The Timorese government actively promotes East Timor as a site for trade. Due to its reduced taxation and other advantages for foreign enterprises, Timor is the perfect place for business. Individuals and corporations that pay taxes are subject to a flat 10% tax on their earnings.
Another justification for establishing a firm in Timor is the possibility of it becoming the 11th member of ASEAN.
This suggests that East Timor will become a new participant in the ASEAN Free Economic Agreement. Because of its fiscal policy, as well as being close to Australia and other important Asian countries, it can act as a portal for companies wishing to reach the booming Asian economies and has the opportunity to develop into a hub for financial markets.
The information technology industry is one of the leading ones among all sectors. If you intend to enter this market, you are making the ideal decision because the state is attempting to develop it further in the future. The potential for the East Timor IT sector is covered in this piece, along with information on how to launch a corporate there.
Scope of IT in East Timor
East Timor’s economic analysts claim that the IT industry is dynamic, fiercely competitive, and swift to embrace new technologies. For the nation, this would represent a completely different atmosphere. The nation’s other industries can gain from the IT sector’s developments.
Despite its rapid growth, the industry is still in its early stages of development. To grow it into one of the county’s main sectors, there is still a need for numerous initiatives and state motives.
Start the IT business
The actions you must take to launch an IT company in the nation are listed below.
Market analysis
The first step you should take if you have a brilliant IT company idea is to conduct market or field research. You may identify your target market and learn more about the nature of your IT firm with the help of the study. The goal of market research is to verify the validity of a trade idea concerning its approach, target market, offerings, and other factors.
A company needs to watch, interact with, and constantly pay attention to the market system to be market-driven.
Construct a technical team
You must assemble a technical staff before you can launch your tech company. One of the main issues the majority of start-ups experience is finding an effective crew to carry out the project.
Try to capture the market’s gurus with limited funds and shorter timeframes. Choose expertise based on your scope and details of the project, etc.
Minimum Viable Product (MVP)
The MVP, or minimum viable product, is the simplest form of your commodity (made fast and inexpensively), and its purpose is to determine whether or not customers are intrigued and ready to pay for it.
The team comes together, builds the model, and evaluates the answer with end users during this phase, which also covers product concept and production.
Obtain the funding
To establish an IT business, you’ll need a huge sum of money, therefore you must determine from where you will get it. You may be able to finance your enterprise on your own, without the need for loans. Make a solid financial plan after learning as soon as possible what your upfront costs will be.
Pay attention to your spending as well. Don’t overpay when starting a business. Recognize the types of investments that are wise for your business, and avoid paying too much for costly new equipment that won’t further your organization’s goals. Monitor your corporate spending to make sure you are on the right track.
The appropriate business form
You should employ a range of corporate structures depending on the goals of your organization. Every type of construction has advantages and disadvantages of its own. The right form of structure ensures improved asset security and tax efficiency. Limited liability partnerships, limited liability companies, and joint stock companies are the top structures in East Timor.
Register the business
You must register your business if the study and testing are completed. The process of registering a company is straightforward and can usually be finished in two to three business days. Following the issuance of the Corporate Registration Card and the TIN, a corporate license must be requested at the National Agency for Domestic Trade.
