The Legal and

Regulatory Framework
Open innovation Business Registration

Elements of
Intellectual property the legal and Tax obligations
Regulatory
Framework

Labour laws
Environmental
stewardship

International Standards and

regulations

In order for a venture to operate effectively , there needs to be

a proper and regulatory framework in place . The following are
a few of the more common framework that entrepreneurs
should be fairly knowledgeable about or at least be aware of:
 Lesson Objectives
1.Discuss the importance of observing legal and regulatory practices
in operating a venture;

a)Registration of a venture.
b) INDUSTRIAL,PERSONNEL/ Labour laws-( property tax , income tax , GCT ,
HR POLICIES , COLLECTIVE BARGAINING ..

(c) Tax obligations.

(d) International Standards and Regulations (ISO Standards); Duty of Care

(Occupational
Safety and Health Administration (OSHA) and Hazard Analysis and Critical
Control
Points (HACCP).
(e) Environmental stewardship.
(f) Intellectual property.
(g) Open innovation.
The legal and Regulatory
Framework

1.Registration of the
business
The process for registration should not be a lengthy
are an expensive one. It should promise security when
carrying out contracts and help business owners to
access credit when needed … Let us examine the
typical procedures for the three forms of Business
Ventures.
Registration of the Business
A business must be registered in order to
be considered legitimate and legal.
Sole Proprietorship
A sole proprietor will have to carry out the
following tasks:
1.Choose a unique business name and submit it to
the Companies Office of Jamaica (COJ) for approval.
At COJ you then request a Name Search from the
Registrar. This should ensure that there is no other
business with the name that it intends to register.
In Jamaica the Registrar is called the Companies
office of Jamaica.

2.Fill out the Business Registration Form (BRF1

form)
Sole Proprietorship
3. Submit a document that verifies your
current address. This may be a utility bill or
an instrument of identification such as a
passport.
4. Submit your Tax Registration Number
5. Pay a Registration Fee.
Partnership
1. Request a Name Search from the Registrar.
This should ensure that there is no other
business with the name that you intend to
register.
2.Fill out the Business Registration Form.
3. Submit documents that verify the current
address of each partner. This may be a utility
bill or an instrument of identification such as
a passport.
Partnership
4. Submit the Tax Registration Number(TRN)
for each partner.
5. Submit any relevant professional
certification. For instance if the business is a
Law Firm, there is need for documents that
will prove that the partners are authorized by
the state to practice.
6.Pay a registration Fee.
Company
1. Complete a Name Search and a Name
Reservation form.( Companies Office of
Jamaica).

2. Fill out the Business Registration Form. Each

director must sign this document and in
addition, the person who will verify that the
information is true must affix his/her signature.

3.Submit a Memorandum of Association and an

Article of Association.
Company
The Memorandum of Association or MOA
is the legal document that has to be filed with
the registrar of companies at the time of
incorporation of the company. It is often
called as a memorandum and is comprised of
fundamental conditions on the basis of which
a company operates. It is the document that
governs the relationship between the
company and the outside.
Company
Articles of association are a document that
specifies the regulations for a company's
operations and defines the company's
purpose.
Memorandum of Association is a
document that contains all the
fundamental information which are
required for the incorporation of the
company. Articles of Association is a
document containing all the rules and
regulations that governs the company.
Registering a company
4.Present documentation that has been
issued by the government that identifies the
principal director and the person who has
verified the information in the form.
5. Pay a registration fee.
Business Registration
OTHER REQUIREMENTS :
OBTAINING RELEVANT LICENCES AND PERMIT:
Depending on the type of business being
operated, the Entrepreneur may need to obtain
special licences and permit .
He/She will also need to apply for a Tax
Compliance Certificate (TCC).

Opening bank : A clear demarcation

between the personal and business affairs of
the entrepreneur is made when a business
bank account is opened.
Benefits of Registering a New
Business
It will enable you to open accounts at
financial institution/ apply for credit cards.
The business will be provided with an identity
and image when it is registered.
When accessing loans, it helps to satisfy
requirements.
It enables continuity
It facilitates valuable arrangements between
the business and its suppliers.
Benefits of Registering a New
Business
The business is able to make statutory payments on
behalf of workers.

Registration can build customers confidence as

well as strengthen business to business
relationships as the business is seen as having
legitimacy.

For Limited companies registering a business

provides protection from personal liability

makes the business eligible for govt contracts

2.Labour Laws

A thorough knowledge and understanding of

the Labour Laws of the territory in which
your business operates , is crutials. The laws
promotes professionalism and reveal the
ethos of your business. Bear in mind that the
way human resources are managed can
make or break a business.
 Labour Laws
Every business has a:
1. Moral Responsibility to workers.
2. Legal Responsibility to workers
3.Social Responsibility to workers
Labour Laws
Labour laws are intended to regulate
relationship between employers and
employees rights; It outlines the obligations of
the business to the employees .

Labour laws cover issues such as employee

rights; health and safety;child labour;
collective bargaining , maternity and paternity
protection; hours of work , severance
benefits, conduct in the workplace, leave ,
equal oportunities , diversity and
discriminations among others.
Labour Laws In Jamaica
The Trade Union Act ,1919
The Trade Union act outlines all the steps
that must be followed by employees if they
wish to become members of a Trade Union. It
outlines procedures for incident such as
grievances, bargaining and industrial
disputes.
Labour Laws
Labour Relations and Industrial
Disputes,1975
This act outlines the rights of workers as
members of a Trade Union and when there is
industrial action. Workers cannot be
forbidden to be unionized nor participate in
the activities of their respective unions at
appropriate times.
Labour Laws
Employment(Termination and
Redundancy) Payment Act,1974
This act speaks to all aspects of Redundacy.It
covers:
Procedure for calculation of Payments
Terms of qualification for Redundancy
Minimum standards of Payments
Labour Laws
Holiday with Pay Act,1974
This act speaks to the conditions for
entitlement of paid vacation leave and sick
leave. A worker earns vacation after working
for a specific period. Vacation leave cannot
be granted to an employee during a period
when notice of Termination of
employment has been given.
Labour Laws
Minimum Wage Act,1938
A minimum wage is set for workers in the
Labour market. This amount is set and
revised based on the economic condition of
the country and in adherence to the
pursuance of current government policies.
The minimum wage is Jamaica is
$13000/14000 for 40 hour work week.
Labour Laws
Maternity leave Act/Paternity ,1979
Maternity Leave Act of 1979, which makes
provision for the prohibition of discrimination
against pregnant women. Employers must
comply with the minimum standard that are
set for maternity leave. This is geared at
promoting the welfare of females in the
workforce and their childrens .
Entitlements :
● 3 Months with pay

● Female employees are entitled to maternity

on no more than three occasions.

Maternity leave Act,1979
To qualify for maternity leave, a woman must
be 18 years or older, must be employed to
the organization for no less than 52 weeks
prior to the date leave begins, and must have
inform her employer of her pregnancy in
advance of the time she intends to take leave.
Tax Laws
Employers must take consider the following tax
requirements

1. Income tax :It is money collected as tax from Income and

Profit or gain at the rate specified for each year of assessment.

2. General Consumption tax:General consumption tax

(GCT): GCT is a value-added tax (VAT), and the standard
rate is currently 15%. Higher or lower rates of GCT are
applicable to certain goods and services.

3. Property Tax: Property Tax is a charge levied on all real estate in

Jamaica and is imposed by the Government to generate money for
public purposes.
Industrial Relations
The term Industrial Relations speaks to the interactions and
relationships between management and employees. The
Trade Union (which represents employees) and the
government will play an important role in these interactions.

The Trade Union seeks to protect the rights and interests of

its members. The government is ultimately responsible for
ensuring that the economy is stable.
This means that it must make certain that good industrial
Relations are being maintained.
Industrial Relations
Collective Bargaining and the Process for the
Settlement of Disputes.
Collective Bargaining
Collective Bargaining is a process in which the workers' representative
and management negotiate in order to arrive at an agreement on the
terms and conditions of employment. Workers may decide that they
want an increase of 40% in gross wages. Management may decide that
they are willing to give only 5%. A representative of the Trade Union
that the workers are a part of will meet with management so that the
Collective Bargaining Process can take place.

The Industrial Relations Act speaks to the rules regarding the

recognition of the workers' Trade Union by the employer, the sending
and acceptance of an invitation to negotiate, the orderly conduct of
negotiations and the call for Conciliation where there is no agreement
within a given
time.
Human Resource Policies
The start up of venture must note carefully the regulations
for business venture under the human resource.Human
resource policies are written rules and guidelines that direct
the behaviour of employees and employers .

Resources policies provides guidelines for hiring, work

processes, compensation, leave, training, promotion, work
environments, termination and other important functions. HR
policies also outline how an organization will treat its people and
property.
They’re developed by HR managers with the help of company
management. It’s important to enumerate the policies before
issues arise so you know how to respond.
 Settlement of Disputes
Management and the employees' representative should agree on the
procedure for the settling of disputes. It must be in writing and state the
level at which an issue must first be raised. The time limit for each stage
of the procedure must be set. Industrial Action must not be named until
all other routes have been exhausted and there is no success.

Individual Grievance Procedure

1. Worker should seek to have the matter resolved by raising the issue with his/her
supervisor. If there is no success…
2. Worker should take the matter to the Head of the Department. He/she may be
accompanied by the Union's Staff Representative. The complaint should be in writing. If
there is no success.
3. Worker seeks redress from the Manager/Employer. It is advised that he/she should
be
accompanied by the Union's Staff Representative. If there is no success.
4. Worker may agree to Conciliation. If there is no success.
5. The matter is brought before the Industrial Dispute Tribunal (IDT) for Arbitration.
HR POLICIES
● Employee punctuality and attendance policy. ...
● Health and safety policy.
● Pay and timekeeping policy.
● Meal and break policy. ...
● Leave and time off work policy.
● Employment classifications policy.
● Non-discrimination and anti-harassment policy.
● DRESS
● Standard of conduct
Benefits of observing labour
laws
● Ensuring that proper policies are developed and
observed regarding categories of workers.

● Ensuring that child labour is prevented

● Paying workers minimum wage or above

● Ensuring that workers are protected eg..unfair

dismissal , harassment , safety

● Ensuring that workers are not discriminated

against based on age , sex gender
Class Work
1. What does registering a business mean. 3
marks
2. Describe the registration process for a Limited
company in your country. 6 marks.
3. A classmate of yours made the following
statement: “ Registering a business is a waste
of time. It is a way that the government has
devised to swindle money from its citizens''.
Advise your classmates of THREE reasons for
you disagreeing with that statement. 9marks
4. 4. Identify two labour laws in Jamaica and
explain the importance of each. 4 marks
3. TAX OBLIGATIONS

Managing tax obligations is key for any business to thrive in

Jamaica. In this guide, we will provide you with important
information about tax registration, incentives for businesses,
consequences of non-compliance, and much more. Read on
to learn what you need to know.
TAX OBLIGATION
❖ A Tax is a compulsory contribution to state

revenue, levied by the government on

workers' income and business profits, or

added to the cost of some goods, services,

and transactions.
Taxes are used to:
Raise revenue that will be used for public
expenditure.
Pay National Debts
Provide benefits for the poor. E.g. weekly
food stamps.
Protect infant industries
Reduce negative externalities. E.g. pollution
Discourage the use of demerit goods
such as cigarette ect..
 Taxation
Through its Tax Regulatory Framework, the
government should ensure that its objectives
of optimal production and growth are
achieved, not at the expense of any
particular group. There must be fairness and
balance.
Features of a Good Taxation
System
1. Equity- Taxes should be levied according
to a person’s ability to pay. If this is done,
then the rich will pay more than the poor.
2. Simplicity- The system of taxation must
be simple to understand. Complexities are
like repellant. It will discourage rather than
encourage compliance.
3. Convenience- There must be designated
places at which each type of tax is to be paid
and these locations must be convenient to
the taxpayer.
Features of a Good Taxation
System
4. Efficiency- The system must be an efficient
one. Taxes must be used for their designated
purposes and should be inescapable.
5. Flexibility- The system must be so designed
that if the conditions and needs of the economy
change, it can be adjusted.
6. Transparency- Persons must be able to view
the elements of the system. No information as to
who should pay a particular tax and how much,
should be hidden. Tax payers must also be able
to see how their money is being used.
Features of a Good Taxation
System
Taxes paid by some small and medium sized
enterprises in the caribbean.
National Housing Trust,
Property Transfer Tax,
Education Tax,
Social Security Contribution ,
Stamp Duty
Corporate Income Tax,
Tax on Interest
Asset Tax,
Vehicle Tax,
Value Added Tax
Property Tax.
 Tax Registration Process
Step 2:
Step 1:
The Business Must The Business applies
be Register with the for its Taxpayer
Company office of Registration Number
Jamaica ( Registrar from the Registration
of Companies ) Authority
Step3: The business register with the authorities for the
various statutory deductions :

● Income Tax
● Education Tax
● National Insurance (NIS)
● National Housing Trust (NHT) Contributions - Register with NHT
● Human Employment & Resource Training (HEART) Fund Contributions

Business who are involved in taxable activity must register with the tax
authorities. The GCT Collected must be paid over to the tax Administration.
 Tax incentives form a part of the tax code of the country.
They take the forms of exemptions and deductions as
they relate to the amount owed to the government and are
designed to encourage particular economic activities.

Each caribbean territory develops a tax code that it

believes will help its county meets its objectives.

Jamaica grants relief from taxation to persons who have been approved under the
following incentive legislation:

1. The Urban Renewal (Tax Relief) Act.

2. The Income Tax Act (Junior Stock Market Companies).
3. The Income Tax Relief (Large-Scale Projects & Pioneer Industries) Act.
4. The Bauxite and Alumina Industries (Encouragement) Act.
5. The Charities Act.( Tax incentives for charity organizations
6. Income tax for micro.small and medium enterprises (MSMEZ)
7. The Special Economic Zones (SEZ) Act.
 Tax incentives In Jamaica
1. Special Economic Zone : Is an area in which laws and regulations
concerning business operation are different from those for other
businesses operating outside of the area . SEZ attracts investments
both foreign and local . Under the SEZ Act , a developer or occupant can
receive a reduced rate of income tax, property tax , transfer tax relief ,
GCT tax relief , and custom duty relief .

2. Urban Renewal Tax-

The Urban Renewal (Tax Relief) Act provides tax incentives to persons
approved under the Act in connection with undertaking programmes of
development in areas designated as special development areas, with a
view to improving or restoring them.

The tax incentive provides certain tax benefits, including relief from
income tax on rental income and interest earned by an investor in an
Urban Renewal Bond. There is also exemption from stamp duty and
transfer tax on the transfers of property.
TAX Incentives in Jamaica
3. The Income Tax Act (Junior Stock Market Companies)
A company listed on the Junior Stock Exchange ( Subject to certain conditions being met) is eligible
for full exemption from income tax on their profits in the first five years from the date of admission to
the Junior Market, with a 50% exemption from income tax on their profits in next following five years.

4. Productive inputs relief (PIR)

There is relief from customs duty and additional stamp duty on the importation of certain ‘productive
inputs’ that are directly used in the ‘production of primary products’ or the ‘manufacture of goods’. In
addition to the manufacturing and agricultural sectors, relief is also granted on certain products
imported for use in the tourism, creative arts, and healthcare industries.The relief is subject to the
proviso that imported items are not available in adequate supplies from a local manufacturer or from a
manufacturer within the CARICOM Common Market area or are not otherwise prohibited from
benefiting from this relief.
4. International Standards
and Regulations
In the world of Business , a standard is a
mark of quality that organizations must
attain. With the advent of globalization,
there are international standards that are set
by specific authorities that must be met by
countries or groups of countries that wish
to engage successfully in international trade.

The ‘cake’ is there for taking and each

organization is invited to get as many slices
as possible. However , this is easier said
than done.
 What is International
Organization for
Standardization (IS0 )?
The International Organization for Standardization (ISO) is an
international non-governmental organization made up of national
standards bodies; it develops and publishes a wide range of
proprietary, industrial, and commercial standards and is comprised of
representatives from various national standards organizations.

A standards is ‘a document that provides requirements ,

specifications ,guidelines that can be used consistently to
ensure that materials , products ,processes and services are fit
for their purpose .

ISO International standards are designed to ensure that

goods and services are safe for use , reliable and of good
standards .They provide business with tools to reduce
wastage and defects thereby leading to cost efficiency .
Some of the areas that ISO
covers are :
● Technology
● Food safety
● Health
● Environmental issues
● Road safety
Aim of ISO :

1. Foster economic growth in countries

2. The ISO plays an important role in facilitating world trade by

providing common standards among different countries

3. Promote health and safety

4. promote fair trade
Let us take a look at Two
ISO’S
● ISO 9001 - Quality Management Systems-
Provides a framework that organizations can adopt to ensure
consistent delivery of products or services that meet customer
and regulatory requirements.The main goal of ISO 9001 is
-to enhance customer satisfaction by improving the overall
quality of an organization's processes.
- It also allows the organization to attain its profit potential
and widen its market
- Bring quality to workers about what is expected of them .

● ISO 14001- Environmental management -.

It provides a framework that organizations can adopt to effectively
manage their environmental responsibilities and minimize their impact
on the environment.The main objective of ISO 14001 is to help
organizations establish an EMS that addresses environmental aspects,
legal and regulatory compliance, and continual improvement.
International Standards and
Regulations (ISO Standards);

Duty of Care
Occupational Safety and Health
Administration (OSHA)
Hazard Analysis and Critical
Control Points (HACCP).
Duty of Care
Businesses are obligated to exercise a ‘Duty
of Care’ to those with whom it interacts. This
means that they should be reasonably careful
in their dealings with their stakeholder. This
duty is upheld by law and so it goes without
saying that negligence is punishable.
E.g. To make the products reasonably safe
and to provide warnings concerning potential
danger that may result from their use, To act
in good faith, to provide adequate
supervision and training and to clearly define
job requirements, to provide proper
communication channels
Occupational Safety and Health
Administration (OSHA)
The Occupational Safety and Health
Administration, more commonly known by its
acronym OSHA, is responsible for protecting
worker health and safety in the United
States. Congress created OSHA in 1971
following its passage of the Occupational
Safety and Health Act of 1970 to ensure safe
and healthy working conditions for workers
by enforcing workplace laws and standards
and also by providing training, outreach,
education and assistance.
Occupational Safety and
Health Administration (OSHA)
The Occupational Safety and Health
Administration is an agency with responsibility
for setting and enforcing work safety measures
in the workplace. Some regulatory measures:

● Providing training for employees

● Providing job required tools and equipment
Documentation of illnesses,
● injuries and employee access to these
documents
● Visual publication of health and safety
practices in the workplace
Benefits to the venture in
employing OSHA
1. Providing a safe workings environment to
conduct business

2. Ensuring that workers safety needs are

met.

3. Ensuring the proper treatment of

hazardous materials.
Hazard Analysis and Critical
Control Points (HACCP).

HACCP is a management system that ensures that the

requirement of Food safety is upheld through the
analysis and control of biological, chemical and
physical hazards.
Hazard Analysis and Critical
Control Points (HACCP).
Potential Hazards are highlighted and
controlled at specific points in the production
process. Many global businesses have
insisted that their suppliers of raw material
and finished goods implement HACCP based
system . HACCP is a preventive method that
lessens the need for the detection of fault by
quality control personals . The risk of death
and illnesses that result from the consumption
of contaminated food is reduced.
5. Environmental Stewardship
Many Businesses are seen as units that relentlessly seek
profits . In so many cases , this orientation has
quickened the rate of environmental degradation. . If this
continues , much of our population will surely disappear
, not as a result of natural causes but fro factors such as
contaminations due to air and water pollutant . This must
come to an halt . With education comes responsibility. We
are steward of the environments in which we live and
operate …...
Environmental Stewardship
Environmental stewardship is the operation of
systems, undertaken by an individual, social
group or business, that involve the socially
responsible actions of
conservation,recycling,regeneration and
restoration geared towards the protection
and sustenance of the natural environment.
Ways businesses damage the
Environment
Air emissions-factories emit gases and other pollutants.

Incorrect disposal of hazardous materials

The waste that is disposed into the sea.

Effluent : Untreated wastewater may flow from factory plants

. It contaminate other water bodies and cause harm to human

,plants and animals .

Noise from business establishment , especially from factor

plants , will threaten the wellbeing of individuals.

Benefits of Environmental
Stewardship
◦ Promotes the health of those persons within it
and also of those who interacts with it.

◦ Protect the environment within which it is

located, sustaining it for continued use.

◦ Is able to take advantage of incentives that are

offered by the government or other institutions
for going green.( Eg. reduce duties on imports
that support environmental stewardship)

◦ Environmental benefits such as cost saving

resulting from reduced paper trails , using
recycle materials and energy efficiency.
The Role of the Government in
Promoting Environmental
Stewardship
Encouraging the formation of Not-for –Profit
organizations that promote environmental
stewardship.
Establishing governmental organizations that
will partner with businesses in the promoting
of environmental stewardship.
Setting and enforcing laws and regulations for
businesses that are geared towards protecting
the environment.
6. Intellectual Property
Caribbean government have set up agencies
that seeks to provide individuals and businesses
with protection for their intellectual property .
The procedures for accessing such service is by
no means a lengthy one.. A form must be filled
out by the applicant and this will be accompanied
by small payments.

In Jamaica , the process takes no more than 3

weeks. At the end of that time, the agency issues
a certificate that stipulates the number of years
of protection that is being offered . On expiry ,
the applicant has the option of doing renewal
procedures.
Intellectual Property
Intellectual property refers to creations of the mind:

inventions; literary and artistic works; and symbols,

names and images used in commerce.

The Jamaica Intellectual Property Office is the main

agency that has been setup to deal with all matters

concerning Intellectual property rights.

Benefits of the Protection of
Intellectual Property
Businesses will the right to seek redress
through the Justice System when their
inventions are stolen.
Businesses who protect their Intellectual
Property Rights are able to attract local and
foreign investors.
Prospective Entrepreneurs will feel free to
innovate when they are sure that their ideas
and creations will be protected by law.
Forms of Protection
There are several methods that allow
creativity and innovation to be protected.
These are:
Branding- The act of branding gives an
organization’s products or services a unique
brand identity, which consist of a mark(brand
name) and brand name that they can be
identified by.
Forms of Protection
Trademarks-A trademark is a distinctive sign
that identifies certain goods or services produced
or provided by an individual or a company.
Trademarks include a
word,symbol,phrase,design,name,logo and
slogan.
According to the Jamaica Intellectual Property
Office, a patent is a set of exclusive rights
granted by the government to an inventor or
their assignee for a limited period of time in
exchange for a public disclosure of an invention
Forms of Protection
The word “invention” is defined under the
Patent Act, 1857, as “’any new and useful
process, machines, manufacture or
composition of matters or any new and useful
improvement thereof.’’

So, the beautiful thing is that as long as you

are an inventor with a new and useful
invention you can apply for a patent!
Forms of Protection
Copyright-The legal protection given to
individuals who express ideas and
information in mediums such as art, music
and drawings. Copyright focuses on the
expression of an idea and not the idea.
Copyright gives the creator the right to
decide the reproductive use of original work.
Forms of Protection
Registered Design Protection
A design can be created and registered for
protection by the original owner. It can apply to
three dimensional elements,shapes,colours and
textures. Design protection hinders the original
designs being used without the creator’s
permission.
Forms of Protection
TradeSecrets-These consists of information
a business’ operations, goods or services that
allow the business to have an advantage over
competitors. The firm gains protection for
these secrets.E.g KFC’s formula for the
unique taste of the chicken.
7. Open Innovation
Open Innovation
Prior to the 21st century, most innovations
happened within an organization and were
carried out by the employees within the firm’s
Research and Development Department. That
is “ Closed Innovation”.

Open Innovation focus on the

organization’s use of both internal and
external ideas to advance their technology. It
is a decentralized approach to , resulting
innovation. It involves partnering with
with others in innovating, resulting in
shared risk and reward.
Open Innovation
( Advantages)
Randall Rothenberg (CE0 of Interactive Advertising
Bureau) claimed that open innovation leads to an
ongoing ,evolving community of users, doers and
creators.
Open Innovation reduces the cost of Research and
Development to determine feasibility and market
potential.
It enables enterprises to put new ideas on the
market at a faster pace.

It gives organization a competitive edge.

It minimizes technical risks that are associated with

innovation
Regulatory Framework for
Open Innovation
Proper ICT ( Information and Communications
Technology) Infrastructure.
Dynamic Capital Markets
Strong Public Research Base
Policies that balance competition with
cooperation.
8.Business Accreditation
Business Accreditation is a process that a business
goes through in which it assessed by an accreditation
body to ensure that the quality of its goods and services
are in accordance with the standards of the related
industry.
The Jamaica National Agency for Accreditation
(JANAAC)-(Authoritative body) is the national accreditation
body of Jamaica which grants formal recognition
that a conformity Assessment Body(CAB) is competent,
based on specific international standards and practices,
to carry out particular services.

Business Accreditation promotes the efficiency of the

systems of the business and helps to set the business
above its competitors, increasing public confidence.
It mandate is to facilitate trade between Jamaica and its
trading partners by enabling “Jamaica conformity
assessment system “ to meet international standards and the
World Trade organization on Technical Barriers to trade
8. Business Certification
● Business certification is a process by which an individual or
business obtains a credential that demonstrates an
individual's competence or expertise in a particular area of
business .

● Certification is usually awarded by a professional

organization or a certifying body and often requires
passing an examination or meeting specific criteria that
are set by the body that it wants to be certified by.
● The usually requirements are : evidence of tax returns ,
the business bank account, the leases agreement ,
professional licence , business licence, minutes of a stated
number of meetings , resume of each of the owners.

● Business certification makes the business eligible for

certain government contracts or other business
opportunities that arise in the corporate world .
I
9. Contracts
Businesses enter into contracts daily .
These include ( But are not limited to ):
Type of business Contracts
1. Lease arrangements

2. Sales of goods

3. Purchase of goods

4. Sale and Purchase of property

5. Rental agreements

6. Loan Agreements

7. Employments Contracts
 What is a Contracts?
A contract is a legally binding agreement
between two or more parties.A contract is
enforceable by law. This means that if either of the parties
does not abide by the contract, the other may take legal
action. A mere agreement is not legally binding and
therefore neither of the parties is liable if anyone breaks the
agreement.
Types of contracts: Simple
A contract may be of the following type :

1.Simple : This contract may be made orally

or be written .
Types of Contracts : Speciality
2. Speciality contracts : Speciality contracts must be
written . There must be an offer and acceptance . These
contracts must be written , sealed and delivered .

Examples :
Employment contracts
Leased agreements ,
Mortgage agreements
sales of property
Insurance contracts
Hire purchase agreements
Transfer of ownership of shares
Elements of a contract
When a party files a suit claiming a breach of contract, the first question the judge
must answer is whether a contract existed between the parties. The complaining
party must prove four elements to show that a contract existed:

1: An offer :

There must be an offer - The offer is a bid or a proposal made by one person
to another. The person making the offer is called the offeror. The person
accepting the offer is called the offeree. To enter into a legally binding
agreement there must be an offer made by one person which is accepted
by the other. The party making the offer and the one accepting the offer
must be of legal age, in his or her right mind and must not be an illegal
alien. An offer must be communicated to the offeree. An offer can be
made to a specific person or the world at large.
E.g. - Rayanna offers to sell her bracelet to Shanakay, this is an offer made
to a specific person
E.g. - Rayanna advertises that the first person who comes to her house on
a specific date and time will be able to buy the bracelet, this is an
example of an offer made to the general public.
Elements of contracts
Acceptance : A party to the contract can be said to
accept when he/she willingly accepts or agrees to
it.Acceptance can be made by a written statement
,verbal statements( i agree to sell you the trainer)
,conduct (sales assistant take your money \and put it in
the till).

Consideration:Consideration is the name given to the

price or benefit (reward) that the parties to the contract
receive. A contract must involve some type of payment
or consideration to be valid . Something of value must
be exchanged.( goods, services , money )
other elements :Capacity , Legality / intention to create
legal relation ..
Contracts
2. Speciality contracts : Speciality contracts
must be written . There must be an offer and
acceptance . These contracts must be written ,
sealed and delivered .

Examples :
Employment contracts
Leased agreements ,
Mortgage agreements
sales of property
Insurance contracts
Hire purchase agreements
Transfer of ownership of shares
 Contracts
Corporation enters into contract through the
acts of their agents , officers and authorized
employees . These persons are not held
personally liable for the debts of the
corporation. Where there is said to be a
breach, the court will examine each element of
the agreement to see if there was an intention
to create legal relations and if the contract
really exist .
 The Employment Contract
One important contract in a business is the employment contract.
An employment contract lays out the terms that have been put
forward by a business.
This includes the obligations that it requires of the employee.The
employee is assured that the business is professional and he/she is
being protected as a result of being presented with and signing the
agreement. In the case of non-adherence to any of the term of the
agreement by either the employer or employee, both parties will have
the advantage of being able to refer to the contract that was signed .
This can clear up misunderstanding , prevent liability or identify with
whom liability lies.

The employment contract contain items such as : The job offers

, responsibilities , salaries and benefit , procedures for handling
disputes, nature of employment( part time , full time ect.)
Confidentiality clause, leave entitlement and termination process.

Both parties must sign the contract

10.Financial Regulation
A well-functioning financial system is vital for the economy, businesses and
consumers.Financial regulation is part of ensuring the safety and soundness
of the financial system and protecting consumers.

Financial regulation refers to the rules and laws firms operating in the financial
industry, such as banks, credit unions, insurance companies, financial brokers
and asset managers must follow. However financial regulation is more than just
having rules in place - it's also about the ongoing oversight and enforcement of
these rules.

In jamaica , the Financial Service

Commission(FSC) came into existence on August 2, 2001 by virtue
of the Financial Services Commission Act to oversee the regulation of
insurance , pension and securities industries.This regulatory body has the
power to supervise , investigate and sanction the entities that fall under its
jurisdiction.
Types of financial Regulations
1. Anti-Money Laundering ( AML).
Money laundering involves disguising financial assets so they can be used
without detection of the illegal activity that produced them.
Through money laundering, the criminal transforms the
monetary proceeds derived from criminal activity into funds
with an apparently legal source.

1.Anti Money Laundering regulations is put in place to

eradicate that practice :The money laundering act in jamaica
provides for the tracing of assets derived from trafficking
in narcotics drugs and psychotropic substances and from
such other offenses as may be prescribed and for the
imposition of appropriate sanctions against person who seek
to acquire , conceal , covert , or transfer those assets .

.
Types of Financial Regulation
2. Countering Financing of Terrorism(CFT)
Terrorism Financing refer to the act of accommodating or facilitating

transactions that may be directly or indirectly related to terrorist activity

and /or terrorist organization.

AML/CFT tools can:

● Expose the infrastructure of criminal organizations, webs of corruption, and

conspiracies to commit terror acts

● Provide authorities with roadmaps to those who facilitate criminal and illicit activities

● Lead to the recovery and forfeiture of unlawfully-acquired assets

● Support broad and effective deterrence efforts against a wide range of criminal

activities, including the financing of terrorism.

Types of Financial Regulation
3.The Terrorism Prevention Act( TPA):

The TPA state that any person or organization that

commits a terrorism offence will be seen as having
committed an indictable offence and is liable for life
imprisonment in the case of individual and a fine in the
case of a corporate body . In the case of the facilitation of
the crime , a person is liable :
1.Where the facilitator known that a terrorist activity will
be facilitated
2. Whether or not the facilitator known of the nature of
the terrorist activity
3. whether or not any terrorist activity was carried out .
Types of Financial regulations
International Financial Reporting
Standards(IFRS):
The IFRS are set of Accounting rules that publicity-held corporations
world-wide must abide by, in the preparation of their financial
statements .The IFRS allows for integrity of accounting standards and
practices regardless of the adopting country. It seeks to hold
management accountable.
The IFRS are issued by the International Accounting Standards
Board ( IASB).

With regards to money laundering and financing terrorism, financial

institution are mandated to carry out reasonable due diligence in the
conduct of every transaction to ensure that it is consistent with the
financial institution’s , acknowledgement of the transaction party
business , trade or profession, and stated source of funds for the
transactions.
Food for thought