Company registration in Palau is a procedure that will allow you to start a business in one of the popular island jurisdictions. More than 200 islands in the Republic of Palau are positioned on the western side of the Micronesian archipelago, 700 miles west of Guam, north of New Guinea, and east of the Philippines. The land area of ​​the state is approximately 170 square miles.

The jurisdiction has been associated with the United States of America since 1946. A judicial constitution was affirmed by the people of Palau in 1981. In 1994, the Republic of Palau became an independent state.

If you intend to open a business in Palau, please note that Palau, Japanese, and English are the official languages ​​of the country. Currency – USD. It is worth noting that the local government encourages foreign investment, especially in the areas of infrastructure improvement, tourism, and the export industry. Before registering a company in Palau and opening an account in Palau, it is important to determine if the business you have chosen falls within the list of permitted activities. Some industries are inaccessible to non-resident companies by the law. These include wholesale and retail trade, land and water transportation, diving, restaurant, and resort business.

Company registration in the Republic of Palau: Available OPF

Entrepreneurs who plan to start a business activity in this state often choose one of the following organizational and legal forms:

  • establishment of a corporation in Palau;
  • creation of a small business; or
  • registration of a joint venture.

To open a firm in Palau, founders must apply, articles of incorporation and Articles of Association to the appropriate regulatory authorities.


  1. the name of the company;
  2. address;
  3. the planned type of activity;
  4. information about promotions;
  5. data of directors and founders;
  6. property information; as well as
  7. data on foreign ownership.

Terms of business registration in Palau – about a month

Palau tax system

  • No income tax;
  • Income tax – 4% of the gross receipts of the company. Paid quarterly (within 30 days after the end of the quarter). For financial institutions – 4% of net profit;
  • Payroll tax – 6% and 12% depending on the amount;
  • Employee Social Security Tax is levied every quarter at 6% of the first gross income.

Please note that certain activities require a license in Palau. The cost of the licensing procedure may vary. You can find out more detailed information on this issue by signing up for a consultation on business regulation in the Republic of Palau.

Pros for registering a company in Palau

  • High rates of economic growth.
  • Free trade.
  • Low costs.
  • Active infrastructure improvement.
  • Encouraging foreign investment and increasing private investment.

The types of firms that can be incorporated in Palau are listed below:

  • Limited Liability Company;
  • Private company;

To promote employment in Palau, the country has introduced an annual levy of $ 500, which is levied by foreign corporations for every non-local worker.

  • Registration of a company in Palau, as a rule, is accompanied by the fulfillment of these requirements of the Regulator:
  • A minimum number of directors: one.
  • A minimum number of shareholders: two.
  • Register a unique company name.
  • Register office space.
  • Prepare a list of standard documents with information about the company, translated into the appropriate language and certified by a notary.
  • Open an account in Palau.
  • Submit an application and Articles of Association for confirmation by the registrar.
  • Obtain a license to operate if necessary.


Maintenance and submission of financial statements are mandatory.

An audit is required.