In 1999, government enacted the
Small Business Development Act, 1999-23 which introduced a new fiscal
regime and regulatory framework designed to facilitate the growth of the
small business sector in Barbados.
The Act is an important fiscal
instrument which is deliberately designed to elevate the concept of
"small business" in Barbados to a new level. Enacted against the
backdrop of a long standing tradition in Barbados where it is common place
to hear the average small businessman to refer to his registered business
name as a company, and to think of 'small business' as synonymous with a
registered business name, the Small Business Development Act, 1999-23, gives
new meaning to the term "small business" which now contemplates
the incorporation of a company under the Companies Act, Cap. 308 and not a
business name.
The Act provides a variety of
incentives, technical assistance and relief from taxation to qualified
small business persons willing to undertake the challenge as well as the
discipline of running their affairs through the vehicle of a company
incorporated under the Companies Act, Cap. 308.
At present, the Act is jointly
administered between the Ministry of Commerce, Consumer Affairs and
Business Development on Reef Road and the Office of the Registrar of
Corporate Affairs and Intellectual Property on Belmont Road.
Initially, the application for
"approved small business" status is made (in the prescribed Form
1) to the Ministry of Commerce, Consumer Affairs and Business Development
which processes the application and makes a recommendation to the Minister
regarding the grant or refusal of "approved small business"
status and the level of incentives to be granted to successful applicants.
Following approval of an
application by the Minister, Cabinet approval is obtained for the making
of a Ministerial Order declaring the applicant company to be an
"approved small business" and setting out the incentives to be
received by the company. The Order is then prepared by the Chief
Parliamentary Counsel and published in the Official Gazette as a Statutory
Instrument.
After publication of the Order in
the Official Gazette, the applicant is contacted by the Ministry of
Commerce, Consumer Affairs and Business Development, officially informed
of the approval and advised to submit the necessary documentation to the
Office of the Registrar of Corporate Affairs and Intellectual Property
together with the prescribed fee.(See FEES)
The Registrar of Corporate Affairs
and Intellectual Property is responsible for keeping a separate register
known as "the Register of Small Businesses" in which shall be
entered certain statutory particulars required by the Act. The Register
shall also be responsible for issuing a certificate of registration and
for keeping records of "approved small businesses" for
inspection by any member of the public wishing to do so.
