Papua New Guinea
Papua New Guinea
English, Tok Pisin, Hiri Motu, and over 800 indigenous languages
8,948,701 (as of July 2020)
Q: What is the process for forming a company in Papua New Guinea?
A: The process for forming a company in Papua New Guinea involves several steps, including selecting a company name, preparing and filing articles of incorporation, obtaining a tax identification number, registering for goods and services tax (GST), and obtaining necessary licenses and permits.
Q: What types of companies can be formed in Papua New Guinea?
A: Papua New Guinea allows for the formation of various types of companies, including private companies, public companies, foreign companies, and non-profit companies.
Q: Is there a minimum share capital requirement to form a company in Papua New Guinea?
A: Yes, there is a minimum share capital requirement to form a company in Papua New Guinea. The minimum share capital requirement varies depending on the type of company, but ranges from PGK 1,000 for private companies to PGK 50,000 for public companies.
Q: Do I need to have a physical office in Papua New Guinea to form a company?
A: Yes, a physical office in Papua New Guinea is required to form a company. The office must be located in Papua New Guinea and meet certain requirements, such as having a registered address and a phone number.
Q: What are the tax implications of forming a company in Papua New Guinea?
A: Papua New Guinea has a corporate income tax rate of 30%, but there are certain exemptions and deductions available for businesses. Additionally, companies may be subject to GST and other taxes based on their specific business activities.
Q: How long does it take to form a company in Papua New Guinea?
A: The time required to form a company in Papua New Guinea can vary depending on the type of company and the complexity of the registration process. In general, it can take several weeks to several months to form a company in Papua New Guinea.
Q: What are the ongoing compliance requirements for companies in Papua New Guinea?
A: Companies in Papua New Guinea are required to comply with various ongoing compliance requirements, such as filing annual tax returns and financial statements. Additionally, companies may be subject to other requirements based on their specific business activities.
Q: Can a foreigner form a company in Papua New Guinea?
A: Yes, foreigners are allowed to form companies in Papua New Guinea. However, they may be subject to certain restrictions and requirements, such as obtaining a work permit and a local business license.
Papua New Guinea has a strong and growing economy, with a GDP of $27.3 billion in 2019. This is a 4.2% increase from the previous year, making it one of the fastest growing economies in the Pacific region. The country is rich in natural resources, including oil, gas, gold, copper, and timber, which account for a large portion of its exports. The services sector is also a major contributor to the economy, with tourism, banking, and telecommunications all playing a significant role. The unemployment rate in Papua New Guinea is relatively low, at 4.2%, and the inflation rate is also low, at 2.2%. The country has a strong banking system, with the Bank of Papua New Guinea being the largest financial institution. The government has implemented a number of reforms to improve the business environment, including reducing red tape and improving access to finance. Overall, Papua New Guinea has a strong and growing economy, with a bright future ahead.
In Papua New Guinea (PNG), both individuals and corporations are subject to income tax.
For individuals, the tax year runs from 1 January to 31 December. The tax rates are progressive, with rates ranging from 0% to 42%. The tax system also includes a Goods and Services Tax (GST), which is set at a rate of 10% and is applicable to most goods and services sold or supplied within PNG.
For corporations, the tax year is the same as the company's financial year. The corporate tax rate is 30%, with a 10% rate for non-resident companies. There are also a number of tax incentives available for certain industries and activities, such as agriculture and tourism.
Taxpayers in PNG are required to file an annual tax return by 30 April of the following year, and pay any tax owed by the same date. Payment of tax can be made either in a single lump sum or through regular instalments throughout the year.
Taxpayers are also required to register with the Internal Revenue Commission (IRC) and obtain a Taxpayer Identification Number (TIN). The IRC is responsible for administering the tax system in PNG and ensuring compliance with tax laws and regulations.
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