The offshore Republic of Nauru is a small coral island in the west of the Pacific Ocean. The area of the state, the smallest outside Europe, is only 21 square meters. km, and is home to 13 649 people. Nauru has no official capital, but Yaren is considered the unofficial capital – the city where the airport is located and the parliament sits. In 1968 Nauru declared independence from New Zealand, Great Britain, and Australia.
The official languages of the state are Nauruan and English. The state currency is the Australian dollar (AUD).
Since 1990, Nauru has been retrained into an offshore zone with large content, relative to the area of the island, of offshore banks. However, after sanctions from the FATF in 2003, Nauru abandoned offshore banks and prohibited their registration in the territory of the jurisdiction. Investors’ passports became a new source of foreign income for the island, but this initiative had to be abandoned. Now Nauru is one of the few jurisdictions that provide an opportunity to register an offshore company, but at the same time, it is not included in the “black” lists.
Let’s consider how to register an enterprise in offshore Nauru, what conditions are provided to entrepreneurs and why the jurisdiction is attractive.
Benefits of registering a company in Nauru
First of all, it should be noted that Nauru’s economy is in decline after the phosphorite deposits dried up. The remote location of the island from the main sales markets and the inability to properly cultivate plants for export have led to the fact that for foreign investors in Nauru, a real tax haven. There is no income tax in the Republic of Nauru. There is also no tax on capital gains and distributed dividends.
Otherwise, Nauru is like a post-apocalyptic island. Most of the territory is unsuitable for growing plants due to phosphorite mine workings. The relatively cultivable coastal areas allow the cultivation of mangoes, papayas, breadfruit, bananas, pineapples, and coconut trees only for the local market. Even though Nauru is surrounded by water on all sides for many kilometers, the fishing industry is in its infancy. There are only two fishing boats on the island and they only handle the catch for the local market.
It is difficult to call Nauru a prosperous country. In addition to income from offshore companies, the island receives financial and humanitarian aid from Australia.
How to open a company in Nauru
You can register a company in the Republic of Nauru in two days. To apply for registration, you will need to give:
- a memorandum on the establishment of an enterprise;
- company charter;
- copies of the passports of the founders;
- confirmation of the place of residence of the founders;
- the legal address of the company in Nauru.
You will need a registered agent from among the residents of the jurisdiction.
There are no strict requirements for the size of the authorized capital in Nauru, as a rule, an amount of about 1,000 USD or an equivalent amount in another currency is used. The authorized capital is declared, but it is not necessary to pay it. The authorized capital can be divided into several types of shares:
- with par value;
- no par value.
There are no restrictions on the status of directors and shareholders of an enterprise. They may not be residents of Nauru, individuals, or legal entities. You will need one director and one shareholder at least. A director cannot also be a shareholder.
The name must contain a prefix corresponding to the legal form of the company. Permitted to use:
- Limited, Ltd;
- Societe Anonyme, SA;
- Corporation, Corp;
- Incorporated, Inc;
- Limited Life Company, LLC;
- Public Limited Company, PLC.
The name must be unique and not allude to the names of existing businesses. The title can be in any language, but with the obligatory translation into English.
Regulation and peculiarities of company registration
The legislation of the jurisdiction allows you to buy a company in offshore Nauru if for some reason it was not possible to register the company in offshore Nauru. The activities of offshore organizations are regulated by three laws: “On Banking Structures” from 1975, “On Corporations” from 1972, and “On Insurance Companies” from 1974. Offshore companies are registered as IBCs.
Offshore businesses are allowed to conduct almost any legal activity. A license from a registrar is required only if the company plans to operate in the insurance, banking, trust, or reinsurance sectors.
As with most offshore companies, the company will not be able to do business with Nauru residents or own real estate on the island. In addition, you cannot act as a registered agent for other offshore companies.
There are no financial reporting requirements. Shareholders’ conferences can be taken anywhere in the world. There is no need to take the times of the meeting. All participants in an offshore company are guaranteed complete confidentiality.
The jurisdiction of Nauru is an independent republic based on the Westminster parliamentary system. President is elected from among the Members of Parliament for a three-year term.
The legislative branch is represented by a unicameral parliament, which includes 19 members. The deputies are elected for a three-year term. Even though the president is elected from among the deputies of parliament, from the moment he takes office, he cannot combine the work of a president and a deputy. The Prime Minister is at the head of the Parliament.
The judiciary is represented by the Supreme Court, the Court of Appeal, and District and Family Courts.