Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Timor-Leste
Running a business in Timor-Leste may be challenging, but you can make profits from it if you are patient, creative and resourceful. With virgin natural landscapes and sceneries, you could fall in love with its charms. It is surprising for many that Timor-Leste is developing despite its struggles to build up again destroyed facilities. Though Timor-Leste ranks low in the world charts, the government of Timor-Leste is doing their best to attract foreign investors. After 20 years of independence, Timor-Leste has come a long way from being a torn state into a peaceful and progressing country. Find out how to register a company in Timor-Leste for your business expansion plans.
Beneficial to All
The government of Timor-Leste is actively promoting Timor-Leste as a place to do business for anyone willing to do so. For starters, the corporate and personal income tax rate is only 10%. As a foreign entrepreneur, the government of Timor-Leste introduces preferential policies to decrease taxes. One such example is that investing in different municipalities allows you to acquire land easily. Hiring local employees and train them accordingly will also reduce your tax burden in Timor-Leste. The financial support may be a bit tricky, but with adequate credibility, banks can work it out with the entrepreneur for financial assistance. The most developed and commercially concentrated area is Dili, the capital of Timor-Leste. But if you are planning to dive into agriculture, Timor-Leste’s production of coffee, coconuts, sweet potato, corn and many more is a promising industry.
Register a Company in Timor-Leste
The process of registering a company in Timor-Leste is straightforward. Due to its lack of enforcement, many businesses in Timor-Leste can go unregistered. But this will cause unresolved problems later as the government could not intervene without proof of registration. Registering the company will ensure the entity is legalised and comes with a range of benefits. Registered companies can gain access to credit from banks, employees and business owners’ rights protected and legalised business will result in more job creation.
There are three types of company registration allowed in Timor-Leste:
- Single Shareholder Limited Liability Company: 1 shareholder and minimum share capital of US$5,000 and maximum share capital US$500,000.
- Limited Liability Company: minimum of two shareholders and maximum of 30 shareholders. Minimum share capital is US$5,000, and the maximum share capital is US$500,000.
- Joint Stock Company: minimum of three shareholders and minimum share capital of US$500,000.
The following are steps to register a company in Timor-Leste:
- Fill up and complete the Certificate of Uniqueness of Company Name form. This process takes two days.
- Complete Application for Business Registration form and submit all required documents such as Memorandum of Association(MA) and Articles of Association (AA), identification documents for each shareholder, proof of residency in Timor-Leste at least for one administrator, power of attorney as a legal representative (if applicable).
- Once all documents have been verified, applicants will receive a Receipt with the type of registration requested and the date they can collect their Business Registration Certificate from the Public Registry.
- Then the applicant will need to apply for Taxpayer Identification Number (TIN).
- After receiving the Business Registration Certificate and TIN, the applicant must apply for a Business License.
Contacting the Local
If you are planning to invest and register a company in Timor-Leste, get in touch with us. We will advise you accordingly at every stage of company registration and see through it that your business can take off smoothly.