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

[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/message...14/348407.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.

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