How to Register a Sole Proprietorship (Sole Trader) in Fiji

Working as an independent contractor—or sole trader—is a popular option in Fiji for people who want flexibility, control over their income, and minimal corporate overhead. Compared with setting up a company, becoming a sole proprietor is simpler, cheaper, and faster. The main challenges are dealing with multiple agencies for registration, keeping up with tax and VAT obligations, and ensuring compliance with social security contributions. The benefits include full control, simpler accounting, and the freedom to operate without the complexity of corporate governance.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Fiji?

In Fiji, a sole proprietorship is officially referred to as a sole trader. You may also see “self-employed individual” or “independent contractor,” but they all describe the same model: one person legally running a business without forming a company.

How does a sole proprietorship (sole trader) work in Fiji?

Sole proprietorship vs. other business structures in Fiji

Besides operating as a sole trader, entrepreneurs in Fiji often consider setting up a limited liability company or a partnership. A company offers limited liability and access to corporate tax rules, but the setup is more complex and costly. A partnership allows shared ownership but also comes with shared liability.

Step-by-step guide: How to register a sole proprietorship in Fiji

Step 1: Check your eligibility

Any individual with a valid ID and a local address can register as a sole trader. Foreign nationals may also register, but might need additional approvals from Investment Fiji depending on the activity.

Step 2: Choose a business name

If you operate under a name other than your personal name, you must register it with the Registrar of Companies. You can look up existing companies with the government search tool.

Step 3: Gather required documents

You will need the following documents:

• Valid ID (passport, driver’s licence, or national ID)
• Proof of residential address
• Business name certificate (if applicable)
• For foreign applicants: permits or Investment Fiji approval
• Documents for FRCS and Fiji National Provident Fund (FNPF) registration

Step 4: Register your business and tax account

Register your business name with the Registrar of Companies, then sign up with FRCS through the Taxpayer Online Service (TPOS) portal to obtain a Tax Identification Number (TIN) or update your existing one as a sole trader. If your annual turnover is above $100,000, you must also register for VAT using FRCS forms IRS001 and IRS018.

Step 5: Pay registration fees and contributions

Modest fees. There is no minimum capital. Foreign investors may incur additional costs. You will also need to budget for FNPF contributions once you begin paying wages, even to yourself.

Step 6: Handle post-registration obligations

You are responsible for maintaining proper accounting records and issuing invoices that meet legal standards. Each invoice must include your Tax Identification Number (TIN), business details, client details, service description, date, and VAT (if applicable). Invoices must be numbered sequentially and stored for your records.

If your business details change or you stop operating, you must update or deregister with both the Registrar of Companies and FRCS. Records must be kept for at least seven years, as authorities can request them during audits.

Financial and tax obligations for sole traders in Fiji

You are responsible for:

• Personal income tax (progressive): As a sole proprietor, your business profits are taxed under Fiji’s progressive personal income tax system, which ranges from 0% to 20% for residents. Non-residents pay a flat 20%. Incomes over $270,000 attract an additional SRT. Filing is done annually with the FRCS.
  Corporate income tax (if incorporated): If you instead operate through a company, corporate income tax applies at a flat 25%. Companies listed on the South Pacific Stock Exchange may qualify for a reduced 15% rate.
• VAT (Value Added Tax): Fiji applies a two-tier VAT system. A 15% rate applies to prescribed goods and services, while a 12.5% rate applies to all other taxable supplies. Registration is mandatory if your annual turnover exceeds $100,000. Once registered, you must charge the correct rate depending on your goods or services and file VAT returns with FRCS, usually monthly or quarterly.
• Social security contributions: You must register with the FNPF. Contributions are 18% of income (8% employee + 10% employer). As a sole proprietor, you cover both shares if you pay yourself a wage; if you only draw profits, contributions are voluntary.
• Record-keeping: You must maintain accurate records of invoices, receipts, and accounts for at least 7 years, as FRCS can audit.
• Invoicing: Every invoice must include your TIN, business details, client details, date, description of goods or services, and VAT (if applicable). Invoices must be numbered sequentially and retained.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a sole trader in Fiji?
None. There is no legal minimum capital.

Do sole traders need to register for VAT?
Yes, if annual turnover exceeds $100,000 (FJD).

How much are the standard contributions?
About 18% of wages (8% employee + 10% employer) to FNPF.

Can a sole trader hire employees?
Yes, but you must register as an employer with FRCS and FNPF.

How long does it take to register?
Usually, a few days via businessNOW/FRCS. Foreign investment approvals may take longer.

Can foreign nationals register?
Yes, but certain activities require Investment Fiji approval.

Do sole traders need a business bank account?
Not legally, but strongly recommended for clarity.

What happens if I stop operating?
You must deregister your business, notify FRCS and FNPF, and file a final tax return.

Are there incentives for new sole traders?
Not specifically, though companies may access sectoral incentives.

Can I use Deel as a sole trader?
Yes. Deel supports payments, invoicing, and compliance for freelancers and sole traders in Fiji.