Registration Process - Limited Liability

So the next most popular type of company is the Limited Liability Company. Now the major difference between a Sole Trader and a Limited Liability is the fact that the owners of a Limited Liability company have limited liability – meaning that they are not held personally responsible for any debts or damages incurred by the business. (The only exception to that rule is if the owners of the Limited Liability Company are guarantors on a company loan taken financed by the Bank.) Essentially there is a distinction between the business and its owners.

Now the process for registering a Limited Liability Company is a little more detailed and requires a bit of running around in Port of Spain.

Step 1 – Obtain All Forms
You can visit http://www.legalaffairs.gov.tt/documentcentre/Forms.html#online to download and print the required forms. Remember, all forms are completed in DUPLICATE.
The following forms are required:
• Application for name search/name reservation (Form No.25)
• Articles of Incorporation (Form 1)
• Declaration of Compliance (Form 31)
• Notice of Address (Form 4)
• Notice of Directors (Form 8)
• Notice of Secretary or Notice of Change of Secretary (Form 27)
•

Step 2 - Application for name search/name reservation
You must choose three potential names for your business to be submitted to the Companies Registrar. The form is filled out in duplicate and vetted by an officer. You will then be directed to the cashier to pay the $25.00 fee and be told when you can return for the document.


Step 3 – Collect your name reservation document
You would need to visit the Companies Registry to collect the document indicating your reserved name. You must present your receipt to collect the document.


Step 4 – Complete Forms 1, 4, 8 and 27.
Remember forms are completed in duplicate. Each form has simple instruction on the back which you can follow and one of the directors can sign as Incorporator (The Incorporator is the person that is completing all the paper work to complete the incorporation of the company)

The Articles of Incorporation (Form 2) - The important points to note in this form are the type of shares (usually Ordinary Shares) and number of shares the company intends to issue.

The Notice of Address (Form 4) – This form lists the address of the premises from which you operate.

The Notice of Directors (Form 8) – This form lists all names, addresses and occupations of the Directors of the company.

The Notice of Secretary (Form 27) – This form lists the names, addresses and occupations of the Company’s Secretary.


Step 5 – Locate a Justice of the Peace of a Commissioner of Affidavits
In both San Fernando and Port of Spain, they can be easily located near the legal courts. Either one can fill out and sign the Declaration of Compliance (Form 31), however there is a cost attached to it which can be from $20 upwards depending on where you go.

Step 6 – Stamp Duty
You must take your Articles of Incorporation to the Stamp Duty Section at Board of Inland Revenue to have the form “stamped” at a cost of $25.00. According to the Ministry of Finance, Stamp Duty is a tax that you must pay when carrying out certain transactions that require legal documents. This can be done at any of the Board of Inland Revenue Stamp Duty departments. You can read more about Stamp Duty at http://www.finance.gov.tt/services.php?mid=38
The Stamp Duty Section is located at:
Inland Revenue Division
Ground Floor
Trinidad House
Edward Street, Port of Spain

Or

South Regional Office
Inland Revenue Division
Cipero Street,
San Fernando


Step 7 - Complete Registration Process
All you Forms must first be vetted by an Officer at the Companies Registry. Once your forms are in correctly completed, you will be directed to the cashier. Fees are as follows:

The Articles of Incorporation - $400
The Notice of Address - $40
The Notice of Directors - $40
The Notice of Secretary - $40
Declaration of Compliance - $40

The cashier will instruct you as to when you can return to collect your documents.

And remember, DO NOT LAMINATE YOUR CERTIFICATE!!!

Registration Process - SOLE TRADER

One of the most interesting experiences for me thus far, was the process involved in registering my business. It was indeed a learning experience, from waiting under a tent for Companies Registry to open, to visiting the that same office no less than four times, to running down to BIR trying to locate the Stamp Duty section - you truly see what a bureaucratic nation were are.

Now registering your own business can seem daunting but once you have the time to spare, it can be done at minimal cost to you (instead of the exorbitant fees that lawyer charge). Now you may ask yourself what is the purpose of registering your business and may be reluctant to advertise to Inland Revenue that you have a business. However, having your business registered gives you a level of professionalism and sets you apart from those fly-by-night companies. Plus it’s kinda the law

The next few blogs will outline the steps involved in registering your business and includes information on the different types of registration documents as well as the important buildings that you will need to visit.

The first thing you need to decide is what type of company you are going to register –
A Sole Trade
A Partnership
A Limited Liability

This blog will highlight the registration process for a Sole Trade

A Sole Trader is a type of business enterprise which is owned by one person – there is no distinction between the business and its owner.

Now a Sole Trade carries UNLIMITED LIABILITY meaning that the owner of the business is liable for debts incurred by the business (e.g. loans) or any damages incurred by the operations of the business.

Most individuals choose to register their business as a Sole Trader as they want complete control of their business. It is a simple process to register your business as a Sole Trade.

Step 1 – Obtain all forms.
You can visit http://www.legalaffairs.gov.tt/documentcentre/Forms.html#online to download and print the required forms. Remember, all forms are completed in DUPLICATE.
The first form required for Sole Traders is the Registration of the Business Name which is available at the Companies Registry, located in South Quay Port of Spain. (It’s in the building that has a very large coat-of-arms on the front where you go to get your birth certificate).The second form that you require is Application for Registration by an Individual (Form 1) which can be downloaded from the site listed above.

Step 2 – Name Search and Name Reservation
A name search must be done to ensure that there are no other existing businesses that carry your intended name. The Business Name Act doesn’t allow the registration of identical names, so basically you can't register a name that another business is already using. Incidentally, you can also visit http://rgd.legalaffairs.gov.tt/ and search the database to discover whether your business’ name is already in use by another company. Once the name is not in use, you must apply to have the name reserved and it is usually held for a period of three months, during which you must complete the registration process.
Once you have obtained the Registration of the Business Name form from the Companies Registrar, you can fill it out (in DUPLICATE) and have the person at the help desk check your form. You will then be directed to the cashier to pay the $20.00 fee. The cashier will let you know when you can return to collect the document indicating your reserved business name.

Step 3 – Collect your name reservation document
You would need to visit the Companies Registry to collect the document indicating your reserved name. You must present your receipt to collect the document.

Step 4 – Complete Registration Process
You must complete your Form 1 (in DUPLICATE) and have it vetted by an officer at the Companies Registry. Once the Form is completely correctly, she will direct you to the cashier to pay the $220.00 fee to complete the registration. The cashier will again let you know when you can return to collect your registration certificate.

Step 4 – Collect the Registration Certificate
Again you must present the receipt to collect your yellow certificate. Ensure that all the information is correct before leaving the office. And remember – DO NOT LAMINATE YOUR REGISTRATION CEDRTIFICATE!!

Marketing

Now that the busy Christmas season is over and my potential customers have spent all their money, I am now facing what is probably the slowest month of the year –The month after Christmas - January. What’s worse is not only have these potential customers of mine spent their entire December’s salary, they’ve also spent part of January’s salary, seeing that they all got paid early for the Christmas season.
So what am I to do??

This brings me to a very important factor in running your own business – Marketing and how it can make a difference in your business. As entrepreneurs we have to be innovative in our marketing!! During these down times, it’s important that we place even greater focus on our marketing efforts!!!

Now remember, marketing is not just about promoting your products – no I’m taking about the 4 P’s: Products, Pricing, Placement and Promotion.

Products – This business started with an idea for one main product line. During the initial launch phase, we came to realize that putting most of our eggs in one basket was not the best thing for us and we decided to start catering to a wider variety of customers. By varying our product lines, we were able to test the market and determine the products that were likely to generate the greatest sales. This is an ongoing exercise as consumer demands are always changing. And it’s important that online stores carry not just seasonal items, but items that customers are likely to buy throughout the year.

Pricing – This is a major differentiating factor for most online stores. As an online store my recurring monthly overheads are pretty low – there are no rent or electricity charges and no salary (not even for me sometimes). And my prices reflect this – I don’t need to charge what those big brick and mortar stores are charging. I can compete on prices! So my after-Christmas discounts and my sale prices are still lower than what is offered at most stores. And which Trini doesn’t love a really good SALE!!!

Place - So my store is not your typical brick and mortar store. However while I may not have a physical location, my website must be maintained the same way a store front would. It’s important that content is updated frequently and the design is kept fresh so that customers would keep coming back to my website.

Promotion – This is a very important “P”. An entrepreneur is required to think outside the box when it comes to promoting a business. Facebook has assisted us tremendously - a Facebook page is free and you can update your fans on sales and new products on an hourly basis if you like. And Facebook ads expand your market reach and even allow you to see how people are responding to your ad. And there are hundreds of online articles with tips and advice on marketing your website. So get on the internet and do your research!!

Coping with the Stresses of Entrepreneurship

In my previous entry I made mention of the fact that running your own business is hard. What I want to blog about today is how much harder it becomes when you a balancing a 8:00-4:15 job, a two hour commute, and responsibilities at home along with running your own online store. You hair becomes grayer, you’re liable to doze off ANYWHERE due to exhaustion, and you sleep in punctuated by mental lists of all the things you have to do. And I know that there are many entrepreneurs out there that can relate to this 


So what is the key to dealing with this stress? It’s not about grinning and bearing it. The key is keeping the end goal in mind. It’s about reminding yourself that there is a greater purpose to this – a wise friend once told me, “your own business is not as stable as a job but it (is) more fulfilling...$1.00 from your own business feels better than $1,000 from a company”.

Time management does make it a lot easier. Plan out your weekly list of things to accomplish and structure your evenings to comfortably fit everything in. Remember to prioritize because your time is limited. It might mean some sacrifices but remember to keep the end goal in mine.

Sometimes it's even good to take an evening off because if you're tired and stressed, forcing yourself to work may actually be counter-productive. Give yourself a break (and have your business partner earn his keep ) It may just mean you have to make it up over the weekend.

And remember it’s ok if you wanna stop and scream (like I do) to relieve the stress.

It’s also important to have a solid support structure because that structure will be the roots that are going to hold you up when the storms come. They are the ones that will encourage you to pursue your dream, especially when you're ready to throw in the towel.

PayPal

During our development stage an important consideration was how to facilitate online payments and PayPal was our first option. Since we’ve launched, there has been a lot of question on the security of the website so I’ve decided to provide some additional information on PayPal and the security that it offers our customers.

So how does PayPal work? Basically PayPal acts as an online broker or financial middleman that provides a safe and convenient way of making online payments. If you opt to register with PayPal, your information is stored in their database; when purchasing from an online merchant, like The Island Shack, you are simply redirected to PayPal’s website where you log in and proceed with the transaction. Payment can still be made through PayPal even if you do not have a PayPal account. You are simply required to enter your relevant information into their forms and proceed with the transaction. Notably, these online merchants receive the payment from PayPal without ever seeing your financial information.

What makes PayPal so great is the protection that it offers. PayPal protects it users by maintaining physical, electronic and procedural safeguards that are all in compliance US Federal and State Regulations. Additionally, safeguards such as firewalls and data encryption as well as physical access controls to PayPal’s buildings and files help ensure that you information is closely protected. Simply put, your information is as well protected as the President himself.

PayPal also works with you to protect any unauthorized payment. Email confirmations are sent for ALL online purchases. If you receive an email for a transaction that was not approved, you can contact them to resolve the issue and you will not be responsible for the charge. Additionally, if the product received varying significantly from what was advertised or if you don’t receive the product that was purchased, and you are unable to resolve it with the merchant, you can open a Dispute under their Buyer Protection Program and receive a reimbursement of your purchase price.

This was the main reasons why we option to use PayPal - It protects you, our customers. So you can rest assured that online purchases made on The Island Shack are well protected by PayPal

For more information, you can visit their website at www.PayPal.com.

Testing..1.2.3..

I wanted to share my experience of being an entrepreneur and the trials and tribulations of running my own online store, as the journey thus far has been an interesting one. I have decided to blog about my ongoing experience and hope that the lessons I have learnt inspire those thinking about starting their own business, and motivate those may be stuck in a rut.

I’ve always known that I would one day own my business. After promises of extra money for new shoes, handbags and clothes and a bit of forceful nudging, I eventually decided that it was time make the leap. However, after all the articles I read and all the research I completed not to mention the experience I have in helping persons develop their businesses, I was still not prepared for the long hours and the hard work.

So the first entrepreneurial lesson learnt - Being an entrepreneur is not easy. Dancing through the streets of Port of Spain for two consecutive days in heels is easy. Sitting in traffic for three hours, trying to get to work is also very easy. Being an entrepreneur however is not. I was required to develop patience, forgo sleep and read a million and one articles.

Nothing prepares you for the long hours and the hard work –Nothing

This brings us to entrepreneurial lesson number two– A true entrepreneur does not give up. It’s important that your stay focused and steadfast so you put on your big girl pants and deal with the hard work and the long hours cause….

Entrepreneurial lesson number three – The hard work pays off. Many entrepreneurs preach that having your own business is rewarding. I will admit that it took me some time to get there, but after all the sweat and tears, the end result was something to be proud of.....

Make sure and check out my website The Island Shack