Companies enjoying Approved Small Company Status derive a tax relief, administered by the Ministry of Trade and Industry. There is however, only one way to secure Approved Small Company Status and that’s through the BDC.

Benefits

• To Register Limited Liability Companies- A registered Small Company would be entitled to relief under the Corporation Tax Act in the form of a Tax Credit of twenty-five percent (25%) of its chargeable profits, which would reduce the tax payable by the amount of the credit.
• To Financial Institutions- Financial Institutions granting loans to approved small Companies will be entitled to the following benefits:
  
  • Ten percent (10%) tax deduction of the net increase of loans to approved Small Companies for the year of Income.
  • Fifty percent (50%) exemption on Corporation Tax from interest earned on transactions to approved Small Companies.

This incentive to financial institutions would allow for greater benefits for approved small Companies, with improved availability of funding.

Qualification Criteria

In order to be registered as an approved Small Company, the following criteria have to be satisfied by a Limited Liability Company:-

• Be locally owned and controlled.
• Must not have as a shareholder any other Company holding shares directly or indirectly through its nominees.
• If incorporated on/after 8th January 1988, is not a result of splitting or reconstruction of an existing Company.
• Has machinery, equipment and working capital value of which does not exceed TT$1.5 million.
• Has potential for creating jobs.
• Have at least five (5) permanent employees.
• Makes optimum use of locally produced raw materials.
• Operates a system of accounts audited by an accountant who is a member of the Institute of Chartered Accountants of Trinidad & Tobago.

How to Apply

Complete the application form available at all offices of the BDC or also available online here and attach the following documents::

• Certificate of Continuance.
• Certificate of Incorporation.
• Sixth Schedule-Form of Annual Return for Company having share capital.
• Notice of Directors (Form 8).
• Audited Financial Statements for the year of Income and Introductory Report from Auditors.

Submit the completed Application Form with the processing fee of $500 to any office of the BDC.

Registration Procedure

• The BDC conducts a site visit at the business premises of a Company seeking registration.
• Applications will be evaluated by the BDC, and satisfactory applications will be submitted to the Minister of Trade and Industry for approval.
• On receipt of the Minister’s approval, the BDC will issue a Certificate of Approval to the Company, which must be attached to the Return for the year of Income in which the Tax Credit is being claimed.

The certificate of Approval is valid for one (1) year from the date of issue.