Doing Business with Palau

A comprehensive guide to doing business, exporting, investing, and manufacturing in Palau.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Albanian Investment Development Agency

Tel: +355 42 251 001
Email: info@aida.gov.al
Web: www.aida.gov.al

null

General Directorate of Customs

Albania General Directorate of Customs - International Trade Council

 

Tel: +355 42 253 820
Email: helpdesk.dpd@dogana.gov.al
Web: www.dogana.gov.al

National Chamber of Commerce

Albanian Chamber of Commerce and Industry

Albanian Chamber of Commerce and Industry - International Trade Council

Tel: +355 45 800 932
Email: cci.tirana@cci.al
Web: www.cci.al

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance and Economy, Albania

  • Type of Government: Presidential Republic
  • Population: Approximately 18,000
  • GDP: Around $300 million USD
  • Corporate Tax Rate: 4% to 21% (varies by income)
  • Personal Income Tax Rate: 9% to 12% (progressive rates)
  • Major Exports: Fish, garments, copra
  • Major Imports: Machinery, fuels, foodstuffs

 

Exporting goods to Palau involves several key steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Palau’s import regulations and product standards.
  2. Identify Your Product’s HS Code

    • Determine the Harmonized System (HS) code to understand tariffs and regulations.
  3. Prepare Documentation

    • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.
  4. Check Tariff and Non-Tariff Barriers

    • Verify any tariffs and ensure compliance with Palau’s non-tariff measures.
  5. Select a Reliable Freight Forwarder

    • Choose a logistics provider experienced in shipping to Palau.
  6. Comply with Labeling and Packaging Regulations

    • Ensure your products meet Palauan labeling and packaging standards.
  7. Arrange for Insurance

    • Secure insurance to cover potential shipping risks.
  8. Submit Customs Declaration

    • Work with your freight forwarder to submit the necessary customs declaration.
  9. Pay Applicable Duties and Taxes

    • Calculate and pay any required import duties and taxes.
  10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

Importing goods into Palau involves several key steps. Here’s a detailed guide:

  1. Research Import Regulations
    • Understand Palau’s import laws and product-specific regulations.
  2. Obtain Necessary Licenses

    • Check if your products require special import licenses or permits.
  3. Classify Your Goods

    • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.
  4. Prepare Documentation

    • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.
  5. Choose a Customs Broker

    • Hire a licensed customs broker to assist with the import process.
  6. Comply with Labeling and Packaging Standards

    • Ensure products meet Palauan labeling and packaging requirements.
  7. Submit Customs Declaration

    • File a customs declaration with the Bureau of Customs and Border Protection.
  8. Pay Duties and Taxes

    • Calculate and pay any applicable import duties and taxes.
  9. Arrange for Transportation and Delivery

    • Coordinate with a logistics provider to transport goods to their final destination.
  10. Track and Confirm Receipt

    • Monitor shipment progress and confirm delivery upon arrival.

Key Contacts

Incorporating a company in Palau involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the type of company: Corporation, LLC, etc.
  2. Reserve a Company Name
    • Check availability and reserve your company name through the Palau Corporate Registry.
  3. Prepare Founding Documents

    • Draft the Articles of Incorporation and other necessary documents.
  4. Submit Incorporation Documents

    • File the incorporation documents with the Palau Registrar of Corporations.
  5. Obtain a Business License

    • Apply for a business license from the Bureau of Revenue and Taxation.
  6. Register for Taxes

    • Register with the Bureau of Revenue and Taxation for tax purposes.
  7. Open a Bank Account

    • Open a corporate bank account for financial transactions.

Costs

  • Registration Fee: Varies based on company type and capital.
  • Business License Fee: Depends on business activities.

Key Contacts

Setting up a manufacturing plant in Palau involves several key steps. Here’s a detailed guide:

  1. Conduct a Feasibility Study

    • Analyze market demand, location, and resources.
  2. Choose a Business Structure

    • Decide on the type of business entity, such as a Corporation or LLC.
  3. Register the Company

    • Register your company with the Palau Registrar of Corporations.
  4. Secure Financing

    • Arrange funding through loans or investors.
  5. Select a Location

    • Choose an industrial area with access to infrastructure and resources.
  6. Obtain Necessary Permits and Licenses

    • Apply for construction permits, environmental approvals, and industry-specific licenses.
  7. Design and Construct the Facility

    • Hire architects and contractors to design and build the plant.
  8. Purchase and Install Equipment

    • Acquire machinery and ensure it meets safety and operational standards.
  9. Hire and Train Employees

    • Recruit skilled workers and provide necessary training.
  10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

Registering a trademark in Palau involves several steps. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique by searching existing trademarks in Palau.
  2. Prepare Your Application

    • Gather necessary details, including the trademark design and the list of goods/services it will cover.
  3. Submit the Application

    • File your application with the Palau Office of the Attorney General.
  4. Examination Process

    • The application will be examined for compliance and potential conflicts with existing trademarks.
  5. Publication for Opposition

    • If approved, the trademark is published for a period during which others can oppose it.
  6. Receive Registration Certificate

    • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

  • Application Fee: Fees may vary; check with the relevant authority for the latest rates.

Key Contacts

Resolving commercial disputes in Palau involves several steps. Here’s a detailed guide:

  1. Consult Legal Counsel

    • Engage a lawyer experienced in Palauan commercial law for guidance.
  2. Attempt Negotiation

    • Try to resolve the dispute amicably through direct negotiation with the other party.
  3. Mediation

    • Consider mediation with a neutral third party to facilitate a resolution.
  4. Arbitration

    • Use arbitration for a binding resolution if both parties agree.
  5. Litigation

    • If other methods fail, file a lawsuit in the appropriate court. Prepare for a formal legal process.
  6. Enforcement of Judgments

    • Ensure the decision is enforced through the relevant authorities.

Costs

  • Legal Fees: Vary based on the complexity and length of the dispute.
  • Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

When considering business in Palau, it’s important to understand various factors:

Social and Cultural Factors

  • Language: Palauan and English are official languages.
  • Business Etiquette: Emphasizes respect and relationship-building. Understanding local customs is important.

Political Factors

  • Government: Democratic republic with a stable political environment.
  • Regulations: Business-friendly policies, but processes can be bureaucratic.

Economic Factors

  • Currency: U.S. Dollar (USD).
  • Foreign Investment: Encouraged, with opportunities in tourism and fishing industries.

Foreign Exchange

  • Exchange Rate: Not applicable due to the use of USD.
  • Regulations: Few restrictions on currency exchange.

Rule of Law

  • Legal System: Based on U.S. law; provides a stable framework for business operations.
  • Intellectual Property: Protections are in place, aligned with international standards.

Infrastructure

  • Transport: Developing infrastructure with ongoing improvements in roads and ports.
  • Utilities: Reliable access to electricity and water, though improvements are ongoing.

Key Contacts

Our Members Include Leading Organizations in Palau

Ask our Experts on Doing Business in/with Palau

If you’re looking to do business or invest in Palau, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.