Regulatory practices in setting up and conducting businesses
HELLO, EVERYONE. This week I take pleasure in presenting a lesson on some of the government regulatory practices that persons must abide by when they are setting up and conducting businesses. This covers objective 13 under Section 3: Establishing a Business.
The regulatory practices governing the establishment of businesses refers to the rules and regulations by which persons who wish to establish a business should be guided. The regulations differ according to the type of business.
As far as the sole-trader type business is concerned, there are very few regulations in setting up of the business. In fact, many sole-trader type businesses do not have any requirements to satisfy at all. A few might be required to have permits or licences in order to operate businesses. For example, those involved in handling food, say at a restaurant, are required to have a food handler’s permit. They are also required to take a medical examination to satisfy the authorities that they are in good health as, otherwise, they could spread diseases. Public health inspectors will also visit the premises to ensure that sanitary conditions apply.
For those who are selling alcohol or spirits, a licence authorising them to do so is required. Taxi operators are considered to be illegal operators if they do not have the correct transport documents, including a licence to carry passengers. They are also given regulations regarding the number of passengers they should carry in their passenger vehicles. Hairdressers and barbers will be licensed to operate once it is proven that they are qualified and that they have hygienic places to operate in. Sand miners also need a licence to remove sand from riverbeds.
DEED OF PARTNERSHIP
The partnership should have a minimum of two partners and a maximum of 20. In setting up a partnership, a Partnership Deed, or Deed of Partnership, should be drawn up. This document includes the name of the business, names and other occupations of the partners, and statements as to how profits and losses will be shared. The document may be drawn up by a lawyer, but it is not mandatory. The Deed of Partnership should be taken to the Companies Office of Jamaica, who will give permission for them to operate the partnership if everything is in order. If a partnership is set up and there is no Partnership Deed, then the partners will make reference to the British Partnership Act 1890 which indicates that all profits and losses should be shared equally.
Private and public limited companies are required to register with the Companies Office of Jamaica and to present the documents required. Included is the very important document, the Articles of Incorporation, which has replaced the Memorandum of Association and the Articles of Association. A private company may be formed with one person or it may have up to 50. For the public company, the minimum number of shareholders is seven and there is no maximum. Public companies are required to publish their accounts and may sell shares to the general public via the stock exchange. The private company is not allowed to sell shares to the general public and, therefore, is not allowed to use the stock exchange.
In the case of professionals, e.g., doctors lawyers and accountants, etc, the requirement is that they register with their professional association. Their associations are permitted by government to play a major role in overseeing the professional conduct of their members.
Persons who are engaged in trades such as electricians and plumbers must be licensed. Some are required to sit and pass examinations which qualify them to receive their licences and practise unsupervised.
Co-operative societies should register with the Registrar of Co-operative Societies. They are required to pay a small fee. They should operate the co-operative based on the five co-operative principles.
Businesses on a whole must endeavour to do their part in upholding the monetary and fiscal policies of the government of the day. They should also work closely with government protection agencies such as the Bureau of Standards, the Consumer Affairs Commission and the ombudsman. There are also environmental policies, such as those of the Jamaica Environmental Trust and the Forestry Department.
You can do your own research on these areas too. Bye until next week when we will tackle the factors affecting location of businesses.