The southeast Asian nation of Timor-Leste is a producer of coffee, cinnamon, and chocolate. Despite being a developing nation, it has enormous potential for commercial and industrial growth as the economy steadily diversifies.
Company registration process
The following are the steps taken:
Create a bank account and add funds
Candidates must open a bank account, and they are allowed to choose the capitalization level of the business.
Publish the business
At SERVE, the one-stop shop for business registration in that country, applicants can submit their applications.
The following paperwork must be supplied in order to register a company, which is free:
- Articles of Association.
- Taxpayer number and shareholder identification.
- Organizational identification.
- Acceptance letters from each corporate body member.
- Bank statement attesting to the capital placed by the company.
- The address of the registered office(s).
- Certified copies of the business’s business license (if applicable).
Company registration should be finished by SERVE in 5 business days, although actual completion times may vary.
The incorporation and registration certificate (Certificado de Registo Comercial, CRC), which includes the company’s registration number and tax identification number, can be obtained by applicants once registration is complete (TIN). SERVE will also summarize the company’s registration information available online.
The company might after that be needed to submit additional business license applications if it is thought to operate in a medium or high-risk industry.
Become a member of the Ministry of Finance
Companies must verify their registration as a corporation with the Ministry of Finance. A certificate of debt (“certido de dvidas”) will be issued following the completion of the process and used in a number of interactions with government officials.
Obtain employee registration information from the ministry of social solidarity
A corporation is required by law to register with Social Security through the Ministry of Social Solidarity, as are all of its employees. Additionally, the business, as an employer entity, will register both itself and every employee by submitting the registration form along with the necessary identification, employment contracts, and registration paperwork.
Create a business seal
Even though it is not required by law, businesses must have a seal in order to work with government organizations (eg. the Ministry of Commerce and Industry). Then, applicant companies can buy one from a private seal manufacturer.
Benefits of company registration in East Timor
The following are some of the benefits of setting up a company in over there:
Tourism
This nation has great potential for the development of the tourism sector since Indonesian liberalization. Tourists can choose from a variety of alluring locations here. Because of tourism, an investor may register a corporation in this country.
Oil and gas reserves are plentiful, which will entice more companies to invest here. Oil and gas firms are heavily involved.
Foreign investment
The government actively encourages foreign investment in East Timor. Foreign investors and businesses that choose to invest in East Timor are offered a variety of schemes and subsidies.
Entry into the market
The government encourages international investment. Consequently, it would be simple to enter the market. A foreign investor seeking information about company registration in must get in touch with the relevant government agency.
Eligible business structures for East Timor company registration
In East Timor, the following business can be established:
Solo entrepreneurship
This type of company, which is referred to as a non-incorporated entity totally liable for all debts and liabilities of the owner for business to the degree of the entity’s liability, is easy and inexpensive to start up with fewer obligations and compliance requirements.
Partnership
It is a corporation without limited liability that is created between two people or modes under a specified name and in which partners share joint responsibility for the partnership’s obligations and liabilities to the extent of all of their individual assets.
Company
The applicant may establish the corporation, provided that they adhere to the legal requirements. There are three different types of businesses: joint stock companies, limited liability corporations, and single shareholder limited liability companies.
Compliances for East Timor company registration
For a corporation to be registered in East Timor, the following requirements must be met:
Corporate tax
Corporations must pay an annual corporate tax of 10%. The relevant tax authorities must receive a corporate tax return.
TIN
In addition, after obtaining a tax ID number, businesses must register with the Ministry of Finance (TIN).
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Breakdown of East Timor company registration fees and expenses
