Understand the Jurisdictions Setup Requirement Before Proceed Your Timor-Leste Company Formation
Timor-Leste is the youngest nation in Asia, offering big opportunities in different fields, specifically in the industry of Halal food. In addition, it is subsistent in forestry, fishing, and agriculture which sustains the majority of the population. The main export products are timers, sandalwood, and coffee beans. Timor-Leste’s economy was underdeveloped because of Portuguese neglect in the past. The Indonesians had built basic infrastructure, but the majority of it was removed or destroyed by Indonesians. The client militias during the aftermath in August 1999 and the Indonesians voted for independence. They relied on international aid, but they discovered oil and gas fields in the Timor Sea, which has transformed their economy. Therefore, Timor-Leste company formation is a great idea.
Different Kinds of Company Formation
Single Shareholder Limited Liability Company – There needs to be at least 1 shareholder and the share capital should be at least $5,000 and the maximum is $500,000.
Limited Liability Company – This need at least 2 to 30 shareholders. The minimum capital is $5,000 and the maximum is $500,000.
Joint Stock Company – This company asks for at least 3 shareholders and the minimum capital is $50,0000.
Once you have the required documents, you can now start the registration process of your company. Take note of these:
- Deposit the minimum capital to the bank. The commercial registry code recommends a required minimum share capital that must deposit in the specified bank. This also needs to be done in the business.
- Register the name of your company, file the statutes, apply TIN, get the final registration number, and obtain the certificate of incorporation that is certified by the concerned authority.
- Publish the statutes. This means after thorough validation and submission of applicant’s documents for company registration, they must also publish it for public information which states the summary of company registration details.
- Get a company stamp. This is the last thing to complete the registration procedure. In addition, it is worthy to take note that based on the company law requirement, there might be a need to get a tax registration, licenses/permits, municipal laws registration, labour law registration, and so on to operate a business in Timor-Leste.
Why Open a Business in Timor-Leste?
Timor-Leste has reached a level of formal independence back on May 20, 2002, which came from the UN sponsorship referendum in 1999.
On August 30, 2001, Timor-Leste had their first democratic legislative elections. There were more than 91% of the population who were eligible voters in Timor-Leste that were part of a Constituent Assembly. In March 2002, the Constituent Assembly gave the constitution approval according to the Portuguese model.
Timor-Leste’s head of state is a president they directly elect with limited executive power. The government leader is a Prime Minister and political party leader who can form the most coalition in the unicameral national parliament.
They have placed low tax jurisdiction for offshore companies and tax haven jurisdictions that refers to different types of offshore companies. These can put up at offshore jurisdiction centres such as Belize, Seychelles, the British Virgin Islands, UAE or RAK.
- The profits distribution in any name or form
- The expenses incurred for a taxpayer’s personal benefit, dependents, partners, shareholders, or members
- Reserves that are provided by the TDA
- A legal person pays excessive compensation to another legal person member or the payments between associates
- Salaries that a partner receives in a partnership
- Bribe or similar payment
- Losses or expenditures incurred that is recoverable under the insurance or in the indemnities contract
You can consult with 3E Accounting to open a company in Timor-Leste. Contact us now.