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Palau’s Business Environment: Registration Requirements and Foreign Investment

KOROR, PALAU - Palau’s business community is thriving, with a growing number of entrepreneurs and investors looking to establish a presence in the Pacific island nation. In this article, we will explore the registration requirements for corporations and partnerships, as well as the process for obtaining foreign investment permits.

Registration of Corporations

To register a corporation in Palau, applicants must submit a non-refundable filing fee of $250.00. The Articles of Incorporation must contain specific information, including:

  • Name of the corporation
  • Purpose of the corporation
  • Shares and share structure
  • Directors and their roles
  • Duration of the corporation
  • Incorporators and their details
  • Voting and disposition procedures
  • Liquidation and amendment procedures
  • Ownership structure, including foreign ownership

Additionally, corporations are required to file Bylaws, which outline the powers of the corporation and its board of directors. An Affidavit must also be submitted, detailing information such as:

  • Number of authorized shares
  • Par value of shares
  • Names and addresses of subscribers
  • Subscription prices

Registration of Partnerships

Partnerships formed under Palau’s laws or those formed in another jurisdiction but doing business in Palau must provide specific information to the Office of the Registrar, including:

  • Name and mailing address of the partnership
  • Nature of the partnership
  • Names and addresses of each partner
  • Details about the partnership’s business

Foreign Investment Permit

The Foreign Investment Board (FIB) is responsible for reviewing and approving applications for Foreign Investment Approval Certificates (FIACs). The FIB has seven members appointed by the President with consent from the Senate. Applications for FIACs must be accompanied by a non-refundable fee of $500.00.

Certain business activities, such as:

  • Wholesale or retail sales
  • Land transportation
  • Travel agencies

are reserved exclusively for Palauan citizens.

Investor Visas

The FIB also issues Investor Visas to foreign investors who have made significant investments in Palau. These visas allow holders to reside in the country for a specified period of time.

Contact Information

For more information on registering a corporation or partnership, or obtaining a Foreign Investment Permit, contact:

  • Sonsorol State Government:
    • P.O. Box 1077, Koror, Republic of Palau, 96940
    • Phone: (680)4881237/5501
    • Fax: (680)4885501
    • Email: sonsorol@palaunet.com
  • Foreign Investment Board:
    • Encely Ngiraiwet, Executive Officer
    • P.O. Box 1733, Koror, Palau, 96940
    • Located in the OLD President’s Office Building in Meyuns, Koror
    • Phone: (680)488-1135/2073
    • Fax: (680)488-3722
    • Email: fibpalau@palaunet.com

By understanding Palau’s business registration requirements and foreign investment regulations, entrepreneurs can better navigate the country’s economic landscape and make informed decisions about their investments.