HAGÅTÑA (The Guam Daily Post) — Allowing businesses to open up before they finalize the “tedious” business licensure process with the government of Guam could help encourage new upstart companies and strengthen the economy, according to one lawmaker.
Sen. Dwayne San Nicolas on Tuesday announced Bill 168-37, which would allow the Department of Revenue and Taxation to issue “conditional business licenses” allowing license holders to operate for one year. Conditional licenses would be issued with the understanding that the new business will have to complete all the steps necessary for full licensure before their temporary license expires.
“I’m looking for every avenue to support businesses and get people back to work,” San Nicolas said in a statement. “When I ran for public office in 2022, I told the people of Guam that I want to grow the economy, which this bill, once passed, will do.”
According to a release from the senator’s office, just getting the necessary permits to obtain a business license is one of the biggest hurdles any enterprise faces before it can open up shop. Depending on the type of business that a person intends to open up, clearance may be required from several different government entities like the Department of Land Management, Guam Fire Department, or Contractor’s License Board before a person can obtain a business license.
“Each required permit mandates an inspection process before the permit is provided, which takes up valuable time. Delays in procuring these permits and requirements drastically impact and slow down the process of obtaining a business license to the point that some businesses are forced to cease operations or prevent newly established businesses from opening their doors to serve our island,” San Nicolas’ bill states.
More flexibility
Providing more flexibility for people to operate would encourage more folks to take a chance at entrepreneurship, according to the senator’s office.
The bill states that any business owner can apply for a conditional license if they fail to meet the requirements for full licensure. The director of Rev and Tax will be responsible for assessing every conditional license application, along with the relevant license board. Those that fail to meet the requirements for getting full licensure during the one-year time frame will be subject to a penalty of $1 per each calendar day that they are delinquent.
Individuals with expired licenses may apply for the conditional business license as well.
Sen. Dwayne San Nicolas speaks during a public hearing at the Guam Congress Building in Hagåtña on Tuesday, Sept. 19, 2023.
