Growth & Jobs | More entrepreneurs choosing company status

SHELLIE LEON, CEO and registrar (acting interim) of the Companies of Jamaica (COJ), is encouraged by the commitment of entrepreneurs to positioning their businesses for continuity and expansion as seen in an 11 per cent increase in the number of companies incorporated for 2022.

Data from the COJ shows that 5,412 new limited liability companies were incorporated in 2022, making it a record year for the number of new entrants being added to the Register of Companies in any given year. However, new sole proprietorship and partnership business registration declined by seven per cent, with a total of 15,701 business names being added to the Register of Business Names. Additionally, the number of businesses seeking renewal increased by more than six per cent for 2022 when compared to the 2021 calendar year. Leon opined that “the increase in the number of renewals is a very positive sign for economic growth”.

She noted further that “the incorporation of a company is occasioned by greater obligations when compared to the registration of a business name, and this serves as an indicator that entrepreneurs and investors are understanding the diversity in the vehicles that can be used to conduct business while limiting their liabilities.”

Under the Companies Act, companies are, among other things, mandated to file annual returns, identify beneficial owners, and file notices of change to officers.

With the Jamaican economy reopening last April, Leon posited that “the decline in the registration of business names may be as a result of many persons going back to work as employees rather than creating new businesses for themselves”.

The first year of the pandemic saw 12,809 business registrations, and 3,935 companies were incorporated. The following year, there was a significant jump of 4,230 and 943 in business and company formalisations, respectively.