Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698074206516.pdf (Guyana)
THE OFFICIAL GAZETTE 3e JULY, 2003 LEGAL SUPPLEMENT- C. BILL No.

18 of 2003 Wednesday 304 July, 2003 PARLIAMENT OFFICE, Public Buildings Georgetown Guyana.

30a July, 2003 The following Bill which will be introduced in the National Assembly is published for general information.

S. E. Isaacs, Clerk of the National Assembly GUYANA BILL No.

18 of 2003 SMALL BUSINESS BILL 2003 ARRANGEMENT OF ARTICLES Section 1.

Short title and commencement 2.

Interpretation.


=4; PREAMBLE PART I - PRELIMINARY PART H - ADMINISTRATION 3.

Establishment of the Small Business Council.

4.

Functions of the Council.

5.

Meetings of di; Council.

6.

Establishment and functions of the Small Business Bureau.

-t fr 276 THE OFFICIAL GAZETTE [LEGAL SOPPLEMENTI — C 30Th JULY, 2003 2 7.

Establishment and management of the Small Business Development Fund.

8.

Policies, borrowing, accounts and records of Council.

9.
9.

Financial year, estimates, expenditure and accounts of Council.

10.

Audit.

1 I .

Procurement by the Government from Small Business.

12.

Fiscal Incentives for Small Business.

PART IV — POWER TO MAKE REGULATIONS l3.

Power to make regulations.

14.

Insertion of new section 37A in the Income Tax Act.

15.

Repeal of section 70(5) of the Income Tax Act.

16.

Amendment of section 60 of the Income Tax Act.

17.

Amendment to section 97 of the Income Tax Act.

18.
18.

Repeal and re-enactment of section 99 of the Income Tax Act.

19.

Repeal and section 105 of the Income Tax Act.

20.

20.

Repeal and re-enactment of section 108 of the Income Tax Act.

21.

Amendment of section 2 of the income Tax (In Aid of Industry) Act.

22.

Repeal of section 12 of the Customs Act.

23.

Insertion of new section 23 in the Customs Act.


111 THE OFFICtAL GAZETTE [LEGAL Surmit.tetql C BOTH .tUt,Y, 2003 277 3 A BILL —0P9UTV ED ANACT #0: pray* foc,a0PPROY,C;TONAnfiffP,clt PRIPmme for small business; the S.Small Business Bureau, the Small establishment oftha,SmalliBusiness Go Business Deysloposenqunglfanfltfo; Matters coaniScti:d ther4with and incidental thereto.

PARTI-ERCUAGNARY Short tide and commencement 1.


 This Aot may be cited as the Small Business Act 2003 and shall come into operation on such date as the Minister may by order appoint.

Interpretation.

2.
(1) In this Act — "the Council" means the Small Business Council established by section 3; "the Bureau" means the Small Business'Bureau established by section 6; "Minister" means the Minister assigned responsibility for small business; "small business" means any person or persons, including a body corporate or unincorporate, carrying on business in Guyana for gain or profit and satisfying the criteria listed hereunder, but does not include any business having Ai its principal object the furtherance of a charitable or political purpose - (a) ielitcoriAiree or registered• under the Companies Act- 041'initlie Business Names (Registration) Act; or No: 29 of 1991 Cap:90:05 609:02 278 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — C 3e JULY, 2003 4 (c) is owned by a person or persons trading not under the Companies Act nor in partnership Cap.
88:01 (d) a registered cooperative society under the Co-operative Societies Act; (e) is owned and controlled by those persons who hold the:majority shareholding or controlling interests in the business, and is not a subsidiary or affiliate of another company; and (1) satisfies at least two of the following conditions - (i) (ii) employs not more than twenty five persons; has gross annual revenues of not more than sixty million dollars; (iii) has total business assets of not more than twenty million dollars: Provided that the Minister may, after.
consultation with the Council, by order, which shall be subject to an affirmative resolution of the National Assembly, alter all or any of the criteria specified in this paragraph or specify other criteria inlieu thereof.. (2) A small business desirous of becoming an approved small business, under this Act, may Tatman application therefor to the Small Business Council by providing the following:.a certificate of incorporation under the Companies j THE OFFICIAL GAZETTE !LEGAL SUPPLEMENT) C 30TH, JULY,2003 ' 279 , 5 No.
29 of 1991 Cap.

901' Om.
89:02 Cap: 88:01 Act 1991, or rpsi:4=atiori ,.tinder the, wittqu Narries,(Registration) Act, or Certificate of Partnership'under the Partnership Act, or its registration as a cooperative under the Cooperatives Societies Act, or a declaration that the individual or group of indiVilivals are engaged in a small businessomd - (a) a declaration verifying the.particulars specified in subsection (2) (f); (b) (c) a certificate of tax clearance for the previous year; and a certificate of compliance from the National Insurance Scheme.
(3) Based on, a recommendation from the Courteil, a declaration, by the Minister, that a business is an "approved small bitsiness" for purposes of this Act, shall be required in order to obtain any eligible benefits specific to the small business sector.

1 A EitablishMa* of the Small Swamis CourmiL PART U — ADMINISTRATION • 3.

(1) There is hereby established the Small Business Council, which shall be a body corporate, comprising not more than eleven members appointed by the President in :•.,.
the following manner - 10.?,ixiti-mi !., f. )1 21.10FiN 5ff ; (a) ?.3tOindrlieliso*-tifigtfitiritithiththidiitkitifieol'dielt.finlitter; ii,rakieptesentativisfnfillibltgliiititilipetillibleelbr Small Business; bn6 friji ?r, lalagaaaaakitivettringmairateivisolvaiiielbr Finance; .23.75s.1:4d1)1 , foulPtleim/018,1141418811Pillbaill0iniga* ill6itififilkafMid functioning ban boo ;61 19d fmn t:; 111•)bodiemor'orgatitZediXt8 detogivitedi,44y4116 Minster, as representing srnagitatatissia ingthyajiikkr, .9•811E0 280 THE OFFICIAL GAZETTE (LEGAL SopPi.cmool C 30TH JULY, 2003 6 (e) one person representing a financial inttitution, other than a company licensed to carry on banking business under the Financial No.
I 0(1995 institutions Act 1995, designated by the Minister as a financial institution providing significant financial assistance to small businesses; (f) (g) one person nominated from the organization representing bankers; two other persons from other business disciplines or specific geographical areas; (h) the Chief Executive Officer of the Small Business Bureau who shall serve as Secretary of the Council and who shall not have voting rights.
(2) The Council shall elect, by majority, from among its,members a Vice Chairperson.

(3) The organizations referred to in subsections (1) (d) and (e) designated to represent small business on the Council shall have predominantly small businesses as their members or beneficiaries.

(4) The persons referred to in subsection (I) (d) selected to serve as members of the Council shall be owuess of viable small businesses.

(5) The terra.oroffree of members of the Council shall be one year.
(6) The names of the members of the Council as first constituted and every chanP.41 the ractuberrilgp,thgeofshail be published in the Gazette.

(7) The Minister may terminate the appointment of a member for any good and cause, and in particular, if the member—.

"1- 4 ' ‘r • THE OfFICIAL GAZETTE [LEGAL SupPtemerrl -30Th JULY.
2003 281 7 (a) becomes o unsound mind mis dtherwise incapable of carrying out his duties; becomes bankrupt or compounds with his creditors; (b) : (c) ; n1 n!1",.

• is convicted on a charge m respect of a criminal offence; (d) fails to attend three consecutiVinktithly meetings of the Councits.
(e) fails to discharge the functions contbrred or imposed on him by or under this Act: Provided that the apfi6intment of a member may not be terminated, under this sectiet, unless he has been given a reasonable opportunity of being heartl.

(8) A vacancy in the membership of the Council may be filled for the remainder of the term of office of the predecesskir in office in the same manner as the predecessor was appointed.
(9) A member may at anytime resign his ciffice by giving notice in writing to the Minister.

(10) The Minister may grant to a rnembei leave of absence where the member aPplies for' Weft leaVe, provided the Work of theCkncil is not adversely affected. '

 oiy'.
oiy'.

"LtOfiiiibihittheletoiuibtl'thit11 be Oki such travelling and subsistence "AitIOWaiiiiiftliniTtaiiiitY*dOteithiiiieby the Minister, after consultation with the Minister responsible for finance, for fhe iiiiitiose of facilitating their attendance at ' • " ji ; :1 ;41.4IJII/11111 • n .. ,11 :3111 iL ,i1.1fij?
di Ur) Ale&ttnietki 282 THE OFFICIAL GAZETTE [LEGAL SueetEeterri — C 30T" JULY, 2003 8 (12) ExPanes of the Council shall be defrayed out of monies provided by Parliament and other resources made available to the Council and the Small Business Bureau.

Functions of the Couneii 4.
(1) ,The functions of the Council are - (a) to review draft legislation proposed by the Government relating to small business or to matters of the private sector and economic development in which small business may become involved and submit comments thereon to the Minister; (b) ,to prepare and submit annually to the Minister, a Small Business .Policy and Administrative Reform Agenda, including recommendations for the addressing of developmental issues, the granting of incentives to small businesses and the facilitation of measures affecting them; ' ft (c) to prepare the Annual Report on Small Business in Guyana for submission to the Minister, not later than ninety days after the end , 9,4180 financial year; the report shaft contain in-formation on - ilii..;22,trnt 5f1 E, progress made in iiddressingdevelopmental issues and A; iv., 1,1 -....-_-n;?Llmr_itic .„111.P.flrullad.niiiniftratilfe,procedures relating to small businesses "T"f77'.
!

• .

 ' (ii) initiatives by the Government to facilitate access.to A nitancing by small businesses; (in) the status of procurement by the Government from smell businesses; • r 4.

THE OFFICIAL GAZETTE [LEGAL Suppamerd—C 9 (iv) the recommending4fi8cal incentives to small businesses; !...

 :,...-$84.4.09i.94,048.40411401RalPrOP,Iffseeter; • !
(4), tpaiAtailt;siegiabgANIKPuffllIstial4 businesses under this Act; • :11 (e) to supervise, manage and givejtlirlasiunao tlig,Sinall Business Bureau; .

(f) to establish contact and link4tql.

:WithOwItc.4WInizations, both local and overseas, withIsimilasfit*Siaad'oltileltives; (g) to pursue all legal arid eouraysi irikeserice of the goals and fulfillment of this Act.
vtf I ;F o (2) The Minister may give to the Council directions of a general natant; 3 twis to tfli t;61??
, '.3,11'3 reflecting Government policies for the achievement of the objects of this Act 1-(W)11111 '"12Lii3 !Jri (3) The first Small Business Policy and Administrative Reform Agenda shall be prepared and submitted by the Council to the Minister within ninety days after the 9r11 5bui3ni ibsriz • coming into operation of this Act and within ninety days of the end of each calendar year, thereafter.
A (4) The Small Business Policy and Administrative Reform Agenda shall be laid in the National Assembly not later than sixty days after it has been received by the 151Y.t Minister from the Small Business Council.

,,51-J;bilLft (Toirrom,rnaigsvi (,a) (5)1130 Annual Report on Small Business shall be laid in the-National Assembly • within sixty dap after it has been received by theftfinister from the ciptmett.

(Isne ,r11 ol 41,311Bup wlirioqi (b.)

isuatiA 5th In 1151b,fh.lf..)nuo.


).t)ctilo t.frioicep; .41 tol r&q.1) 9i:411311f ASIIZ Ii31IW srjsvijU n. nnnsf nnia, no not:p51 284 THE OFFICIAL GAZETTE (LEGAL SuPpwanter) — C 301H JULY, 2003 I0 (2) Five members ofthe Council, including the chairperson or vice- chairperson, and fhturither indrribers shall'constitute the quorum of the Council.
(4) The declaions of the Council shall be made by a majority of votes; the .14 chairperson shall have, in addition to amoriginat votedin any case in which the voting is equal, a casting vote.
(4) Minutes in proper form of each meeting of the Council shall be kept by the Secretary to the Council and shall be confirmed by the chairperson or any other member performing the.functions of chairperson as soon as practicable thereafter at a subsequent meeting on an affirmative motion by the members present.

Establishment and Functiotis of the Small Business Bureau.

6.

(1) The Small Business Bureau shall be established and shall be under the supervision of the Council.
(2) The Bureau shall be the secretariat of the Council and its responsibilities shall include the achievement of the goals and fulfillment of the functions of the Council including (a) promoting developmental issues relating to or affecting small business at the governmental level; (b) co-coordinating programmes for small business development with funding provided by the.
Government and other agencies; (c) monitoring the implementation of this Act; (d) (e) reporting quarterly to the Small Business Council; preparing for the approval of the CoufiCil-the draft of the Annual Report on Small Business in Guyana, which shall include - • A A r• THE OFFICIAL GAZETTE !LEGAL SUPPLEMENT] — C 30Th JULY, 2003 285 11 (1) initiatives by the Government to facilitate access to financing by small businesses; (ii) the level of procurement by the Government from small businesses; (iii) the recommending of fiscal incentives to small businesses; (iv) statistics relating to the small business sector.
(3) With the approval of the Minister, the Council may appoint on such terms and conditions as it thinks fit, a Chief Executive Officer and other such officers and employees of the Bureau as may be necessary for the discharge of its functions.

The Chief Executive Officer shall not be removed from office, or disciplinary action taken against him, without the approval of the Minister.
(4) The Small Business Bureau shall be headed by a Chief Executive Officer who shall be responsible to the Council for the proper administration of the Bureau in accordance with this Act and the policy of the Council.

n-n (5) The Chief Executive Officer shall have general control of the officers and employees of the Bureau and shall be responsible to the Council for their discipline.
PART III — FINANCIAL PROVISIONS Establishment and management of the Small Business, 7 (1) There shall be established by the Minister a fund to be called the Small Business Development Fund to provide for - (a) (b) support and access to financing for small businesses; non-financial services and assistance to help small businesses improve their productivity and competitiveness; 286 THE OFFICIAL GAZETTE 'LEGAL SUPPLEMENT] - C 3OTH JULY, 2003 12 (c) institutional support for organizations representing, promoting, supporting and strengthening small business; (d) funding the expenses of the Council and the Bureau.
(2) The resources of the Small Business Development Fund shall consist of - (a) monies appropriated by Parliament for the benefit of the small business sector in furtherance of the objectives of this Act; (b) monies made available by the Government out of loans raised by the Government; (c) grants made to the Fund; (d) (e) monies accruing to the Fund out of investments made by the Fund; revenues raised by the Small Business Council for services rendered.

8.
8.

(1) The Minister, after consultation with the Council and the Minister responsible for finance shall determine the policies to be carried out by the Fund, and the procedures to be established or instituted for effectively managing the resources of the Fund shall be determined by the Minister or, if so required, shall be authorised by law.
(2) The Council may with the approval of the Minister responsible for finance, borrow money from time to time from any source approved by the Minister of Finance for the purpose of meeting or discharging any of its obligations under this Act.

(3) The Council may with the approval of the Minister of Finance, give security over the whole or any part of its obligation for the repayment of amounts borrowed under this Act and the payment of interest charges on the amount borrowed.
Policies, borrowing accounts and records of the Council.
THE OFFICIAL GAZETTE [LEGA_ SuPPLEMF_N1 - C 30TH JULY, 2003 287 13 (4) The Council shall cause the Bureau to keep proper accounts and records of the transactions and affairs of the Council, Bureau and Small Business Development Fund and shall do all things necessary to ensure that all monies received are properly brought to account, all payments out of its monies are correctly made and properly authorised and that adequate control is maintained over its property and over incurring of liabilities.
(5) The Council shall not, without the prior approval in writing of the Minister responsible for finance - (a) (b) dispose of its capital assets; or apply the proceeds of a disposal to which paragraph (a) refers, to any undertaking.

9.

(1)The financial year of the Council shall commerce on 1' January in each year and expire on 311 December in the same year.

(2) The Council shall, not later than 14 August in each year, in such form as .
the Minister directs, submit to the Minister for approval, estimates of the revenue and expenditure of the Council for the following financial year.

(3) The Minister may approve the estimates, approve them in an amended form or return them to the Council for resubmission in an amended form with a reasoned statement of his objections.
(4) In re-spectof any item of expenditure ofthe.Council, which is not authotized-by the estimates or by the Minister, etchinemlsenthall be personally, jointly and severally liable tor it, provided that a member shall not be liable for.such expenditure incurred by reason of a decision.

Financial year, estimates, expenditure and accounts of the Copncil.
14 288 THE OFFICIAL GAZETTE (LEGAL SUPPLEMENT] — C 30TH JULY, 2003 14 (5) Not later than 14 July in each year, the Council shall prepare an account in such form and containing such information in respect of the immediate preceding finanoial year as the Minister may require.

Audit.

10.

(1) The Auditor General shall examine and audit the annual accounts of the Cap.

73:01 Council in accordance with the provisions of the Financial Administration and Audit Act.
(2) The Council shall as soon as possible after the end of each year and in any event, not later than five months from the end of any year, submit to the Minister a report containing — (a) an account of the performance of the activities of the Council, the Bureau and the Small Business Development Fund during the preceding year; (b) an assessment of any programme undertaken; and (c) a statement of the audited accounts of the Small Business Development Fund.
(2) The Minister shall lay before the National Assembly a copy of thereport referred to in subsection (1) as soon as practicable after receiving that report from the Councik Procurement by the Government from Small Business.

II.
II.

(I) The Government shall use its best endeavors to ensure that at least twenty percent of the procurement of goods and services required annually by the Government is obtained from small businesses and for this purpose, the Council shall prepare annually a Small Business Procurement Programme.

(2) Procurement shall be at competitive prices and in accordance with the No.

8 of 2003 provisions of the Procurement Act 2003 and the regulations in force.
THE OFFICIAL GAZETTE (LEGAL SupvtaAsal — C 30Th JULY, 2003 289 15 (3) For the purpose of giving effect to subsection (1), the Council shall prepare annually for submission to the Minister an annual report on the progress made in implementing the Small Business Procurement Programme, forming part of the Annual Report on Small Business.

12.

(1) The Government shall use its best endeavors to provide fiscal incentives for small businesses Fiscal Incentives for Small Business.
1 (2) The Council shall submit to the Minister, within one hundred and twenty days after the coming into operation of this Act, a recommended list of taxes and incentives for small businesses.

PART IV — POWER TO MAKE REGULATIONS Power to make regulation.

13.

(1) The Minister, after consultation with the Council, may make regulations for the better carrying out of the provisions of this Act.
(2) Regulations made by the Minister pursuant to subsection (1) shall be subject to negative resolution of the National Assembly.

290 THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] - C 30TH JULY, 2003 16 - -4 EXPLANATORY MEMORANDUM The Act provides for the setting up of a legal and institutional framework to nurture the growth and expansion of small business and to offer assistance to the efforts of the small and micro enterprises.
The structure comprises the establishment of the Small Business Council, a Small Business Bureau and a Small Business Development Fund.

These are interlinked with each other with clearly defined lines of authority and functions.

The Council will have overall responsibility for the Bureau.

The Bureau would be the administrative enn of the Council and with responsibility for the administration of the Small Business Development Fund.
The Council shall comprise up to eleven members with small business organizations occupying NA, four members of the Council which will include representatives from Government, financial institutions and other disciplines.

The Bureau would be headed by a Chief Executive Officer, who shall be the Secretary to the Council and the administrative head of the Bureau.

Chair procedures are Set out with respect to th4".cttnipositten, appointment and functioning of the, Council.
Also included are, powers, rules of procedure, management and responsibilities of the Council.

 • THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] - C 301"4 JULY, 2003 291 17 The Act outlines the financial obligations of the Council to be transparent; to prepare reports and to enable its reports to be tabled in the National Assembly.

Manzoor Nadir Minister of Tourism Industry and Commerce.