Business Licences are required by law for any person carrying on a trade, business, occupation or profession. To obtain a business licence, every person wishing to carry on a business is required to applyby completing the New Business Application Form and submitting it in duplicate to the Permanent Secretary of Finance.
It is important to note the following two points when it comes to obtaining a Business Licence.Firstly, where different places of business, stores, shops or other premises are operated in the name of one person or firm, a separate business licence shall be obtained for each place of business, store, shop or any other premises.Secondly, where a different trade, business, occupation or profession is carried on by the same person at one premise, a separate licence shall be obtained for each trade, business, occupation or profession that is carried on.
The Business Licence application process is open throughout the year. However, all Business Licences expire on December 31st of each year and must be renewed annually. Fees are clearly laid out and calculated based on a set fee schedule. The licence fee payable is prorated depending on the number of months remaining in the year. A licensed person who applies for a renewal of their Business Licence must do so as early as possible at the beginning of each calendar year.
The Licence fee payable for a Business Licence depends on two primary factors. They are the type of business and whether the person applying is a belonger or a non-belonger. For the Trades, Business, Occupations and Professions Licensing Act, a trade, business, occupation or profession is carried on by:
1) a belonger, if the trade, business, occupation or profession is at least 51% owned by one or more belongers; and
2) a non-belonger, if the trade, business, occupation or profession is at least 51% owned by one or more non-belongers.
Once an application has been properly made and the correct fee tendered, the Permanent Secretary shall within 15 days of any application, grant a business licence unless:
1) the applicant is a non-belonger who is not the holder of a work permit under the Immigration and Passport Act; or
2) the applicant is, under the provisions of this or any other law, disqualified from holding the licence sought.
Proof of an approved Business Licence Application should be presented by the Business Owner to the Inland Revenue Department for payment and processing. Once payment has been made, a Business Licence certificate is issued.The Business Licence should be prominently displayed on the premises of the business always.
Business Licences are not transferable. Everyonemust obtain their own licence to carry out a trade, business, occupation or profession. Additionally, if there are any changes with the circumstances of the business licence including a change of address, notice must be given in writing to the Permanent Secretary.
If any business that is currently holding a business licence closes, they are required to inform the Inland Revenue Department in writing and complete the ApplicationFor Closure Form.This will enable the Department to put a hold on revenue charges, so the business will not incur any further charges to the account.All outstanding fees on the business account would have to be settled prior to the business being closed in the system.
It is also possible for a business to forfeit their licence. If a licensee under this Act is convicted of any offence in connection with the conduct of the business licence, the court may order the licence to be forfeited and that the licensee be disqualified from applying for a new licence for a period of 3 years. No part of the licence fee which have been paid will be refundable.
There are some exemptions from the requirements of having a Business Licence. The Trades, Businesses, Occupations and Professions Licencing Act does not apply in the following situations:
1) Any trade, business, occupation, or profession licensed to be carried on as such under any other law without reference to this Act for the carrying on of which an annual licence fee is paid or payable under such other law. For example, Car Rental Operators do not require a Business Licence as they pay a different fee under a different Act.
2) Persons who do not carry on a trade, business, occupation or profession on their own account but are employed by some other persons.
3) the sale of fish, milk, meat, fruit or agricultural products by the producers thereof.
4) any corporation or body certified by the Permanent Secretary as having been formed for the purposes of social or public welfare, education, religion, charity, art or sciences and which applies its income or profits solely for promoting such purposes.
Where business licences are required, there are penalties for those who act in contradiction to the Act.Anyone committing any of the actions below is guilty of an offence and is liable on summary conviction to a fine of $2,500 or to imprisonment for a term of 3 months. In the case of a continuing offence a further fine of $250 will be payable in respect of each day the offence continues.
a) Anyone who willfully makes a false or inaccurate representation to the Permanent Secretary;
b) Carries on or attempts to carry on without a licence a trade, business, occupation or profession which is required to be licenceunder this Act; or
c) Carries on or attempts to carry on any trade, business, occupations or profession for which a licence has been granted in contravention of any condition or restriction contained in such licence.
The Inland Revenue Department wants to encourage all those in the General Public and business community to comply and apply for or renew their business licences for 2019. We want to thank all the law-abiding citizens who renew their businesses licences every year and we look forward to increased compliance in the New Year.For more information, please contact the Inland Revenue Department at telephone number (264) 497-8334 or email inlandrevenue@gov.ai . Also, like and follow us on Facebook @IRDAnguilla. Have a safe and enjoyable Christmas Season and a bright and prosperous New Year!
