• How do I set up and register a small business?

It begins with selecting a business name and submitting an application to the Registrar of Companies, Ministry of Legal Affairs, South Quay, Port of Spain or at the Registrar of Companies, Tobago House of Assembly Chamber, Jerningham Street, Scarborough, Tobago. You can visit http://rgd.legalaffairs.gov.tt/ for further information.

• What type of business can I register as and what are the advantages & disadvantages?

	ADVANTAGES	DISADVANTAGES
SOLE TRADER	Easy to establish and manage Decision making is speedy. Profits are not shared.	Unlimited liability. Problems in raising capital. Limited managerial skills. Long working hours.
PARTNERSHIP	Easy to form and manage. A more large scale operation can be undertaken. The partnership increases the ability of the partners to obtain financing for the business. Liability does not rest with one person as is the case of the sole proprietor. More informed decision making can be achieved.	Each partner has to take responsibility for the acts of other partners. Decision making is slower and even sometimes difficult. Operating costs are higher than in a sole proprietorship. A partnership has a limited life as a result of resignation, retirement, removal or death of a partner. Partners generally speaking have unlimited liability. However in a limited partnership, one or more partners have limited liability.
LIMITED LIABLITY COMPANY	Is a separate entity from the persons who actual invest in it. The company has an unlimited life. The company has a larger capital financial base than a sole proprietorship. The shareholders have limited liability.	The process to start requires more time and money. A company must make known or file its annual financial report with the Registrar of Companies. It is not easy for shareholders to sell their shares.



• What is a Business Plan?

A Business Plan is a written summary of what you hope to accomplish by being in business and how you intend to organize your resources to meet your goals. It is the road map for operating your business and measuring its progress along the way.



• What are the benefits of a Business Plan?

  Some of the benefits are as follows:

  • The Business Plan identifies the amount of financing or outside investment required and when it is needed.
  • A well-organized plan is essential for a lender or investor to assess your financing proposal and to assess you as a business manager.
  • By committing your plans to paper, your overall ability to manage the business will improve. You will be able to concentrate your efforts on the deviations from plan before conditions become critical. You will also have time to look ahead and avoid problems before they arise.
  • It encourages realism.
  • It helps you to identify your customers, your market area, your pricing strategy and the competitive conditions under which you must operate to succeed. This process often leads to the discovery of a competitive advantage or new opportunity as well as deficiencies in your plan.
  • Three or four hours spent each month updating your plan will save you time and money in the long run and may even save your business.
• Does the BDC have a guide to complete a Business Plan?

Yes, the BDC has a Business Plan Template. Please click here to download.

• Does the BDC give loans?

No. We provide partial collateral to enable businesses to qualify for a commercial loan at a financial institution (Commercial Banks or selected Credit Unions) by offering a Loan Guarantee to your lender to a maximum of 85% of the value of the loan up to $500,000.

• How much and what type of collateral would the Client need to have?

The Client is required to have the difference between the loan amount and the guaranteed value. The nature of the collateral is determined by the financial institution.

• What rate of interest do you charge?

The rate of interest is dependent on the normal lending criteria of the financial institution, since the financial institution is the lender.

• What is BDC´s requirement for obtaining the guarantee?

The borrower is required to provide supporting documents on the proposed venture as well as a business plan along with projected financials, proof of ID and registration documents of the business. Additionally, a completed loan guarantee application form must be submitted by the financial institution on your behalf.

• What is your fee for offering this service?

We charge the borrower 5% of the guaranteed amount.

• How long does the process take?

The standard timeframe is 10 working days after the application is received from the bank.

• Can any type of businesses apply?

All categories of businesses that are owned and operated for profit by citizens of Trinidad & Tobago can apply including sole traders, partnerships, co-operatives, franchises and limited liability companies. However, we do not facilitate the distribution of alcohol, real estate for speculative purposes, brothels and public houses, financial and speculative activities, and betting and gambling.

• Is this facility only geared towards new businesses?

No, we cater for existing and expanding businesses as well as new and start-up companies requiring a capital injection that exceeds what is available from other sources.

• What can the funds be used for?

Funds are available for working capital financing, inventory purchases, purchase of equipment, revolving loan facility and purchase of an existing business as a going concern. The BDC along with the Lending Financial Institution monitors each loan to ensure the money is utilized for the stated purpose.

• What is the maximum term of the Loan Guarantee Facility?

The maximum term for repayment is seven years.

• Which financial institutions provide these facilities?

All major Commercial Banks as well as some Credit Unions and Finance Houses. You can contact a Credit Risk Officer at 623-5507 for further information on those Institutions who are party to the Loan Guarantee Agreement.

• What kind of Equipment can I lease through Caribbean Leasing Company Limited?

Clients can Lease any type of Operating Equipment/Machinery.

• Must the Equipment I am leasing be insured?

Yes, the Equipment must be insured with a loss payable clause in favor of Caribbean Leasing Company Limited.

• Can the client establish their own insurance over the equipment?

No. All insurance policies must be undertaken via CLCL´s brokers. This will be organized by CLCL and the Client will only have to pay the premium.

• What if my company already does business with an insurance company?

This information can be provided to us so that our brokers can examine the company to determine if it is possible to place the insurance policy with them.

• Am I guaranteed to have my Lease approved?

No lease is guaranteed and they are all subject to the requisite approval process. The decision is based on the viability of the project.

• Is there a maximum or minimum Lease Amount?

The minimum lease is $25,000. There is no maximum ceiling and each case is assessed on its own merit.

• Can I still Lease Equipment if I have already purchased it?

Yes CLCL can purchase Equipment from the Client if it has been recently acquired and is in good condition, this arrangement is known as Sale and Lease Back.

• Do I have to provide collateral?

No. A personal guarantee may be utilized based on assessment of risk, but this is decided on a case by case basis.

• Can I use my own shipping/freight forwarder to import equipment?

We organize shipping arrangements directly with the equipment suppliers. The cost of shipping can be factored into the cost of the lease.

• How is payment organized with foreign suppliers?

We current pay foreign suppliers via letter of credit.

• Who is responsible for repairs to the leased equipment?

The Client is responsible for all maintenance and repair work to the equipment for the duration of the lease.

• What are the requirements to submit an application
• a. Annual financial statements for the last 2 years
• b. Cash Flow Projection over the proposed lease period (include relevant assumptions used to generate figures)
• c. Projected Income & Expenditure Statements for the proposed lease period
• d. Bank Statements (for the last 12 months)
• e. Business Registration/Legal Documents as follows:

OTHER INFORMATION

• Pro forma invoice from supplier written in the name of Caribbean Leasing Company Limited (with adequate equipment description, model & serial nos. etc.)
• Driver´s Permit/ID card or passport
• Copies of existing contracts/letters of intent/other evidence of trade
• VAT and Income Tax Clearance

• What is Approved Small Company Status?

A designation granted to Limited Liability Companies allowing for a 5 year corporation tax exemption of 25%, which as the tax rate is now 25% means that the net result is zero taxation.

• How can my company qualify?

The company should:

• Be locally owned and controlled
• Make optimal use of locally produced raw material
• Have machinery equipment and working capital which does not exceed a total of TT$1.5M.
• Employ at least 5 permanent employees.
• What documents should I submit?
• Certificate of continuance
• Certificate of incorporation
• Annual return for a company having share capital
• Notice of directors
• Audited financials for the year requested.
• Can a company put in application for e.g. 2005 in 2008 or does it have to be the previous tax/calendar year?

Yes, companies can submit applications for prior years, however it is subject to the discretion of the Board of Inland Revenue to honour the certificates (and issue a refund).

• Is there a processing fee for this service?

Yes, there is an upfront fee of TT$500.00 which is paid upon submission of your application.

• How do you determine optimal use of raw material?

An Officer will make a site visit to assess this.

• What period is the certificate for?

The certificate is valid for 1 year.

• How often can I apply?

You can apply annually for a period not exceeding 5 consecutive years.

• How long does it take to receive the certificate?

There is a time frame of 6-8 weeks since the certificate is issued by the Ministry of Trade and Industry.

• Where did the idea of a Research and Development Facility (RDF) originate? Why have this Facility?

For several years, Trinidad and Tobago has based its trade policy on the ongoing diversification of the economy by facilitating the expansion of the non-petroleum manufacturing and services sub-sectors.

The Standing Committee on Business Development in looking at the business landscape and also looking forward for Vision 2020 planning for support of the non-energy manufacturing and services sectors, outlined Research and Development as an area for crucial attention. Sustainable economic growth for developing countries such as Trinidad and Tobago requires substantial and continuous investment in Research and Development.

• What is the objective of the RDF?

The objective of the RDF is to stimulate and support investment in new and advanced technology and innovation as a competitiveness enhancement tool for businesses in the non-energy manufacturing and services sector. The RDF will serve as a direct support tool for businesses desiring to make Research and Development (R&D) an integral part of their strategic plans.

• How does the RDF work?

The RDF proposes to provide direct assistance through the provision of grants. Grants will be provided to a maximum of $100,000 per company annually, which represents two thirds of the Research and Development proposal costs. The business will cover the remaining costs as their investment in the project. The RDF is also designed to encourage business alliances, with grants of a maximum of $200,000 available to such alliances.

• What are the benefits for businesses that access the RDF?
• Enhancement of competitiveness
• Improvement of efficiency
• Development of human resource capabilities
• Improvement of profitability
• Access to new market opportunities
• What are the criteria to be considered?
• Businesses must be locally owned and operated
• Businesses must be in existence for a minimum period of 2 years
• Applicants must show evidence of ability to contribute a minimum of 33 1/3% of the project cost
• Businesses must have investment in non-property assets e.g. machinery, equipment and working capital, of TT$50,000 - TT$5 million
• Businesses must have annual sales turnover between TT$50,000 and $5 million

• What is the BDC´s role in international trade promotion?

  The BDC is the official Trade Promotion Organization of Trinidad and Tobago, taking over the functions previously administered by the Tourism & Industrial Development Company Limited (TIDCO).

• What are the specific support functions associated with trade promotion?

  The BDC will do the following:

  • Provide market intelligence for the products and services that comprise the industrial, manufacturing and services sector
  • Prepare and/or update trade and export-related publications
  • Give advice on trade matters as they relate to the Trade Agreements in which Trinidad & Tobago is involved
• What aid can the BDC give to companies toward the participation in trade fairs?

  Firstly, in order to receive any assistance, the trade fair must be one that is being facilitated by the BDC. Each trade fair is different and may require different forms of support. You can contact any member of the Trade Promotion Section for more information.

• Which are the countries and areas that T&T has beneficial Trade Agreements?
  

  TRADE AGREEMENTS

  
  

  COUNTRY/GROUPING	NAME OF AGREEMENT
  CARICOM	Treaty of Chaguaramas
  COLOMBIA	CARICOM/Colombia Agreement on Trade, Economic & Technical Cooperation
  COSTA RICA	CARICOM/Costa Rica Free Trade Agreement
  CANADA	CARIBCAN
  CUBA	CARICOM/Cuba Trade & Economic Cooperation Agreement
  DOMINICAN REPUBLIC	CARICOM/Dominican Republic Free Trade Agreement
  VENEZUELA	CARICOM/Venezuela Trade & Investment agreement

• Which countries comprise the Member States of CARICOM?

  The following countries are CARICOM Member States:

  
  

  Antigua & Barbuda	Montserrat
  Barbados	St. Lucia
  Belize	St Kitts & Nevis
  Dominica	St Vincent & The Grenadines
  Grenada	Suriname
  Guyana	Suriname
  Jamaica	Trinidad & Tobago

• Does this mean that my products can get duty-free access into all of these countries?

  Your goods may qualify for duty-free access into all CARICOM Member States.

• What is the Trade Information Facility (TIF)?

The TIF is a free, multimedia service that includes on-the-spot access to comprehensive international trade database products and one-to-one access to a trade specialist. It is a convenient and powerful tool that enables local entrepreneurs and businesses to access relevant market intelligence.

• What are some of the online databases in the TIF?

TIF subscribes to a list of comprehensive international trade databases which include:

• Euromonitor´s Passport GMID – International market intelligence on industries, countries and consumers.
• Kompass International – Comprehensive online directory of 2.3 million companies in 70 countries.
• Market Access Map – Covers custom tariffs (import duties) and other measures applied by 187 importing countries to products from 239 countries and territories.
• Trade Map – Indicators on international trade performance, demand, market potential and competition
• Interdata – International directory of importers.
• What industry sectors can I get trade data on?

The TIF covers all major industries for example:

• Food and Beverage
• Merchant Marine
• Printing and Packaging Industries
• Fish and Fish Processing
• Film
• Music and Entertainment
• Yachting
• What is the cost to the public for using the TIF?

The TIF is free of charge to members of the public.

• What is the difference between online resources and online trade databases?

The TIF online trade databases consist of databases that the BDC specifically subscribes to. Online resources can be accessed by the general public, but is included in the TIF for ease of research. Additionally, online trade databases requires some training before the user can effectively utilize it data.

• How can I contact the TIF?

Members of the public can contact the TIF by either, direct line 627-5748, fax 625-8126, e-mail info@bdc.co.tt, or visit the facility at 151B Charlotte Street, Port of Spain.

• What are the opening hours of the TIF?

The TIF´s opening hours are 8:00 am to 3:00 pm Monday to Friday.

• How are research queries processed?

Queries can either be answered by a member of the TIF, or members of the public can undertake research on their own by utilizing the TIF.

• What is the role of the Trade Certification?

  BDC´s Trade Certification unit is the Certifying Body for Trinidad and Tobago. This means that it is the official body that certifies goods that should be granted duty-free or preferential treatment as they are exported to countries with which Trinidad and Tobago have Trade Agreements. The Trade Certification unit must be satisfied that the goods in question qualify in accordance with the Rules of Origin for the relevant Trade Agreements.

• What is customs duty?

  When goods are shipped from one country to another, the government of the country receiving the goods usually charges a percentage of the value before the good are allowed entry. This percentage is a means by which government can obtain revenue from its trading relations and is collected at the point of entry by the Customs Authorities.

• If I ship goods to another country, how does the payment of duty affect the transaction?

  When you export, your customer in the receiving country will have to pay for the goods at the agreed price. In addition to this, customs duty will also have to be paid. If the customer has to pay this additional cost and intends to re-sell the goods, the goods will become more expensive and therefore will not be competitive since they may be sold at a higher price than that of similar goods.

• What are Rules of Origin?

  When a Trade Agreement is negotiated, rules are developed for goods and services to be traded free of customs duty. These Rules usually deal with the manufacturing process of the item. If the goods in question qualify in accordance with these Rules, then the goods can gain duty-free or preferential access into the importing country. Each Trade Agreement has its own Rules of Origin.

• There must be thousands of items that can be traded. How can all these goods be accounted for when a Trade Agreement is being negotiated?

  An internationally recognized system is used to identify each and every item that can possibly be traded. This is known as the Harmonized Commodity Description and Coding System (HS) The system has been adapted and incorporated into the Laws of Trinidad and Tobago. It is commonly known as the Customs Tariff. Apart from identifying each item by a series of numerical codes, the Customs Tariff also displays the applicable rate of duty for each item

• What is a Certificate of Origin?

  This is an export document, which represents a claim that the goods that are listed qualify in accordance with the relevant Rules of Origin. Each Trade Agreement would have developed its own Rules of Origin and its corresponding Certificate of Origin.

• What is the procedure for the exporting?

  For a customer wishing to export for the first time, the procedure is as follows:

  • Proceed to the offices of the Department.
  • Speak with an Officer informing him that you wish to export your product, mentioning your preferred destination.
  • The Officer will advise you as to the likelihood of your product qualifying for duty-free access.
  • The Officer will present you with an application form, which he will assist you in completing.
  • After the form has been completed, an appointment date is set for the Officer to inspect the premises.
  • The appointment is kept and the Officer visits your premises.
  • At a later date, the Officer will write to you, informing you that your product has qualified and requesting that you submit a list of authorized signatories with their specimen signatures.

  For a customer already involved in exporting, the procedure is as follows:

  • Proceed to the offices of the Trade Certification Department.
  • Present your completed export documents and your receipt to the Officer.
  • The Officer will examine your documents, ensuring that they have the same correct information and that the signature on the Certificate of Origin is an authorized one.
  • The Officer will also examine your receipt to ensure that the correct fee has been paid.
  • Once everything is in order, the Officer will then affix the relevant stamp and sign the Certificate of Origin.
• What forms must be filled out for any one shipment?

  The following table shows a list of forms that must be filled for the various Trade Agreements:

  
  

  FORMS	DESCRIPTIONS
  INFORMATION FURNISHED IN SUPPORT OF DECLARATION OF ORIGIN (FACTORY VISIT)	This is the document that needs to be completed before an appointment is made for the manufacturing process to be inspected
  CARICOM CERTIFICATE OF ORIGIN	This is the document which represents a claim for duty-free access into CARICOM Member States.
  CARICOM INVOICE	This Invoice is included in the suite of shipping documents for goods destined to any territory.
  CARICOM/COSTA CERTIFICATE OF ORIGIN	This is the document which represents a claim for duty-free access into CARICOM Member States.
  CARICOM/CUBA CERTIFICATE OF ORIGIN
  (CARICOM) AND THE CERTIFICATE OF ORIGIN DOMINICAN REPUBLIC
  CARICOM/COSTA CERTIFICATE OF ORIGIN
  CARICOM/VENEZUELA CERTIFICATE OF ORIGIN

• What export documents will be required for any one shipment?

  The required documents are:

  • Certificate of Origin
  • CARICOM Invoice
  • C82 Forms
  • and any other documents relevant to the type of shipment.
• What fees must be paid to acquire the services of the Trade Certification Unit?

  The Schedule of fees includes:

  Factory Visit Fees - TT$300.00

  Fees for approval of export documents to the following countries:

  • CARICOM
    • $50.00TT (Vat Inclusive) for shipments with a value of up to TT$6,000.00 (per shipment
    • o $75.00TT (Vat Inclusive) for shipments with a value exceeding TT$6,000.00 (per shipment
• Are these fees payable at the offices of the Trade Certification Unit?

  No, the fees are payable at any branch of First Citizens. If you know that you will be shipping regularly, you may pay in advance on a monthly basis. The Trade Certification Unit will keep a record of the usage of these funds as you take your shipments in for processing. If your shipments are not that frequent, then you may need to visit the bank before submitting your shipping documents for processing.

• What kind of training is available through the BDC?

We design and deliver tailored training programmes to match the precise needs of organizations. Our training programmes can be tailored to suit all levels, from the most junior person at induction level to Senior Management and Executive Teams.

We also run a series of public programmes monthly at convenient locations around the country. Some of the topics we provide include:

• Customer Service
• Professional Telephone Etiquette
• Effective Presentation Skills
• Conducting Effective Interviews
• Enhancing Managerial Effectiveness
• Supervisory Skills ­ Successfully Making the Transition
• Administrative Professional Conference
• Effective Proposal Writing Skills
• Decoding the Secret to Effective Business Writing Skills
• Why choose the BDC?

By choosing the BDC´s training services, you take advantage of all the strengths that an organization committed to taking your business further boasts of:

• Professionals who are trained and experienced in the consulting process and embrace values of honesty, trust and mutual respect.
• Facilitators who are committed to continuous learning and are able to use best practice and proven methodologies that deliver value.
• Experienced senior experts who go beyond theory and possess an intimate understanding of challenges faced by clients.
• Fully customized on-site/in-company training programmes that are in line with organizational objectives and strategies.
• Highly interactive environment that gets participants involved in the training process. As a result they are better able to recall and put training into effective use.
• Competitive prices which do not compromise the quality of our product.
• How can I access BDC´s training services?

To learn more about how the BDC´s Training Unit can assist you in transforming the skill set of your human resources contact our office at 623-5507 to schedule an appointment with one of our Training Officers

• What is consultancy?

  The BDC assists medium and large-sized businesses to implement new ideas, realize their vision and develop their full potential through the provision of a consultant.

• Are the consultants hired by the BDC?

  No. The BDC does not hire but approves consultants based on certain requirements for recommendation to clients.

• Does the consultant work according to the schedule of the BDC?

  No. The consultant proposes a schedule that is agreed upon with you, the client.

• Who pays the consultant?

  The client is responsible for paying the consultant. However, the BDC is prepared to subsidize the consultancy fee not greater than the input of the client and is treated on a case by case basis.

• Does the BDC get involved in the project?

  Yes. The BDC does maintain some level of oversight in the project to ensure the client´s satisfaction.

• What type of consultancy services are available?

  Since the list is quite extensive, it would be best if you can contact a Business Development Officer at 623-5507 for further information in this regard.

• What are the requirements to become a consultant with the BDC?

  The requirements for an individual or entity to qualify as a consultant with the Business Development Company (BDC) can be found by clicking on this link Consultant Guidelines

• What/Who is Sector Secretariat?

The Sector Secretariat has been established at the BDC to provide support to the Government in its drive to achieve its objective of economic diversification and sustainable development of the national economy.

The Sector Secretariat currently supports the management of projects for 4 implementation committees:

• Food and Beverage Industry Development Committee (FBIDC)
• Merchant Marine Industry Development Committee (MIDC)
• Printing and Packaging Industry Council (PPIC)
• Yachting Steering Committee

• What is the smeXchange?

The smeXchange is an online Business-to-Business (B2B) Portal, where buyers, sellers and other stakeholders post and exchange products and services.

• Is the smeXchange a trading company?

The smeXchange is not a trading company but rather an online business platform, where users can search or post information to find potential business partners regionally and internationally.

• Can anyone become a member of the smeXchange?

Any legitimate business servicing local, regional and international markets is qualified to become a member of the smeXchange.

• How do I apply for membership?
• Step 1 : Log on to www.smeXchange.com
• Step 2 : Post your company profile to the SME database and an email will be sent to you with your username and password to give you access to the site.
• Step 3 : Log in with this username and password and start enjoying the benefits today.
• What are the benefits of membership?
• Access to the SME E-business Guide for starting a successful E-business.
• Case Studies of successful local companies involved in E-business.
• A catalogue of your company´s products and services to the world.
• A low cost means of having a website available to you particularly if you do not have a company website.
• Access to E-business service providers.
• Membership discounts on upcoming BDC programmes.
• Finding and posting of business opportunities locally, regionally and internationally
• Access to online training programs An ICT training programme is available. You become a BDC certified ICT Champion upon completion of the programme
• A full e-commerce service where you can conduct international transactions real time.
• Is the website available in languages other than English?

The website is also available in Spanish with French and Dutch translations coming soon.

• What are Sector Development Projects?

Sector Development projects are projects developed by the Business Development Company with the aid of the government to assist businesses in Trinidad and Tobago in their growth and development.

• Are Sector Development Projects subsidized by the BDC?

Yes. The BDC subsidizes the cost of these projects so that the companies that participate in them would do so at less than full cost.

• Can any firm access these projects?

In general once any firm can benefit from participation in the project, they are allowed to access it. However certain projects that are developed may be targeting a particular type/size of business. The qualifying criteria for these projects would be made clear at the start of the project

• What are Implementation Projects?

These projects involve in-house consultation by recognized Consultants for systems implementation consistent with International Standards. The consultant will work with the participating organization, to develop, train and test the systems to ensure it is running effectively and consistent with the relevant standard.

• What Industries can register for these projects?

Any industry can register once there is a need for the service.

• What are the requirements to register?

A registration form has to be completed and payment must be made before the project begins. Payment plans are also available.