Starting a New Business in Negril as a foreigner - Do's, dont's and general advise

[Sweets]

Hiya,

I was in JA last in March (going back again in September) needless to say I loved it! and then on a recent trip to Malta, I got an idea for a business that I'd like to set up in Negril.

I've got a good feeling about it but I know that it'll take a lot more than a hunch for it to materialize.

I'm sure there are boardies who have been in my position and I would love to hear your stories.

Obstacles you've faced & how you overcome them, lessons learnt, what you know now, that would have been helpful to know at the start of your journey of setting up a thriving business in JA as a foreigner(European in my case).

If you prefer please email me. I appreciate all the love, support and advise I can get and if you have got any questions fire away!

Much love and respect ya'll :)

[Rob]

Sweets,

This is a tourist oriented website, and while starting a business is a common dream for many who visit this forum, there are very few people here who can answer your question in anything other than a second hand account.

That being said, there are a few of us here who have started businesses in Negril and Jamaica and have been successful. And come to think of it, there are really only a few non-Jamaicans that I know who have started up long term thriving businesses in Negril.

There are things that need to be done in order to acquire all the necessary paperwork and legal status for both you and the company you want to set up. I would not call them obstacles, just the usual steps that need to be taken when setting up a new business. Being a foreigner will add a few steps, but nothing daunting.

The best initial advice I could give you is on your trip in September, search out some of us who have been successful here and listen to the advice that you get from these people. I took about 3 years of research here before starting my business, Negril.com, back in 1995. The research I did made the whole thing much easier.

As a footnote, I lost count years ago of the number of people I have seen move to Jamaica, invest much more money than they anticipated, and went home empty handed. Most feel that Jamaica was to blame, but in reality it was their inexperience and lack of research that got them into trouble in the first place.

[captaind]

Right on point and well said Rob

[rastagirl777]

I can't speak from personal experience but I have many friends that own businesses in Negril.

First and foremost I have to ask you - how many times have you been to Jamaica and for how long each time? Do you plan on living in Negril or running a business in absentia? What type of business do you plan on starting?

The reason I ask these questions is that while Negril is a great place to visit, one must really know the "runnings" to live there happily. Living there, staying there for extended periods of time present different challenges than say a two week vacation would. My suggestion, if you have not spent more than a month there is to gradually do that - start with a month, move on to two, three, four months - and if you can try to include time during slow/hurricane season.

When my friends started their business they found something that was lacking and filled that void. I guess that would apply to anywhere you'd start a business but in a town like Negril that is so tourist oriented you really need to think outside the box. For example, there are tons of catamaran cruise companies at this point, tons of jet ski operators, tons of boutiques/shops...you need to spend time there to suss out the business scene. If you are going to re-invent the wheel make sure that wheel is 150% better and brighter than the other wheels.

Time spent in town, time spent in developing community, getting involved in community activities and organizations create important contacts. My friends had a few contacts in well placed positions for their business which started their client base and created buzz within town.

As far as the nuts and bolts - the basic budgeting rule of thumb when doing anything in Jamaica is figure out what you'll need money-wise, then triple that amount. That'll bring you closer to what your actual investment might be.

Take into consideration too, if your business is tourist oriented, you really only have a four month high season in which to make the bulk of your money. Negril is not the bargain it used to be, far from it. You have to be very realistic about how you want to live there and how much its really going to cost.

If you are British you are subject to different immigration rules than non-Commonwealth country citizens are. If you are planning on living in Negril you'll need to learn what those rules are. In the case of a US citizen, we are not allowed to be on-island over 6 months - and we have to renew our tourist visa after 3 months. But in all cases you will need to apply and pay for a work permit that is renewable every year (you pay more and renew every 3 or 5). That's a huge process. I spent an entire day in Sav la Mar with my friend collecting tax compliance certifications alone - and then there's finger printing and a bunch of other financial reporting that needs to be compiled for the application package. In addition to the fee for the permit the "extras" such as finger printing cost as well...as will trips into Kingston and MoBay for different aspects of this process. I've always told my friend she should write a handbook on this process, she's got it pretty wired at this point. Jamaican bureaucracy can be difficult to navigate.

Like I said, I do not own nor do I plan to own and operate a business there. But some of the info I've given you is based on my experiences running a successful business here in the US for the past 22 years. Good luck!

[rastagirl777]

Sweets,

As a footnote, I lost count years ago of the number of people I have seen move to Jamaica, invest much more money than they anticipated, and went home empty handed. Most feel that Jamaica was to blame, but in reality it was their inexperience and lack of research that got them into trouble in the first place.
So true! Though I know quite a few foreigners who have had successful businesses in Negril...through a lot of hard work and a great deal of tenacity. None of these people made millions but all make a living. And like Rob said for everyone I know that has done this, there is at least one that has tried and failed. Research and community development are KEY.

[Sweets]

Hi Rob,

Thanks for your words of wisdom.

The boardies in this forum actually helped and guided me as a female solo traveller when I first visited Negril for which I am ever so greatful.

I frequently read the posts on this forum although Ive not done so for the past few months due to me relocating, moving country and setting up somewhere else.

I might be wrong, but I can recall threads from a year or so ago when boardies have discussed setting up their businesses in JA, but I cant remember who commented or what the name of the threads were, which is why I started a new thread. If I have become just slightly too familiar with this forum I apologize. I had to open a new account today because I could not remember my log in, so I know that this is a tourist orientated website.

When I thought about my idea, I instantly thought of negril.com and couldn't wait to hear the boardies who have had this experience to share their stories. Of course my business plan would not be based on the comments made here, it's just really interesting to hear how other people have made it or possibly failed -the thread I remember specificly mentioned how it is to set up your own business, not being from JA, and being a woman.

I apologize again if you found this thread inappropriate, I got excited :/

I appreciate your comment on that you have seen many people come and leave with nothing,I wouldnt necessarily set up my business for me to live in JA permanently for the rest of my life, it's a business idea that I want my friends who are ambitious and live locally to get involved in, since they dont have the means to set up their own just yet, but I would be there in the early stages til its up and running. If it proves successful Id probably allow my friends to 'buy' me out in the next 5-10 years.

[Sweets]

Rob and Rastagirl 777 many many thanks for your 2cents I really appreciate it!

...I believe that what Id like to start up is filling a void and would be profitable and me setting something up in JA is a mixture of things. I have got great, hardworking, loyal and ambitious friends in JA, Ive been thinking about how I could do something that would be profitable (-ish) for me, nothing that will make me rich bit give me a little something, as well as involving my friends and helping them to get to where they want to go and be who they want to be without just giving them money (they are far too proud!). Together I thought we could make this work. One idea is also that if I ever have as much money as Id like either through work or business ventures Id like to set up a charity that supports young men in JA with the skills and possibly funds needed to set up their own businesses. There is so much talent in JA but as you know, a lot of the time money is an issue when it comes to education and start-ups. I'm a bit of a dreamer, I confess, but what a lovely thing it would be even to be able to touch one persons life in a positive way.

In October my company is sponsoring me to gain an accountancy qualification which will keep me occupied for quite some time, so on the side of fulltime work and studyin -now in living in another country yet again, I will do as much research as I possibly can and fingers crossed it'll all work out ;)

[Rob]

Sweets,

Your thread is perfectly fine here and this does come up time to time as you said, but you just need to be aware that the info gathered here for the most part needs to be taken with a grain of salt. There are very few people in this forum who can honestly say that they have a thriving, longterm business in Negril.

As I mentioned, most here will only be able to give you second hand info. The comments may need to be corrected or expanded on in order to be useful. The above post from Rastagirl777 expands on my point.

The "runnings" she mentions is not something you will come to know by asking questions, but by simply living in Jamaica. If you do your research and spend time here before starting the business - you will pick this up automatically.

The budgeting aspect is not as simple as "triple that amount". If you do your research correctly, you should be very close to the actual investment needed. If you dont do the research so well, then maybe the "double or triple" concept may work, but that would lead me to believe your venture is doomed to failure if you underestimated your actual investment by over 200%.

Work permits are over us$1000 per year at present so you will need to be serious just setting up the business in the first place. Tax Compliance Certificates (TCCs) are nothing unusual, all businesses need them in Jamaica - Jamaican and foreign owned alike. All it means is that you have paid your share of taxes. Your accountant can handle all this for your business. If you cant get a TCC, then you have bigger problems than running a business... (grin)

As far as the fingerprinting goes, no one I know has had to do any fingerprinting to get their business started or their work permits. Possibly if you are starting a security company or similar business it may be required, but you will not find any references to fingerprinting in any of Jamaican government work permit documentation.

As mentioned, the best advice is research while you are here on your future trips before taking the plunge.

[Sweets]

Cheers' Rob and well done to an awesome new layout for the forum :)

[Rob]

Thanks Sweets!

[Ariana]

Hi Sweets! I think Rob and Rastagirl777 have given some great information. While I don't know if 6 years counts as a long term business in Jamaica or not, it's where I'm at. It's farther along then some and not nearly as far along as others. I moved down in 2005 and to be honest with you, I did not nearly as much research as I should have. Thankfully I was able to create a business that supports me, enables me to travel and live without taking on additional debt. That however wasn't the case at first. I grossly underestimated the amount I needed to live in Jamaica and how long it would take to build a business in Jamaica.

My first year in Jamaica I took on huge amounts of debt (that has since been paid back thankfully) because I really had no idea what to expect. I didn't live large by any means, but I wanted a place I felt safe, grilled windows, safe area, etc. I've never had AC nor hot water, neither has been much of an issue most of the time.

One bit of advice I would give is to really know who you are dealing with. In my experience vacation friends are rarely long term friends once you're down here or doing business. I've seen so many people get taken advantage of whether living or having a business here. It's really, REALLY hard to watch your business from a far, especially in Jamaica so if you are going to set up a business SI would suggest really investing the time and energy here to know how it runs and to be able to take all precautionary measures to protect it.

Sometimes I seriously wonder how I started a business here and how I made it into what it is. More than anything, I'm thankful for it and thankful that (hopefully) at some point if I decide to leave Jamaica it will be on my own terms and not because my business went bust.

Just make sure you enter all situations with eyes WIDE open, make people earn your trust and don't only know what you're getting into but WHO you're getting into it with. I think all of us that have business down here have made our fair share of mistakes, make sure you learn from your own as well.

Best of luck to you!

[rastagirl777]

"Tax Compliance Certificates (TCCs) are nothing unusual, all businesses need them in Jamaica - Jamaican and foreign owned alike. All it means is that you have paid your share of taxes. Your accountant can handle all this for your business. If you cant get a TCC, then you have bigger problems than running a business... (grin)" Tru dat. The friend with whom I did this scavenger hunt with used to pay an accountant to do this. Dude was a good accountant, except for this particular task - she was one form short each time. So, she saved a few bucks, does it herself, gets it done more quickly and efficiently too. Just spends an entire day in Sav is all. Lots of offices to visit.

"As far as the fingerprinting goes, no one I know has had to do any fingerprinting to get their business started or their work permits. Possibly if you are starting a security company or similar business it may be required, but you will not find any references to fingerprinting in any of Jamaican government work permit documentation." Let's see - I know two people well who own/operate their businesses and have to get fingerprinted each time they renew. Perhaps they need to talk to you Rob about how to avoid that particular step in the permit renewal. I'll suggest it. They both have a "way" of getting this done so it takes less time and hassle (but costs a few more $$)

Ariana, I was hoping you'd chime in here! And six years is long term and successful. What you spoke of regarding being taken off guard regarding the amount it costs to live there was what I meant by the "cliche" of tripling your budget (that and "how do you make a small fortune in Jamaica? Bring in large one."). I'm glad you elaborated on that because that happens to everyone I think.

Sweets, good luck with your endeavor.

[Rob]

I know a lot of people who have work permits and never have they been fingerprinted. The online requirements no where states that you need to be fingerprinted. I own my own business in Negril and have since 1995 (Negril.com) and have never been fingerprinted. If a few people are having to do that, then maybe they have some extenuating circumstances that deems this necessary.

One possible situation that comes to mind would be if they want to carry a firearm, where every gun owner is fingerprinted in that case - but that has nothing to do with a business/work permit. A second possible situation may be if they have some criminal history past that causes the Jamaican government to be extra cautious. But in this case I would think the government would simply deny the permit in the first place.

The comment that they have a "way" of getting this done makes me think that their is much more to this than we know. To anyone who knows Jamaica today (not 4 years ago, but today), they know that the days of offering a "tip" to get things done quicker is a thing of the past. I have experience with the past ways of getting things done and the present ways, and the story being relayed regarding the fingerprinting does not ring true based on everything I have known since 1995.

Whatever that case, please believe that from the experience living in Jamaica for over 15 years and knowing many dozens of situations of people getting work permits and starting businesses, there is no need to even think about getting fingerprinted when starting a business or obtaining a work permit.

And yes, those of us living here do laugh about the triple theory "cliche" - but that is generally referring to our knowledge of the hundreds of people we know who came here and failed in their plans, which was usually caused by a major lack of proper research in the first place...

There is a thread on the old board that was running earlier this year about permanent residency that goes into many of the details regarding living in Jamaica under various situations (including the fingerprinting):

http://www.negril.com/discus/messages/343814/348407.html

[rastagirl777]

I have to say here that the two friends I refer to have long standing businesses (one of whom has had her permit for over 20 years) so there's nothing "shady" about either business and neither requires a firearm (nor do either have one). The fingerprinting thing - well, all I know is that these to seem to "think" they have to do this and I can't speak further on that. The way they don't have to go to MoBay or Kingston to have this done is based on knowing someone and there's no "tip" involved, its a fee and its actually legit. Won't say more, if that can't happen anymore I'll be toast :)

[Rob]

This thread is a perfect example of what I mean by proper research.

[Blake]

And like Rob said for everyone I know that has done this, there is at least one that has tried and failed. Research and community development are KEY.

Hey, if it's only a 50% fail rate that's pretty good odds!

I've started 6 businesses in the US over the past decade and it's a hell of a lot of work, a lot of money is sunk into them, and it's ALWAYS a gamble no matter how much research you do.

You need a cocktail of the right people, the right location, the right concept, and the right customer base in order to turn a decent profit in a reasonable period of time.

The problem is people often will get the right location, the right customer base, and then their ego steps in and the concept and the people they hire to execute the concept are WRONG.

I wouldn't mind opening up an island business at some point in the future, but it would be after significant research and then after doing more research after the first batch of research is already outdated, and then it would probably involve just going to the casino and betting it all on black and if I win then I'll open a business on a beach. :p

Not to discourage anyone but the business world will chew people up and spit em out, you only hear about the successful ones in the long-term because otherwise it's bad for business!

I'm curious about one thing on page 1, is it still currently that US citizens have to leave every 6 months? Does that apply to business owners as well? One would think they'd want to support international business owners coming over and creating jobs and investing heavily.

[Rob]

Blake,

The number of "success" stories in Negril is far, far less than 50%. After we discussed this matter with other ex-pats on the island, the number seems to be less than 5%. Out of each 100 people we know who have tried it, maybe 2 or 3 make it. This puts the situation in a proper prospective.

US citizens can only stay in Jamaica for 6 months in any calendar year. That is whether you have a business or not. If you have a business and want to be a working part of it, the government expects you to do the proper thing and obtain a work permit or become a citizen of Jamaica. If you are "investing heavily", a work permit would be no problem, either in cost or granting. The permit system is set up to minimize the number of people who think they can come to Jamaica and take a position in a job that a Jamaican would be able to fill.

[Blake]

Blake,

The number of "success" stories in Negril is far, far less than 50%. After we discussed this matter with other ex-pats on the island, the number seems to be less than 5%. Out of each 100 people we know who have tried it, maybe 2 or 3 make it. This puts the situation in a proper prospective.

I hear ya, I was pretty skeptical of a 50% success rate given that we don't even have close to that in the US. Starting a business isn't easy and people will fail, that said I wouldn't mind trying to get one going over there, given that I've already started 6 successful businesses and I love gambling it all on the line.


Blake,
US citizens can only stay in Jamaica for 6 months in any calendar year. That is whether you have a business or not. If you have a business and want to be a working part of it, the government expects you to do the proper thing and obtain a work permit or become a citizen of Jamaica. If you are "investing heavily", a work permit would be no problem, either in cost or granting. The permit system is set up to minimize the number of people who think they can come to Jamaica and take a position in a job that a Jamaican would be able to fill.

So the work permit allows you to stay longer than 6 months? This would be crucial if I ever decided to open a business in Jamaica given that the first year is the most important and requires the most hands on approach.



A U.S. citizen may acquire foreign citizenship by marriage, or a person naturalized as a U.S. citizen may not lose the citizenship of the country of birth.U.S. law does not mention dual nationality or require a person to choose one citizenship or another. Also, a person who is automatically granted another citizenship does not risk losing U.S. citizenship.

Luckily you can get citizenship in Jamaica without renouncing your US citizenship, but then I'd have to go against my decision not to get married for the foreseeable future. :(

I'm not sure I could live day to day life without the greatness that is Amazon prime! Giving up a lot of luxuries to start over would be pretty rough.

[VVHT]

Sweets,

A couple years back I got the itch real bad to start something up. Best move I made was talk to Rob first, on his advice I spoke to others. I remember one memorable quote from Tom who used to run Pirates Cave. The secret to leaving Jamaica with a small fortune is to arrive with a large fortune and open a business!!!

Good Luck!

VVHT

[captaind]

Whereas I did have a water sports business on the beach from 1976 - 1986 I would not start one now. Remember that in those days Negril was a much more laid back place than it is now. Far less bureaucracy, competition etc.

My intention now is the farm my property and some leased land I have. I have always known that the real wealth of Jamaica is in the land. Right now hotels will buy all the "bumpy" bananas they can get. Peppers, tobacco, ginger etc are all good crops that always sell. Chicken and pork also. It goes without saying that farming is a full time job and having the family all working and sharing in the profit (if any) is of major importance. Two of Izel's grown son's live at the yard and now that we have water they can stay home and farm instead of going to the morass to grow food crops.

My son is a red plate taxi and my daughter is opening shop sometime later this year. Much different than being an ex pat

You need a well thought out business plan and a thorough working knowledge of how things work in Ja. Having successful people in your circle of friends doesn't hurt either.

As far as success goes ....... I know a lot of Jamaicans who start a business (shop) and fail. It's not just limited ex pats

cap

[goldilocks]

the real wealth of Jamaica is in the land.
cap

AMEN! Jamaica is blessed.