Located in the Pacific between the Philippines and New Guinea, this country has 26 main islands, of which eight are permanently inhabited. Palau currently has about 18,000 inhabitants, while the capital Ngerulmud has 271 inhabitants. The largest part of GDP consists of inflows from Tourism. Palau imports the most oil, machinery, and equipment, and the largest partners are Japan, Singapore, and South Korea.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole Proprietorship Registration Proces in Palau
To register a sole proprietorship in Palau, one should follow the instructions below.
- Open a bank account: Under the Money Laundering and Proceeds of the Crime Act of 2001, a business bank account cannot be opened until business establishment documents are submitted. Therefore, you must open an account as a natural person and pay the deposit required by law. When establishing, proof of paid money must be attached to the bank account.
- Register a business name: Check the availability of names for your business. You can do this online at the Office of the Attorney General website
- Registration fee: Pay the registration fee at the National Treasury (USD 250)
- Obtain a certificate of incorporation
- Register a Tax Identification Number (TIN)
Obtaining a certificate of incorporation in Palau
The process of obtaining a certificate of incorporation takes about 14 days if everything is in order with your papers. You register your business in the Corporate Register at the Office of the Attorney General. This part of the registration process does not require any additional costs, as they are covered within a fee that has already been paid.
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Taxation System in Palau
Any person carrying out commercial activities must be registered with the Bureau of Revenue and Taxation. Any tax must be reported and paid on time to avoid paying a 10% penalty.
Value Added Tax
VAT in Palau is 7.5%. To register, you need to fill out forms and submit them to the Bureau of Revenue and Taxation. Forms can be found on the official website of BRT. When it comes to VAT refund forms, you can also find them on the same website.
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