Avoiding Tax on International Acquisitions
Being in business is not easy. Especially in a country like Timor-Leste where English is not the primary language, you will need to do a lot of marketing to spread the word about your products. The Timor-Leste region is small in size, but a great resource for any type of business that wishes to flourish there.
A listing in the Timor-Leste Asia Online Small Business Directory would be thus highly recommended. Please do visit timor Leste online business directory now and begin to list your company now. It’s really simple. Once you have registered with them, you will receive a fully functional website with the necessary tools to help you get things started. As you know, Timor-Leste is an important tourist destination located in the east part of the Indonesian islands of the South East Asia. It is a small state-owned enterprise that are home to approximately eleven million people (out of twenty-two thousand population), and numerous international businesses that rely on the cheap labor provided by the island.
If you are planning to open a business in Timor-Leste, then you should be well aware of the procedures involved in the process of company registration. First, you have to obtain the necessary documents from the office of the Secretary of State. A company registration in Timor-Leste would take around three months. However, if you apply in the east timor, then it can take even less time as the procedure would be quite fast.
Company Formation in Timor-Leste also requires filling of corporate tax and VAT forms. These are mandatory requirements that would take a lot of time to accomplish. An applicant will first need to submit his personal details to the Secretary of State in Timor-Leste. In order for an applicant to have his name accepted in a certain company registration in Timor-Leste, he has to ensure that all the requirements by the office of the Secretary of State have been met.
An applicant cannot run more than one business at any point of time in his life. Before running a business, the applicant must have his personal assets and salaries declared to the office of the Secretary of State. After this he can go ahead with business registration in Timor-Leste. The timor-leste corporation also has to be registered with the Trade and Industry Office of the country.
Company Registration in Timor-Leste also requires that the applicants create a partnership or a limited liability company. This is a mandatory requirement in company registration in Timor-Leste. Creating a partnership will result in double taxation in the east timor, which the applicant must be able to bear. If the company is established as a limited liability company, the timor law allows him to manage the funds in his company. This will help the timor based company to obtain loans from the banks easily.
An important aspect in company registration in Timor-Leste is the payment of taxes to the central bank of the country. The fee levied on these taxes differs from one region to another. A company needs to pay an annual income tax to the government of the country and a stamp duty that is applicable on the securities issued by the company. In case of a joint stock company, the shareholders might be required to pay corporate taxes to the parent company in case of some kind of turnover. The central bank of the country charges these taxes so as to make the economy of the country strong and so that the timor Leste investors continue to invest their money in the country.
After all these have been taken into account, the foreign investors will have to pay the appropriate amount of taxes to the timor-leste government authorities. There is no fixed rate for this fee. This can be done by approaching the Ministry of Finance or getting information from the internet. The timor-leste government may have a slightly different rule regarding this corporate tax rate but this fee is very common and paid by the foreign investors.