Timorese government is actively advertising the country as a business destination. The low tax rate and other benefits for foreign investors make Timor-Leste an ideal business location. Individuals and businesses are taxed at a flat rate of 10% on taxable income. Another motive to do business in Timor-Leste is the country’s potential to join ASEAN as the 11th member. As a result, Timor-Leste will join the ASEAN Free Trade Area as a new member. Timor-Leste becomes a gateway for corporations looking to expand into emerging Asian economies, as well as a potential worldwide hub for international investment and commerce, thanks to its tax policy and proximity to Australia and other major Asian countries.
Sole proprietorship
This type of business is simple and inexpensive to start, with fewer obligations and compliance requirements. It is known as a non-incorporated entity, and the owner is solely responsible for all business debts and liabilities up to the extent of the owner’s assets.
Partnership
It is a company without a limited liability formed between two people or entities under a specified name in which partners share joint responsibility for the partnership’s obligations and liabilities to the extent of their whole personal assets.
Branch/Representative Office/Subsidiary
In the country, a foreign company can open a branch office, a representative office, or a subsidiary. It is a method used by the government of East Timor to bring in international entities to investigate and develop the country’s infrastructure and resources.
Company
An applicant can form a company if the regulatory framework is followed. Single Shareholder Limited Liability Company, Limited Liability Company, and Joint Stock Company are the three types of companies.
Eligibility Criteria for Company Registration in East Timor
For company registration in East Timor, the following eligibility criteria should suffice:
Minimum Shareholders
The application must meet the minimum number of shareholders criteria. A single shareholder corporation, for example, must have only one shareholder. A minimum of three shareholders is necessary for a Joint Stock Company. A Limited Liability Company (LLC) must have at least two shareholders.
Company Name
For East Timor company registration, the applicant must reserve the company name. The company’s name must not violate any current intellectual property laws. The applicant must also be issued a certificate of name uniqueness.
Residency Requirements
The applicant must also show that at least one administrator lives in Timor.
Share Capital Proof
The applicant must also present formal proof of share capital. The applicant would deposit the allowed share capital in a bank account.
Civil Status of the Shareholder
Before the authority, the shareholder’s civil status must also be supplied. The marriage certificate can be used to accomplish this.
Registered Office
The applicant for East Timor company registration must additionally demonstrate that the office is registered in East Timor. This must also be accompanied by a map.
Benefits of Company Registration in East Timor
The following are some of the advantages of forming a company in East Timor:
Tourism
Since the liberalization of the Indonesian economy, the tourist sector in this country has flourished. Tourists in East Timor can choose from a variety of interesting destinations. As a result of tourism, an investor can register a firm in East Timor.
Oil and Gas Reserves
East Timor’s abundant oil and gas reserves will entice more investors to invest. Oil and gas corporations have a significant presence in East Timor.
Foreign Investment
The government encourages foreigners to invest in East Timor. Foreign investors and companies who choose to invest in East Timor can take advantage of a variety of plans and subsidies.
Market Entry
Foreign investment is encouraged by the government. As a result, breaking into the East Timor market would be rather simple. To obtain information, a foreign investor seeking to register a company in East Timor must contact the appropriate government authority.
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Breakdown of East Timor company registration fees and expenses
