Purpose
Provide a practical framework for operating across multiple CARICOM member states. Focus on permissions, tax/VAT, banking/FX, licensing, and documentation. Applies to startups and SMBs expanding regionally.
Context & Assumptions
- CSME principles exist but implementation differs by country; local rules prevail.
- Sector licenses and professional recognition are often country-specific.
- Cross-border payments, FX, and customs require documentation and compliance.
Core Guidance
Movement & Permissions (Conceptual)
- Goods: Confirm tariffs, rules of origin, customs documentation, and any import licenses.
- Services: Check licensing, professional recognition, and work permit requirements.
- Capital: Review FX controls, bank onboarding, and repatriation rules.
- People: Verify visa/work permit categories even for CARICOM nationals in certain roles.
Compliance Areas
- Customs duties, classification, and origin certificates for goods.
- VAT/GST on cross-border supplies; determine place-of-supply rules.
- Banking KYC/AML, FX approvals where applicable.
- Data protection, consumer protection, and contract law variations by country.
Practical Steps
- Map goods/services flows and identify required permits and documents.
- Select banking partners per country; prepare standardized KYC packs.
- Standardize import/export documentation (invoices, packing lists, origin certificates).
- Track VAT/tax obligations for cross-border supplies; align invoicing accordingly.
- Plan for work permits/professional recognition where staff deploy cross-border.
Documentation Discipline
- Maintain copies of permits, licenses, origin certificates, shipping docs, and contracts.
- Keep residency and tax certificates for treaty claims on cross-border payments.
- Align contracts to specify governing law, tax gross-up clauses, and dispute mechanisms.
Common Pitfalls
- Assuming CSME removes all local licensing or work permit requirements.
- Missing origin documentation, leading to higher duties or delayed clearance.
- Overlooking FX controls and bank compliance, delaying payments.
- Underestimating time for professional recognition and work permits.
- Treating cross-border services as VAT-exempt without verifying place-of-supply rules.
Related Documentation
- Legal structure: https://www.omadudu.com/docs/business-formation/caricom/legal-structure
- Registration: https://www.omadudu.com/docs/business-formation/caricom/registration
- Tax considerations: https://www.omadudu.com/docs/business-formation/caricom/tax-considerations
- Timeline & next steps: https://www.omadudu.com/docs/business-formation/caricom/timeline-next-steps
Disclaimer: Informational guidance only. Customs, licensing, FX, banking, tax, data protection, employment, and immigration requirements differ by country and change over time. Always verify with local authorities and engage qualified legal, tax, and immigration advisors in each CARICOM jurisdiction before operating cross-border.