Understand the Jurisdictions Setup Requirement Before Proceed Your Timor-Leste Company Incorporation Services
Timor-Leste is a developing country that takes up half an island situated between Australia and Indonesia. It is one of the youngest democracies in the world. Since the year 2007, its economy became one of the fastest-growing ones, from modest petroleum resources revenues.
You might find it a bit challenging to do business in Timor-Leste, but it will be profitable. Today, a lot of ex-pats live and work in Timor-Leste. Some work in the government, NGOs, private sectors, and other fields.
You are going to find out more from this article.
Forming a Company
The company can be formed by an applicant that must comply with the regulatory framework. There are three types of companies: Limited Liability Company, Shareholder Limited Liability Company, and Joint Stock Company.
How to Register
- Deposit the minimum capital at the bank. The capital requirement minimum required is based on what the commercial registry code needs. You will deposit it to a specific bank, and it should also be used in the business.
- Register your company’s name, file the statutes, apply the TIN, and get the final number of registration and certificate of incorporation. This will take about five working days.
- Publish the statutes – After going through internal validation, the applicant must give the document check-incant for company registration publicly. It is to start the company summary’s registration details.
- Obtain the company stamp – Lastly, the company completion procedure in Timor should have a stamp. It is worth noting that based on the law, company requirements might need to register for taxes, licenses/permits, municipal law, labour law registration, and more.
Registering a business in Timor-Leste is handled by SERVE. If you provide all the paperwork, the registration takes a maximum of 5 working days. The company can be established with at least $1.
Documents issued by SERVE:
- Registration Certificate – Certificade de Registo Comercial, CRC
- Certificate of Business Registration (CBR)
- Authorization to Conduct the Activity (ACA) – this is for lowering risk activities.
- Business License (BL) – Higher risk activities
What You Will Need to Register Your Company
- Memorandum of Association
- IDs of shareholders and taxpayer number
- Identification of corporate bodies
- Acceptance letter of each corporate body member
- Bank document that certifies the company’s deposited capital
- Registered office location
- Certified copies of the prior authorization allowing you to conduct business
Register at the Ministry of Finance
Companies should confirm their registration at the Ministry of Finance. After completion of registration, the debt certificate will be given for a couple of interactions with the government authorities.
Register at the Ministry of Solidarity for Social Security
Your company and employees must legally register for Social Security at the Ministry of Solidarity. In addition, the company as an entity undertakes registration and the employees. They need to submit their registration form together with documents, respective identification numbers, and employment contracts.
Preferential Policies for the Foreign Investors
To introduce additional funds and investment, the government will issue preferential policies to lower the taxes. Investing in various areas grants you free land for a couple of years. Hiring a local can lessen your taxes to the government.
Exempted Customs and Business from Taxes
- Capital commodities and different parts of equipment.
- Raw materials that are used in manufacturing.
- Components and parts for reproducing goods or services.
- Providing electricity-generation fuel to companies that do not have normal electricity.
Why Set up a Business in Timor-Leste
Tax-free – The projects in rural areas do not get taxed between 7 to 12 years. The projects in Oecussi and Atauro do not get taxed for 9 to 15 years.
Preference to Investors – They made it possible for investors to have an easier time setting up a business in Timor-Leste. In addition, tax policies are good for anyone who wants to invest.
Developing country – Since it is a developing country, there is a lot of potential for improvement. You can have a lot of room to introduce innovative products that will complement their work. Therefore, the government has made friendlier policies for foreigners to attract them into doing business in Timor-Leste.
If you want to open a business in Timor-Leste, 3E Accounting will be there for you every step of the way. You can contact them for all your business needs (such as company set up), and this is especially useful if it is your first time to open a business in Timor-Leste. Their experts will have answers to all your questions about business opportunities in Timor-Leste.