Understand the Jurisdictions Setup Requirement Before Proceed Your Company Incorporate in Timor-Leste
Timor-Leste is a small island at the southern end of Maritime Southeast Asia, in the north of the Timor Sea. It may be a little more challenging than most to start-up a business in Timor-Leste but there are enough pros to tip the scales in our favor. Only having been established as a country in 2002, it is still incredibly young and is rapidly developing.
To continuously grow, the Timorese government has provided various forms of businesses. Wondering why should your company incorporate in Timor-Leste? Read on to find out!
Timor-Leste is a country with an abundance of resources that have so much potential. Due to this, there are still many unexplored avenues. With the government making plans for investment in the country’s infrastructure, Timor-Leste would surely attract even more investors, entrepreneurs, and businessmen. Low labor cost also contributes to the reasons why should your company incorporate in Timor-Leste.
There are a few industries that investors should take into consideration before setting foot.
Oil and Gas
The petroleum industry is growing, which is one of the factors that make Timor-Leste a sound investment. In 2019, Timor-Leste entered into an agreement with Australia involving the Greater Sunrise Fields. This land can hold more than 5 trillion cubic feet of natural gas and 200 million barrels of a light crude oil known as condensate. The industry’s surveyors have discovered its potential for oil in 1974. However, the development was delayed for decades due to the maritime boundary disputes that were only resolved last year. The Timor-Leste government has the intention of using the gas obtained from those fields to underpin a new $12 billion liquefied natural gas (LNG) plant. This is part of the industrial complex to be built over the next decade along the southern coast.
Agriculture can be considered the main source of livelihood for the Timorese. Without access to technologies and practices, the Ministry of Agriculture and Fisheries has implemented a program to assist the farmers by teaching them new and advanced techniques. This is to help them increase their crop yield and reduce the number of crops lost after harvest. The most promising products are coffee, coconuts, beans, corn, sweet potatoes, peanuts, etc.
The fishing industry is still developing, despite its marine resources. Thus, there is a huge opportunity in terms of the fishing sector. This also includes the huge market potential of the processing of marine products.
The huge and diverse natural resources available in Timor-Leste contribute greatly to the growth of their tourism sector. With lush nature and breathtaking sceneries, the tourism industry has a pretty solid foundation. Its green mountains, nice beaches, blue sky, fantastic diving position, and exotic fauna will further develop the tourism sector in Timor-Leste.
How to Incorporate a Company in Timor-Leste
The Timorese government permits various forms of businesses to lure in foreign investment. The various forms of business in Timor-Leste are the following:
1. Sole Proprietorship
- This is a non-incorporated entity
- Simple and doesn’t require much to set up
- Liability is not limited and covers the business owner’s assets
- Formed by 2 persons or more, in which partners assume joint responsibilities.
- Liability is not limited and covers the personal assets of the partners.
3. Branch, Representative Office or Subsidiary
- Can be established by a foreign company.
- Only for exploring and developing the infrastructure and various resources.
4. Company – There Are 3 Different Types of Entities Which Could Be Formed by the Applicant.
a) Single Shareholder Limited Liability
i. Requires at least one (1) shareholder
ii. Requires a minimum share capital of USD 5,000
b) Limited Liability Company
i. Requires at least two (2) or a maximum of thirty (30) shareholders
ii. Requires a minimum capital of USD 5,000
c) Joint-Stock Company
i. Requires a minimum of three (3) shareholders
ii. Requires a minimum share capital of USD 50,000
Basically, to incorporate any of the above in Timor-Leste, the applicant has to make sure they are in compliance with the requirements. Upon completion, the applicant must submit the documents to the Public Registry Department in the National Directorate for Registry and Notary under the Ministry of Justice.
Register Your Company in Timor-Leste with 3E Accounting
Thanks to its natural advantages, there are many business opportunities in Timor-Leste, making it a good environment for company incorporations. Combining this with the hardworking and professional local talents that inhabit the island, the potential growth of Timor-Leste is attractive to entrepreneurs and businessmen alike. The process to register a company in Timor-Leste is simple when broken down but it can also be quite tedious and complicated. We provide these services to simplify your integration into the economy in Timor-Leste, should you require any assistance or services. Contact us today!