Procedures and Legal Requirements to Establish a Local Company
Doing Business in Solomon Islands
Solomon Islands has a small but sustainable economy, capable of delivering good investment outcomes in the primary industry, fisheries, forestry and mining sectors. The main competitive advantages are its abundance in untapped natural resources, an "open economy" in international trading and specializing in the production of goods and services. Thus, infrastructure and international connectivity are reasonably good and welcomes foreign investment.
Corporate Structure
Upon receipt of the COR, the applicants can apply for incorporation of a company. The application fee to register a company in Solomon Islands is SB$1,250.00 (or US$152.25 equivalent). There are four main types of company:
- Single shareholder company
- Private Company (Minimum of one and maximum of 50 shareholders)
- Public Company (More than 50 shareholders)
- Community Company
A private company can convert into public company or vice versa under the Act. While the Companies Act 2009 does not state the minimum amount of paid-up capital, one per cent stamp duty will be levied on the authorised capital of the company.
Foreign Investment Requirements
Foreign individuals or companies doing business in Solomon Islands must be registered under the Foreign Investment Act 2005 and hold a current Certificate of Registration (COR) under that Act. The Act has a standard form of application which requires some detail. In addition to filing a business plan, foreign individuals or companies must provide details of:
- Employment of expatriate employee
- Particulars of employment and training for indigenous Solomon Islanders
- A localized plan to demonstrate benefits in training and employment for indigenous Solomon Islanders