Small Business Development Act, 2009 (No. 24 of 2009)

1. Short title and commencement

2. Interpretation. PART II SMALL BUSINESS

3. Small Business.

4. Application for declaration.

5. Investigation by Minister.

6. Declaration of approved small business.

7. Incorporation or licensing.

8. Refusal to declare approved small business.

9. Appeals.

10. Monitoring and examination.

11. Changes of particulars of small business.

12. Notice of change of status.

1J. Revocation of declaration. PART III INCENTIVES AND TECHNICAL ASSISTAJ~CE

14. Incentives.

15. Granting of incentives.

16. Limitations on granting of incentives.

17. Disqualification for incentives.

18. Technical assistance. PARTIV ADMINISTRATION

19. Registrar.

20. Register.

21. Reports by approved small business.

22. Submission of audited accounts.

23. Annual report. 2'1. Small BUSiness Advisory Committee. PART V GENERAL

25. Offences.

26. Regulations, \,.

27. Amendments of Schedules. No. 24 of 2009. Small Business Development Act. 2009. Saint Christopher and Nevis. I assent, CUTHBERT M SEBASTIAN Governor-General. 26 th November, 2009. SAINT CHRISTOPHER AND NEVIS No. 24 of 2009 AN ACT to provide for the establishment ofa regulatory framework to facilitate the growth and development of sma 11 bll~ine~~f'~ anti to provide for related or incidental matters. [Published 26'" November 2009, Official Gazette No. 530nOOY.] BE IT ENACTED by the Queen's Most Excellent Majesty by and with the advice and consent of the National Assembly ofSaint Christopher and Nevis, by the authority of the same as folJows:- Part I Preliminary

1. This Act way be cited as the Small Business Development Slro rt tJrl c and comrucncernent Act, 2009 and shall come into force on such date as the Minister may by Order, appoint.

2. (1) In this Act, unless the context otherwise requires, lnrerpretauun. "Committee" means the Small Business Development Advisory Committee appointed by the Minister pursuant to section 24; "Minister" means the Minister responsible for Industry and Commerce; "Registrar" means the Registrar appointed pursuant to section 19. Part II Small Business

3. (1) For the purposes ofthis Act, a small business is 3 business (a) in which not more than twenty-five persons are employed; (bl whose annual turnover does not exceed two million dollars; 2 Small Business Development Act. 2009 - 24. (c) whose net assets or paid up capital do not exceed one million dollars; (d) which is locally owned; (e) which is not more than twenty-five percent owned or controlled by a compuny whose annual turnover and net assets or paid up capital do not exceed the annual turnover and net assets or paid up capital mentioned in paragraphs (h) ann (c) respectively or by a subsidiary of that company or by a subsidiary of a larger group of companies; (t) the composition of whose board of directors is not controlled by a company whose annual turnover and net assets exceed the annual turnover and net assets mentioned in paragraphs (b) and (c) respectively; and (g) has no agreement for the purpose of fees on a continuing hasis for managerial or other servir es to persons who are not nationals of Saint Christopher and Nevis or other states of the Caribbean Community and who are not resident in Saint Christopher and Nevis, where those services do not form part of the normal business operations of the enterprise. (2) For the purposes of subsection (l) "Caribbean Community" means the Caribbean Community established by the Revised Treaty uf the Chaguar amas Establishing the Caribbean Community including the Caricom Single Market and Economy signed at Nassau Bahamas on July 5, 2001; "company" has the meaning assigned to it by section 2 of the Companies Act, 1996; "control of the composition of the board of directors" has the meaning assigned to it by section 3 (2) of the Companies Act, 1996; "locally owned" means (a) a company which is not under alien control within the mearung of section 6 of the Aliens Landholding Regulation Act, Chapter 102; or (b) a business ofwhich not more than one third of the assets are under the control of a person who is not a national or who is not licensed to undertake business , .J Small Business Development Act, 2009 - 24" under the Licenses on Businesses and Occupations Act, 197L

4. (1) A small business may apply to the Minister for a Appucauon for dec larution declaration of the business as an approved small business for the purposes of this Act. (2) An application for a declaration as an approved small business shall be in the Form I set out in the Third Schedule and shall be accompanied by (a) a certificate of incorporation issued pursuant to the Companies Act, 1996 or a business licence issued pursuant to the Licenses on Businesses and Occupations Act 1972; and (b) a statutory declaration In Form II set out In the Third Schedule verifying the particulars specified in subsection (3), (3) The particulars referred to in subsection (2) (b) ale (a) the name, residential address and occupation ofeach shareholder and director; (b) the number of shares held or to be held by each shareholder Ul the company or business to which the application relates: (c) the names of all other companies in which the shareholders and directors referred to in paragraph (a) are also shareholders or directors. and the extent of any sharenolding; (d) the type of business and the location; (e) the actual or estimated investment in plant and equipment; (1) lbe number of pel SOilS employed or to be employed in the business; (g) the estimated annual income of the business; (h) the date of commencement of the business or the date on which the business is hkely to commence, as the case may be; (i) and such other information as the Minister considers necessary to enable him or her to make a decision pursuant to section 6.

5. (1) Upon receipt of the application by the Minister, he may fOlcsligal/llf; h) cause an investigation to be carried out to verify any statement contained 'vlJnlstcr in the application. 4 Small Business Development Act, 2009 - 24. (2) A person who refuses to answer any question for the purposes of an investigation under the Act, or who knowingly gives any information, which is false or inaccurate commits an offence. Dec laran on of 6 (1) Where an application has been made pursuant to approved sma)) section 4 and the Minister is satisfied that the business business. (a) has met all the requirements for a small bus mess as set our in section 3( 1); and (b) is engaged in any of the activities listed in the First Schedule; the Minister shall within ninety days of the submission of the application declare the business to be an approved small business subject to any conditions which he or she m"y specify (2) A declaration made by the Minister pursuant to subsection (1) shall be published in the Official Gazette, (3) The Registrar shall upon payment of the registration fee specified in the Second Schedule issue a Certificate of Registration to any small business which has been declared an approved small business pursuant to subsection (1). Incorporation or 7. (1) A declaration pursuant to section 6 may not be made with l,cen~,ing respect co a small business unless that small business is incorporated m accordance with the Companies Act, 1996 or is licensed pursuant to the Licenses on Businesses and Occupations Act, 1972. Refusal to 8. Where the Minister refuses to declare a business as an declare approved approved small business pursuant to section 6, he shall notify the small business business of the decision and the reasons therefor in writing within ninety days of the submission of the application pursuant to section 4. Appeals 9, A small business may, within one month of the receipt of a notice pursuant to section 8, or the publication uf a revocation Order against his business pursuant to section 13, appeal against the decision of the Minister to a Judge in Chambers. Momtoring and 10. The Minister shall examine or cause the examination of an examination. approved small business to be carried out whenever he or she considers it necessary for the purpose of determining whether it still qualifies as a small business. Changes to 11. Where, after the declaration of approved small business status D3r!jcuJars of pursuant to section 6, any change is made or occurs ill <lll)' of the small buslrJc.,s. particulars supplied to the Minister at the time of the application for status, the small business shall, within 21 days after the change or any longer period as the Minister may allow, forward to the Minister, a statement in writing in the Form HI set out in the Third Schedule, specifying the nature and date of the change. 5 Small Business Development Act. 2009 - 24.

12. Where an approved small business ceases to operate as a small Norce of change of status. business or ceases to satisfy rhe requirements of this Au or the regulations, that business shall by notice in writing within 120 days from the date of cessation, inform the Minister of that fact.

13. (l ) Where Revocaton of declaration. (a) it is discovered at any time that the particulars furnished by an approved SlTI2l1 business at the time of making an application pursuant to section 4 were false in any material particular or were likely or calculated to decerve; (b) an approved small business interferes with or prevents an inspection or the submission of information required pursuant to section 15(3) or fails or refuses to submit audited statements of its accounts to the Registrar pursuant to section 22; (C) it is found that the approved small business has failed to commence operations within twelve months of the issue of a declaration as an approved small business; (d) it is found that the approved small business is III breach of any condition upon which the declaration was made; or (e) the approved small business has failed, neglected or refused to submit an annual report as required by this Act the Minister may, by Order published in the Official Gazette revoke the declaration of approved small business status. (2) The Minister shall by Order published in the Official Garette revoke the c1f'r!ilraticln of approval of an approved small business where (a) he or she is satisfied that a small bus mess is no longer a small business as defined in section 3; or (b) the Minister is notified pursuant to section 12 that the small business has ceased to operate as a small business. (3) Where the Minister has revoked the approval in respect uf a small business pursuant to subsection (1) or (2), the small business shall pay to (n) thl' rnmptmllpr of Inland Revenue: (b) the Comptroller of Customs; 6 Small Business Development Act, 2009 - 24 any sums which but for section 15 would have been payable as income tax or customs duty. (4) Notwithstanding subsection (3) Cabinet may. where it is satisfied that the payment of any sums due under that subsection would cause undue hardship or that it is expedient to do so, waive the whole or part of those sums payable by the small business, PartID Incentives and Technical Assistance Incentives 14. In order to encourage the growth and dcvc lupmcur uf ,w approved small bus mess, the Minister may, upon application by an approved small business, recommend to Cabinet to grant the approved small business any of the following incentives (a) a concession on consumption tax: (h) :l reduction on income tax for a minimum of the first three and a maximum of the first five years of establishment or reconstruction of the small business: (c) relief on income tax by way of an allowable deduction on any monies borrowed from any financial institution including any uank, nUIl-uulli 01 credit union: (d) export incentives; (e) a rebate on corporate tax: (f) an exemption from or reduction in customs duty on inputs imported for use in the small business; (g) an exemption from or reduction in customs duty on any plant, machinery, equipment or motor vehicle imported for use in the small business; and (h) a reduction of property tax of up to seventy-five percent pursuant to the Property Tax Act, 2006, in respect of any land and any building used in the operation of the approved small business. Granung of 15. (I) Notwithstanding the provisions of any other enactment Ihcenll\CS and subject to sections 10 and 17, Cabinet may, subject to any conditions which may be specified. grant any or all of the incentives specified in section 14 to an approved small business where it is satisfied that the approved "mall business is in i:I field considered to be a priority area in accordance with subsection (2) and has met at least five of the following criteria: (a) it has produced its strategic plan or business plan and financial projections for the next twenty-four months; 7 Small Business Development Act, 2009 - 24. (b) it has adopted the global industry standards and compliance methods relevant to that industry; (c) it has shown equity capital improvements; (d) it has in the immediate preceding year made serious efforts to become more efficient, as measured by financial ratio indicators: (e) it has achieved significant gruwth in the last two years of Its operation measured by (i) production levels; (ii) revenue performance; (iii) increase in market share; and (iv] other growth performance indicators: (D it has combined or intends to combine with another small business to share relevant services or with respect to the bulk importation of raw materials or other goods; (z) it h:'!"crented Mlr\itinnal employment within tht' <mall business; (h) it has utilized or intends to utilize new skills and technologies; (I) it has demonstrated a strong likelihood to generate new investment, products, processes, employment or production capacity. (2) The priority sectors for the establishment of small businesses are as specified in the First Schedule. (3) An approved small business that has been granted incentives pursuant to subsection (I) shall permit the Minister or his designated agent to inspect, at all reasonable times, the books, records and accounts of the business. (4) Any incentives granted to an approved small business under this section shall terminate if the business ceases to qualify as a small business.

16. Where a ny approved small bus iness is one of a group of Limita u on- companies or is associated or affiliated with or controlled by another grl.lntlngof .nccntiv es body corporate, only one such approved small business shall be eligible to rece ive :lny of the incentive, ,pee-died in section 14

17. (l) An approved small business shall not be entitled to apply 1)I'ljll:IIIII"III')C' II)!" incl,."ntiH":; for or qualify to receive any incentives pursuant to section 15 if It is lt1 receipt of fiscal incentives pursuant to the Fiscal Incentives Act. 1974. 8 Small Business Development Act. 2009 - 24. (2) An approved small business shall not be entitled to receive incentives ifit is not engaged in environmentally sound operations to the satisfaction of the Minister responsible for the environment. Technical 18. For the purpose of giving effect to the objects ofthis Act, the assrscance. Minister may cause technical assistance to be given by a prescribed government department, government agency, statutory corporation or private sector organisation to an approved small business in any of the following areas: (a) assistance with management, accounting and production techniques; (b) the development of product design; (c) the development of package and label design; (d) the provision of assistance in the development and maintenance of quality control; (e) the provision of marketing and storage assistance for the local and export market; (0 the provision of assistance to businesses seeking to participate in overseas trade shows; (g) the preparation of business plans to facilitate the initial financing and management of the business; and (h) any other area that appears to the Minister to be necessary to start, continue or expand specified operations in the approved small business. Part IV Administration Kegjslrar. 19. The Minister shall designate a person to perform the functions of Registrar of Small Businesses. Register 20. The Minister shall cause to be kept, a register to be known as the Small Business Register and in which the following information on approved small businesses shall be entered; (1) the elate of the application for a declaration pursuant to section 4; (2) the name and address of the approved small business; (3) the date of the declaration, if any by the Minister; (4) the conditions, if any, upon which the declaration was made; and (5) such other information as the Minister may require. 9 Small Business Development Act. 2009 - 24.

21. (I) The owner, manager, or chief executive officer of an Reports by approved small business shall maintain proper books of account and approved sma II business. other relevant records and shall submit to the Registrar an annual report in such form as the Registrar may approve.

22. Each approved small bus mess shall within SlX months after Submission of the end of its financial year submit to the Registrar, audited statements of audited accounts Its accounts which accounts shall be audited by an auditor in accordance with generally accepted international auditing standards.

23. (I) The Registrar shall submit to the Minister, an annual Annual report. consolidated report covering activities and developments within the small business sector together with the comments of the Committee on the Registrar's Report. (2) The Minister shall submit the report submitted to him, pursuant to subsection (1) to the National Assembly within three months of the date of receipt from the Registrar. 24 (1) With the approval ofthe Cabinet, the Minister shall appoint Small Business a Committee to be called the Small Business Advisory Committee to advise Advisory Comrniuce him on matters relating to the small business sector. (2) The Committee shall consist ofnot more than nine persons representing the relevant Ministries and non-governmental agencies and shall include (a) representatives of the small business sector; and (b) the permanent secretary in the Ministry responsible for Industry and Commerce who shall be an ex officio member of the Committee. (3) The members of the Committf'f' sha ll hI' ;lppnintf'c1 for a period not exceeding two years and shall be eligible for reappointment. (4) A member of the Committee shall not serve for more than two terms. (5) The person designated by the Minister to perform the functions of Registrar of Small Businesses shall be the Secretary of the Committee. (6) The Committee shall regulate its own procedure. PART V General

25. (1) Any person who commits an offence under this Act for which no penalty is provided is liable on summary conviction to a fine not exceeding five thousand dollars or to imprisonment for a term of 12 months or ro both such tine and imprisonment. 10 Small Business Development Act. 1009 - 14 (2) Where an approved ",man hll<;me<;" commit<. an ()[fenet' pursuant to this Act and a director or officer of the business knowingly authorised, permitted or acquiesced in the commission ofthe offence, the director or officer ~ho commits an n[[POi'e :mcl is liahle on summary conviction to a fine not exceeding five thousand dollars or to imprisonment for a term of 12 months or to both such fine and imprisonment. (3) Where any statement that is required to be furnished pursuant to this Act contains any matter that is false in any material particular to the knowledge of the person signing it. that person commits an offence and is liable on summary conviction to Imprisonment for 12 months or to a fine not exceeding five thousand dollars or to both such fine and imprisonment

26. The Minister may make Regulations generally for the effective implementation of this Act. '\rncTldment" ot Z7 The ylinlster may, by Order, amend the Schedutes to this Act. Schedule,. SCHEDlIJ"ES Ftrst Schedule ((Section 6(1)(b), Section 14(2)) Priority Activities L Tourism related services (excluding hotels and restaurants)

2. Transport and storage .3. Information, communication and technology activities

4. Agl iculture, Iuresuy arul related serv ice activ ities

5. Arts and cultural activities

6. Construction services

7. Entertainment services

8. Fishing and Mariculture (including the operation of fish hatcheries and fish farms and service activities incidental to fishing),

9. Manufacturmg 10, Personal care services 11 Repair of personal and household goods and vehicles

12. Sanitation, sewage and refuse disposal services 13 Sporting and recreational services

14. Financial services (excluding qualified entities providing services to non-re~icif'nrs only, of St. Kitts and Nevis) 11 Small Business Development Act. 2009 - 24

Second Schedule (Sel,;liuuu(3 }) Registration fee for approved small business status $100.00.

Third Schedule Small Business Development Act Form I (Sections 4( 2)) APPLICATION FORAPPROVED BUSINESS STATUS 1. Name including the corporate 2. Company Incorporation No. name of business or Business Licence No. 3. Type of Business 4. Principal Place of Business 5. Registered office of company 6. DIRECTORS L Name (First. Middle 11. Residential Address Ill. Occupation and Surname) ------------ - --- - - - IV. Any fanner name v. Any former Business VI. Present nationality Occupatiun (if all y) VlI. Nationality of Origin VIll. Signature 1. Name (First. Middle II. Residential Address Ill. Occupation and Surname) ........................................... r---.------- . iv. Any former name v. Any former Business VI. Present nationality Occupation (ifany) .................................................. . . VII. Nationality of Origin Vl1l. Signature / / ........... , , . 12 Small Business Development Act, 2009 - 24. r. Name (First, Middle n , Residential Address m. Occupation and Surname) '='='~,=:~~'-~:""-=:... = .. ~=. P, · .......••.. · . iv. Any former names v. Any formerlsusiness VI. Present nationality Occupation (if any) ._-_.,------_. Vll. Nationality of Origin __ .. ~-- ---.- Vll1. Signature 7. SHAREHOLDER(S) i, Name (First, Middle ii. Residential Address iii. Occupation and Surname) -~ .. ~.= . = :.. iv. Any former names ':~:.:::~.::..­ v. Any forrnerBusiness vi. Present nationality Occupation (if any) . - VlI. Nationality of Origin viii. Signature 1. Name (First, Middle II. Residential Address iii. Occupation and Surname) IV. Any former name v. Any former Business vi. Present nationality Occupation (if any) = ..... :~~:: ....:=::.:"":.:...c--...-.:.::..... ~.: .... ~=.:: ... ...................................... _~-~ vu. Nationality of Origin viii. Signature 1. Name (First, Middle II. Residential Address iii. Occupation and Surname) IV. Any former name v. Any former Business vi. Present nationality Occupation (if any) vn. Nationality of Origin viii. Signature 13 Small Business Development Act, 2009 - 24. 8. Estimated investment in plant and equipment. 9. Number ofpersons employed. 10. Estimated annual income of business 11. Names of all other connected companies referred to in section 4(3)(c) 12. Date ofcommencement of business or dateonwhich the business is likely to commence. 13. Signed ................................................................... Director/Secretary Fom111 (Sections 4( 2)) Statutory Declaration L .~_______ ._. ~ __ hereby declare on oath that the information contained in the above form is true and conect to the best of my knowledge information and belief. Director/Secretary Sworn before me At On the . ._. . day of . ~ 20. Justice of the Peace Form III (Section II) STATEMENTOFCHA.'lGE To the Minister In accordance with section ... of the Act, I/We hereby give you notice of the following changes which have been made or have occurred in the particulars or information supplied to you at the time of the application for approved small business status. 14 Small Business Development Act, 2009 - 24. Nature of Business Particulars of Change 1. Name of Business 2. Company Incorporation No. 3. Type of Business 4. Principal Place of Business 5. Registered Office of Business 6. DIRECTORS i. Name (First, Middle 11. Residential Address in. Occupation and Surname) iv.Any former name v. Any other Business VI. Present nationality Occupation (if any) VII. Nationality of Origin Vll!. Signature 7. SHAREHOLDER(S) i. Name (First, Middle 11. Residential Address 111. Occupation and Surname) T C -,.. • •••••••• r ' •••••• >.. . :...:....::..- I--....:..::...:...:.:~ ~_:.::_:_::~ ,: ::::::,:" ,. '_~.:....:...:.:.:... IV. Any former name v. Any other Business VI. Present nationality Occupation (if any) ......................... ,........................ , ••••••••••••••• +, , .. 8. Names of all other connected Signed companies referred to in section ... oftheAct Director/Secretary PATRlCE NISBETT Deputy Speaker Passed by the National Assembly this 21" day of October. 2009. JOSELLOYD Clerk 0/ the Naliollal Assembly GO\ER~~rF.·\T PRI~nR\ ST KITTS \\ I