Definition of a Small Business
- An approved Small business under Section 3(1) of the Small Business Act and registered under the Small Business Registrar with the Corporate Affairs and Intellectual Property Office (CAIPO).
- These businesses are usually:
- incorporated under the Companies Act
- have more than 75% of its shares locally owned;
- have no more than $1 000 000.00 as stated or paid up capital
- have no more than $2 000 000.00 in annual sales
- no more than 25 employees
Definition of a Start-up / Entrepreneur
- a person (sole trader ) or group of persons forming a partnership
- a registered business operating from home, online or a brick and mortar
- innovator of ideas and business processes
- has less than $1,000 000.00 in stated or paid up capital
- has less than $2,000 000.00
Definition of a Corporation (reference made to the Companies Act)
- a registered company which has also been incorporated by Corporate Affairs and in possession of the company’s certified copy of the corporate instruments (Articles of Incorporation)
- structure consists of one or more directors, shareholders and officers
- may be a for profit or not for profit organization (also known as Nonprofit Organization (NGO) )
- a separate legal entity from its shareholders or, in the case of a non-profit company, from its members.
- an incorporated business that has the capacity, as well as the rights, powers and privileges of an individual.
- the liability of the owners or shareholders of the company is limited to the amount invested in the company or any amount unpaid on their shares.
- in the case of a non-profit company having no share capital, the members of the non-profit company incur no personal liability or individual responsibility for the debts or other liabilities of the company.