anil Nandlall, SC, during his weekly programme – Issues in the News. He noted that there has been unprecedented growth in businesses in Guyana over the past four years.
“From 2020 to now, we have had 59,014 new businesses registered at the Deeds and Commercial Registry Authority… For companies, we’ve had 4856 new companies incorporated from 2020 to now at the Deeds and Commercial Registry Authority,” the AG disclosed.
According to Nandlall, this rapid rate of businesses being established and companies being incorporated in Guyana calls for an overhaul of the country’s commercial laws and regulations.
Guyana’s Companies Act was passed in 1991. The Legal Affairs Minister noted the state of Guyana’s economy and its commercial sector at that time was radically different from its current state, that is, one of the fastest growing economies in the world with vibrant commercial activities.
“Definitely, we have to get new laws and new regulatory framework. Of course, the activities themselves in the commercial sector have significantly changed; they have expanded, and there are new activities that were never here before. We have a new oil and gas sector – a multibillion-dollar oil and gas sector that was not here in 1991, certainly. Our Companies Act must take into account these new realities,” Nandlall stated.
Other areas that the local law is silent on and would have to be updated to incorporate include Anti-Money Laundering (AML) regulations as well as laws governing the Guyana stock market.
According to the Legal Affairs Minister, the Government is using a model created by the Caribbean Community (Caricom) in revamping the local Companies Act.
“Caricom has done a model for Caribbean jurisdictions. And once there is Caricom model, we would try to use it as far as possible,” the Attorney General posited.
Based on figures from the AG Chambers, some 6633 businesses were established and 791 companies were incorporated in 2020. In the following year, another 9720 businesses were established and 1199 companies incorporated; while in 2022, a whopping 20,055 businesses were established and 1418 companies incorporated.
Then in 2023, some 22,606 new businesses were established and 1448 companies were incorporated.
During this period, the Deeds and Commercial Registry Authority (DCRA) earned a total of $1.060 million in 2020; $1.551 million in 2021; $1.778 million in 2022; and $2.512 million in 2023.
Meanwhile, the Guyana Government is concluding arrangements for the construction of a new building in Georgetown next year to house the DCRA. Additionally, approximately $800 million has been budgeted this year for a DCRA Esplanade in New Amsterdam, Berbice, Region Six (East Berbice-Corentyne). A plot of land has already been acquired from the Government for this building.
Only last month during his presentation of the 2024 National Budget, Senior Finance Minister Dr Ashni Singh revealed plans to update the country’s Companies Act as part of the Government’s legislative agenda for this year.
He pointed out that this process to review the Companies Act has already started.
The updated legislation, he explained, will follow the Caricom model very closely to produce a more modern legal framework to govern the corporate sector.
Moreover, Dr Singh revealed the drafting of a new Bill to address the outdated Evidence Act, which will take into consideration technological advancements.
Additionally, he said this year will see the debating of the Arbitration Bill, which will facilitate arbitration experts from outside of Guyana conducting arbitration in Guyana. (G-8)