Business in Kiribati

The Business & Companies Regulatory Division (BCRD) handles business-name and company registration under the Registration of Business Names Act 1988 and Companies Ordinance Cap10A. A published schedule lists a $50 company-name reservation fee and incorporation fees linked to authorised share capital, with a minimum of $250 for the first $10,000; current forms and fees should be checked directly. A registered business also needs a business licence from the relevant local licensing authority for each jurisdiction and activity. Licences normally require annual renewal. A published foreign-investor guide lists a $5 application fee and a $50 late fee after March, while the final amount depends on the activity, category and turnover. The Ministry of Finance and Economic Development Tax Division issues a Taxpayer Identification Number (TIN), which identifies the business for tax administration. The published guide states that TIN registration is free and can take up to three days. Depending on the activity, the business may deal with excise, Pay As You Earn (PAYE), value-added tax (VAT) and income tax. VAT is 12.5% on most taxable supplies, and registration applies when taxable supplies exceed $100,000 in a tax year. VAT returns and payments are due quarterly within 15 days after the quarter. PAYE is generally remitted monthly within 15 days after the month, with annual PAYE and income-tax returns due within three months after the year ends. A business employing monthly-paid staff must register as an employer with the Kiribati Provident Fund (KPF) within 10 days after operations start where the relevant staff are hired; employees are generally registered within 30 days. KPF contributions total 15% of wages, split equally between employer and employee, and are submitted by the 15th of the following month. A foreign investor must obtain a Foreign Investment Certificate from the Investment Promotion Division before establishing the activity. Restricted, reserved and prohibited sectors apply. The published guideline allows up to 30 working days for a complete application, and investments above $250,000 may require a Cabinet recommendation and remain subject to final discretion. The certificate can lapse if the activity does not begin within one year, and an appeal to the Investment Appeal Panel can be made within three months. Immigration and work approvals may also be required. Sector approvals can include food, fisheries, tourism, transport, environmental, customs, consumer-protection and intellectual-property requirements; registration alone does not authorise every activity. The Business Promotion Centre (BPC) provides advisory services and training and supports areas such as investment, local industry, trade, quality, cooperatives and credit unions. Support is fragmented, and no universal startup grant or single all-in-one entrepreneurship authority is evidenced. The Cooperative & Credit Union Regulatory Division registers, audits, supervises, trains and advises cooperatives and credit unions under the Cooperative Societies Ordinance 1977 and Kiribati Credit Union Act 1990. Published registration fees are $25 for a primary cooperative, $50 for a secondary cooperative, $25 for a credit union and $50 for a league. The Development Bank of Kiribati (DBK) offers products including small and large development loans, rural support, local-produce and handicraft finance, and business loans. Published examples include a maximum of $1,500 for local-produce or handicraft finance with a $20 application fee and a maximum of $10,000 for a new or existing business loan. Business plans, financial records, KPF conditions and security may apply. Collateral, remoteness and freight can restrict access. South Tarawa has the greatest concentration of activity, while a Kiritimati MTCIC branch improves local access there. Outer-island trade commonly includes copra, fishing, fresh food, handicrafts, retail, transport, tourism and services, including informal or home-based activity. A business must keep tax records, invoices, returns and payment evidence and meet customs requirements when importing stock. Demand, remittances, fisheries and public or development procurement can affect revenue. Kiribati's dispersed islands, long travel distances across roughly 3.5 million square kilometres of ocean, limited connectivity, imported-input dependence, freight delays, drought, storms and sea-level exposure affect both startup and ongoing operation. When a business closes, is transferred or is sold, the owner should address tax, licence, creditor, employee and KPF obligations, assets, customs matters and registration records. Company insolvency or liquidation rules may apply, while informal asset, lease and land arrangements can make a transfer harder to document.