Jamaica made a real change worth knowing about if you're planning to extract profit as a foreign shareholder: as of 1 April 2025, withholding tax on dividends paid to non-residents dropped from as high as 33⅓% down to a flat 15%. Previously, combined with corporate tax, the effective rate on distributed profits could reach roughly 50%, now it's meaningfully lower. Here's what it takes to start a business in Jamaica in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Registered Business / Sole Proprietorship. The simplest structure, full personal liability, easy to register with the Companies Office of Jamaica (COJ).
- Private Limited Company. Can be incorporated with just one person as both sole Director and sole Shareholder, though that same person can't also serve as Company Secretary, every company needs a distinct second individual or firm in that role.
- Public Limited Company (PLC). Needs at least three directors and can offer shares publicly, typically via listing on the Jamaica Stock Exchange, with stricter governance and reporting requirements.
Jamaica permits 100% foreign ownership for both legal and natural persons, with no nationality requirements for shareholders or directors.
2. Register your business
Reserve your company name, then file incorporation documents, Form 1A for profit-making companies limited by shares, Form 1B for non-profits, with the Companies Office of Jamaica through the Electronic Business Registration Platform (eBRF). Your registered office must be in Jamaica, and every company must appoint a Company Secretary. Formation typically takes 3 to 10 business days depending on entity type. A critical point many new business owners miss: COJ registration creates your legal entity, but it does not automatically register you for taxation, payroll, or GCT, those are separate steps entirely.
3. Register for tax separately
After incorporating, register with Tax Administration Jamaica (TAJ) for a TRN (Taxpayer Registration Number), required for any person or entity doing business with the government. If applicable, register for GCT (General Consumption Tax), and if you're hiring, register for NIS (National Insurance Scheme) and NHT (National Housing Trust) contributions before starting payroll, not after.
4. Check licenses and permits
Jamaica doesn't issue a single national business license. What you need depends on your industry; check with the relevant regulator for anything beyond standard COJ and TAJ registration.
5. Understand Jamaican taxes
Corporate income tax is 25% for unregulated companies (the vast majority of businesses), rising to 33.33% for regulated entities like banks, deposit-takers, life insurers, and securities dealers. GCT (Jamaica's VAT equivalent) is 15% standard, with some goods zero-rated or exempt; registration is required once annual gross sales exceed JMD 15 million, or you can register voluntarily below that to claim input credits, filed monthly through the TAJ portal.
As of 1 April 2025, withholding tax on dividends paid to non-resident shareholders, individual or corporate, dropped to a flat 15%, down from up to 33⅓% previously, and can be reduced further under one of Jamaica's roughly 15 double taxation treaties, including with the US, UK, Canada, and China.
6. Stay compliant
Companies file annual returns and financial statements with the COJ, plus annual Income Tax Returns with TAJ. If you're self-employed, NIS and NHT contributions run roughly 3% to 6% combined, paid quarterly alongside your tax filings. Keep business records, receipts, invoices, and ledgers for at least 7 years under the Revenue Administration Act.
Jamaica business costs at a glance
| Item | Cost |
|---|---|
| Company formation timeline | 3 to 10 business days |
| Corporate tax, unregulated companies | 25% |
| Corporate tax, regulated companies | 33.33% |
| GCT, standard rate | 15% |
| GCT registration threshold | JMD 15 million turnover |
| Dividend withholding tax to non-residents (since April 2025) | 15% |
Frequently asked questions
What's the dividend withholding tax on non-resident shareholders in Jamaica?
A flat 15% as of 1 April 2025, down from up to 33⅓% previously.
What's the corporate tax rate in Jamaica?
25% for unregulated companies (most businesses), rising to 33.33% for regulated entities like banks and insurers.
Does registering with the Companies Office of Jamaica also register a company for tax?
No. COJ registration creates your legal entity, but you must separately register with Tax Administration Jamaica for a TRN, and for GCT and payroll if applicable.
When do I need to register for GCT in Jamaica?
Once annual gross sales exceed JMD 15 million. The standard GCT rate is 15%.
Can one person be both the sole director and Company Secretary in Jamaica?
No. Even a single-person Private Limited Company needs a distinct second individual or firm as Company Secretary.
Fees and rates above come from Tax Administration Jamaica (TAJ) and the Companies Office of Jamaica (COJ) as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Jamaica-qualified accountant or lawyer about your specific situation.