Business in Nauru

A sole trader is an individual carrying on business personally. A partnership operates through two or more partners, while a corporation or company is a separate legal structure with its own incorporation record. The usual sequence in Nauru is to determine the location, choose the structure, obtain a TIN, register the business name, apply for the business licence and then complete any required partnership, corporation, beneficial-ownership or sector-specific registration. A beneficial owner is the individual who ultimately owns or controls the business. Import, security, gaming and other activities may require additional approvals. A complete application should include identification, a birth certificate, a passport photograph and proof of fee payment. A corporation generally also needs Form 1, at least two directors, director consents, a registered office, its memorandum and articles, current police clearances, a nominated officer, beneficial-owner information, a TIN and identification documents. A partnership generally needs Form 1, a nominated officer, beneficial-owner registration, a TIN and identification documents. Allow at least seven days for a complete application; requests for additional documents can extend the period. The listed fees for a sole trader are AUD 200 for the business name and AUD 300 for the business licence. A partnership has the same business-name and licence fees, plus AUD 25 for the nominated officer and AUD 50 for beneficial-owner registration; partnership registration itself is listed as having no fee. An additional AUD 300 applies where the business covers more than one business nature or district. A corporation certificate is listed at AUD 1,200, in addition to any applicable business-name, licence and beneficial-owner fees. The official sources reviewed do not consolidate a fixed FIC fee or special tariff, so the Nauru Foreign Investment Authority or Registrar should confirm it. The Department of Justice & Border Control handles business names, business licences, corporations, partnerships and beneficial owners. The Nauru Revenue Office handles TINs and business tax. The Department of Commerce and Foreign Investment has SME and foreign-investment responsibilities, while the Nauru Foreign Investment Authority handles foreign investment certificates. A business licence and relevant certificates must be displayed, renewed before expiry and kept current when business details change. Annual returns and other statutory filings apply, and the Registrar can provide a business search. Business and legal-entity records must be retained for at least seven years after cessation, winding-up or dissolution. Tax treatment depends on the taxpayer and its status. A resident company with gross revenue up to AUD 15 million is listed at 20% Business Profits Tax (BPT), while revenue above AUD 15 million is listed at 25%. A resident company controlled by non-residents and a non-resident company operating through a permanent establishment are listed at 25%. Individuals are listed at 20%, with a AUD 250,000 tax-free threshold for Nauruan-resident individuals. Partnerships and trusts are listed at 20%, with a AUD 250,000 threshold for each partner or beneficiary. A non-resident individual carrying on only a Nauru business with gross revenue no higher than AUD 250,000 may fall under Small Business Tax (SBT) at 2.5% of gross revenue. Resident persons are reported to have worldwide-income coverage under the current Nauru Revenue Office framework. BPT and SBT instalments and returns are due by the 15th day after each quarter, including 15 October, 15 January, 15 April and 15 July. The BPT annual return is due by 30 September, including when the business made a loss, and payment is due when filing. Businesses should retain accounting records and supporting evidence in Australian dollars. The Small Business Enterprises Act 2025 commenced on 9 April 2025. It created a National Coordinating Committee for Small Business Enterprises and a Small Business Enterprises Fund. Eligibility includes a corporation that is at least 70% Nauruan-held or controlled, a partnership with at least 70% Nauruan partners and a Nauruan sole trade, generally with projected or existing gross income of no more than AUD 75,000 per year. An application requires business and contact details, the TIN, structure, activity, years in business, employees, requested amount, purpose, identification, a business plan or proposal, ownership evidence and, where available, the licence. The Committee is expected to decide within 14 days. The fund supports areas such as trade, manufacturing, retail, services, information technology, agriculture, aquaculture, childcare, accommodation, food, tourism-related activities, arts and recreation. It does not guarantee a particular amount, approval or continuing availability because funding depends on appropriations, donor aid and other sources. Approved users must use funds for the stated purpose, provide six-month usage and progress reports and allow record access. False information can lead to sanctions. The Nauru Chamber of Commerce provides private-sector networking and representation. The current material does not establish a current official startup incubator, a guaranteed government loan or grant amount, or guaranteed market access. A foreign investor must treat the FIC process separately from ordinary business registration and licensing. Under the Foreign Investment Act 2025, which commenced on 9 April 2025, the investor applies to the Nauru Foreign Investment Authority before investing. Cabinet endorsement precedes approval. A foreign investor generally includes a foreign person conducting business in Nauru, a corporation that is at least 70% foreign-held or controlled, or a non-corporate body with at least 70% foreign partners or members. The business should start within 12 months after the FIC is issued; an extension should be requested at least three months before expiry. An appeal must be filed in writing within 14 days. An annual business report, including audited financial statements, is due within eight months after the financial year, and the Authority may set Nauruan employment percentages. Cabinet may provide tax or customs incentives. Foreign investors are restricted from areas including phosphate, airlines, shipping, power and water utilities, land rehabilitation, underwater fibre-optic cables, certain products made from Nauru stones, pinnacles or trees, grocery retail and wholesale, agriculture, cultural attractions, cafés, bakeries, pastry businesses, galleries, restaurants and traditional or cultural handicraft retail. Hotel and accommodation projects appear in the reserved framework with a listed AUD 5 million capital-investment threshold, so the Authority should confirm how that threshold applies to the proposed project. A later addition to the reserved list does not invalidate an already issued FIC. Local demand, imported supply, transport capacity, district charges and sector approvals should be assessed before committing capital. A business-licence transfer, variation or cessation uses the relevant form; listed variation fees include AUD 100 for a business-name variation, AUD 200 for a licence variation, AUD 300 through a local service provider and AUD 20,000 for a foreign-company regional category. Partnership variation is listed as having no fee. Winding-up or dissolution follows the applicable Act.