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Benefits of Making Business in Trinidad & Tobago | Buy & Sell Business

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Benefits of Making Business in Trinidad & Tobago | Buy & Sell Business

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  1. BENEFITS OF MAKING BUSINESS IN TRINIDAD & TOBAGO WWW.MERGERSCORP.COM

  2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

  3. BENEFITS OF MAKING BUSINESS IN TRINIDAD & TOBAGO WWW.MERGERSCORP.COM

  4. Country Overview Trinidad and Tobago is one of the wealthiest countries in the Caribbean, thanks to its large reserves of oil and gas, the exploitation of which dominates its economy. Inhabited mostly by people of African and Indian descent, the two-island state enjoys a per-capita income well above the average for Latin America and the Caribbean. Dependence on oil has made the country a hostage to world crude prices, whose fall during the 1980s and early 1990s led to the build-up of a large foreign debt, widespread unemployment and labour unrest. As with other nations in the region, Trinidad and Tobago - a major trans-shipment point for cocaine - has been troubled by drug- and gang-related violence, which threatens the tourism industry. Trinidad and Tobago is a twin-island country located at the southernmost part of the West Indies in the Caribbean. Trinidad and Tobago is famous for its stable economy, steel pans, carnival festivity, Caribbean dance (Limbo), gorgeous beaches, lush greenery, musical styles, among other things”. It consists of two main islands Trinidad and Tobago and several smaller islands. Forming the two southernmost links in the Caribbean chain, Trinidad and Tobago lie close to the continent of South America, northeast of Venezuela and northwest of Guyana.

  5. Executive Summary Located on the Gulf of Paria, on the island of Trinidad's northwestern coast, Port of Spain serves as the capital of Trinidad and Tobago. Trinidad, by far the larger of the two main islands, has an area of about 1,850 square miles. Tobago, much smaller, with an area of about 115 square miles, lies 20 miles to the northeast of Trinidad. The official language of Trinidad and Tobago is English, although we do have segments of the population that speak other languages, including "patois", a slang version of French that was brought to the islands by French settlers in the colonial period. Tobago today is a peaceful, friendly place where nature is nurtured and local people and visitors come together to relish its beauty and bounty. Trinidad and Tobago, officially the Republic of Trinidad and Tobago, is a two-island country off the northern coast of South America just off the coast of northeastern Venezuela. It shares maritime borders with Barbados, Grenada, Guyana, and Venezuela. The estimated population of Trinidad and Tobago is 1.40 million, which ranks 154th in the world. The Trinidad and Tobago islands are surrounded by the Caribbean Sea to the north and west and by the Atlantic Ocean to the east

  6. Introduction – Doing business in Trinidad & Tobago Trinidad and Tobago is a small island state with a trade surplus thanks to hydrocarbon and petrochemical wealth. Its population is accustomed to a high and steadily increasing standard of living, but the country is without capacity to meet most of its needs internally, so it must import. Trinidad and Tobago imports over 70 percent of its food, primarily from the U.S. There is a small but vibrant light manufacturing sector and maritime services sector. A high crime rate creates a need for safety and security products. Information and Communication Technology are in demand. Entertainment and tourism related equipment and services may have potential. The government is actively seeking tourism investment projects which will have spin-off effects for equipment and other products. The two islands of Trinidad and Tobago are in the Lesser Antilles, between the Atlantic Ocean and the Caribbean Sea. Trinidad and Tobago is a high-income developed country with a GDP per capita of over US$15,700 and an annual GDP of US$22 billion. It has the largest economy in the English- speaking Caribbean Community (CARICOM) and is the third most populous country with 1.4 million inhabitants.

  7. Conducting business in Trinidad & Tobago license before they can operate legally, but this procedure is different from organizing or incorporating a company. The application fee for registering a business as a Sole Proprietorship / Partnership is TT$220.00. Once the Certificate of Business Registration of a Partnership or of a Sole Proprietorship (Individual) has been approved by the Companies Registry, the business is deemed duly registered. Limited Liability Companies (LLC) are the most popular form of corporate entities in Trinidad and Tobago. A limited liability company is identified by (Ltd) at the end of the name of the company. The sector is positioned to grow thanks to government support through incentives offered for export focused manufacturers, developing niche markets in creative industries, and encouraging expansion of agri-business. A high crime rate creates a need for safety and security products. Information and Communication Technology are in demand. Entertainment and tourism-related equipment and services may have potential If you start a company without registering it, you will be regarded as a sole trader, even if you do not intend to be one. In most states, businesses are required to register or obtain a business

  8. Taxation in Trinidad & Tobago Trinidad and Tobago has maintained a flat tax rate of 25%. This has since changed following the 2016/17 National Budget, which was introduced in September 2016. Effective January 1, 2017, individuals and companies whose chargeable income is in excess of TT$1m ($149,000) will be charged at a tiered rate. The income tax rate for individuals with chargeable income less than TTD 1 million is 25%. For chargeable income in excess of TTD 1 million, the rate of tax applicable is 30%. A tax at the rate of 25% on the profits and short term gains of companies accruing in or derived from Trinidad and Tobago. However, companies engaged in the following activities are charged tax at the rate of 35%. Corporation Tax is calculated as a percentage of your taxable profits. Your trading profits which you publish in your accounts (revenue minus expenditure) are not your taxable profits. You must calculate your tax-adjusted trading profits in order to pay your Corporation Tax.

  9. Trade catalysts. Trinidad and Tobago's main trading partner is the United States, accounting for around 45 percent of total trade. Trinidad and Tobago's major export commodities include petroleum and petroleum products, liquefied natural gas (LNG), methanol, ammonia, urea, steel products, beverages, cereal and cereal products, sugar, cocoa, coffee, citrus fruits, vegetables and flowers. The most recent exports are led by Petroleum Gas which represent 28.3% of the total exports of Trinidad and Tobago, followed by Refined Petroleum, which account for 20%. The most recent imports are led by Crude Petroleum which represent 21.5% of the total imports of Trinidad and Tobago, followed by Iron Ore, which account for 5.62%. Trinidad and Tobago mainly imports oil, iron ore, fuel, vehicles, water heaters, ethyl alcohol, iron and steel, pumps and

  10. Banking in Trinidad & Tobago The Central Bank of Trinidad and Tobago is the central bank of Trinidad and Tobago. The Central Bank of Trinidad and Tobago is located in the Eric Williams Financial Complex. The complex consists of the central bank auditorium and two sky-scrapers, locally known as the Twin Towers. The most important regulatory power that a central bank has is that it can modify the reserve requirements. The central bank can simply regulate the behavior of the commercial banks to suit the national interests by modifying the reserve requirement rates. Nationalization of banks means to take the banks under government undertaking. Banks after nationalization comes directly under Banking regulation Act 1949. RBI (Reserve bank of India), India's Central bank become the first nationalized banks in India after the Indian independence.

  11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

  12. Looking to Buy or Sell a Business? CONTACT US NOW FOR A FREE BUSINESS VALUATION WWW.MERGERSCORP.COM

  13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com

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