Doing Business with Timor-Leste

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

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

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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: Semi-presidential republic
  • Population: Approximately 1.3 million
  • GDP: Around $2.1 billion USD
  • Corporate Tax Rate: 10%
  • Personal Income Tax Rate: Progressive rates up to 10%
  • Major Exports: Oil and gas, coffee, sandalwood
  • Major Imports: Machinery, vehicles, foodstuffs, fuel

 

Exporting goods to Timor-Leste involves several key steps. Here’s a detailed guide:

  1. Research Market Requirements

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

    • Determine the Harmonized System (HS) code for tariff and regulation details.
  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 non-tariff measures.
  5. Select a Reliable Freight Forwarder

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

    • Ensure your products meet local 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. Track and Confirm Delivery

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

Key Contacts

 

Importing goods into Timor-Leste involves several key steps. Here’s a detailed guide:

  1. Register as an Importer

    • Ensure your business is registered with the Timor-Leste Customs Authority.
  2. Classify Your Goods

    • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.
  3. Check Import Requirements

    • Verify any specific licenses or permits required for your goods.
  4. Prepare Documentation

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

    • Engage a licensed customs broker to assist with the import process.
  6. Submit Import Declaration

    • File the import declaration with the Timor-Leste Customs Authority.
  7. Pay Duties and Taxes

    • Calculate and pay any applicable import duties and taxes.
  8. Arrange for Cargo Clearance

    • Coordinate with your freight forwarder or customs broker for the clearance and delivery of goods.

Key Contacts

Incorporating a company in Timor-Leste involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the type of company, such as a Limited Liability Company (LLC).
  2. Reserve a Company Name

    • Submit a name reservation request to the Serviço de Registo e Verificação Empresarial (SERVE).
  3. Prepare Required Documents

    • Draft the Articles of Association and gather identification documents for directors and shareholders.
  4. Register the Company

    • Submit your application to SERVE, including all required documents and the registration fee.
  5. Obtain a Tax Identification Number (TIN)

    • Register with the National Directorate of Domestic Revenue to obtain a TIN.
  6. Register for Social Security

    • Enroll employees in the national social security system.
  7. Open a Bank Account

    • Open a corporate bank account to manage company finances.
  8. Obtain Business Licenses

    • Apply for any industry-specific licenses or permits required for your operations.

Costs

  • Registration Fee: Costs vary depending on the type and size of the business.
  • Additional Fees: May include name reservation and licensing fees.

Key Contacts

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

  1. Conduct a Feasibility Study

    • Assess market demand, site suitability, and resource availability.
  2. Choose a Business Structure

    • Decide on the type of business entity, such as a Limited Liability Company (LLC).
  3. Register the Company

    • Register with the Serviço de Registo e Verificação Empresarial (SERVE).
  4. Secure Financing

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

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

    • Apply for environmental, construction, and operational permits from local authorities.
  7. Design and Construct the Facility

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

    • Acquire machinery that 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 Timor-Leste involves several key steps. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Check the availability of your trademark through the National Directorate of Intellectual Property.
  2. Prepare Your Application

    • Gather necessary details, including the trademark design and a list of goods/services.
  3. File the Application

    • Submit your application to the National Directorate of Intellectual Property.
  4. Pay the Application Fee

    • Fees vary based on the type and number of classes. Check with the Directorate for current rates.
  5. Application Examination

    • The Directorate examines the application for compliance and potential conflicts.
  6. Publication for Opposition

    • If approved, the trademark is published for opposition, allowing others to contest it.
  7. Receive Registration Certificate

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

Costs

  • Application Fee: Varies based on the number of classes and application type. Contact the Directorate for specific fees.

Key Contacts

Resolving commercial disputes in Timor-Leste involves several key steps. Here’s a detailed guide:

  1. Consult Legal Counsel

    • Engage a lawyer experienced in Timorese commercial law for advice.
  2. Attempt Negotiation

    • Try to resolve the dispute amicably through direct negotiation between parties.
  3. Mediation

    • Use mediation services to facilitate a resolution. This can be quicker and less costly.
  4. Arbitration

    • Consider arbitration if available through recognized institutions.
  5. Litigation

    • If necessary, file a lawsuit in the appropriate Timorese court. Be prepared for a formal legal process.
  6. Enforcement of Judgments

    • Ensure the court’s or arbitration’s decision is enforced through the relevant authorities.

Costs

  • Legal Fees: Vary depending on the complexity and duration of the dispute.
  • Court Fees: Required for litigation, depending on the case specifics.
  • Mediation/Arbitration Fees: Vary based on the service provider.

Key Contacts

Social and Cultural Factors

  • Language and Communication
    • Tetum and Portuguese are official languages. English and Indonesian are also used in business.
  • Business Etiquette
    • Building relationships and trust is crucial. Understanding local customs and showing respect for hierarchy is important.

Political Environment

  • Stability and Regulations
    • Timor-Leste is a semi-presidential republic. Stay informed about political developments and regulatory changes.

Economic Factors

  • Foreign Exchange
    • The official currency is the US Dollar (USD). Monitor exchange rate fluctuations for budgeting and financial planning.
  • Market Opportunities
    • Key sectors include oil and gas, agriculture, and tourism.

Legal and Regulatory Environment

  • Rule of Law
    • The legal system is developing. Ensure contracts are clear and legally sound.
  • Intellectual Property
    • Trademark and patent protection are available. Register your IP to secure rights.

Additional Considerations

  • Infrastructure
    • Infrastructure development is ongoing. Assess transportation and communication facilities for specific needs.
  • Corruption and Bureaucracy
    • Be aware of potential bureaucratic challenges and the importance of due diligence.

Key Resources

Our Members Include Leading Organizations in Timor-Leste

Ask our Experts on Doing Business in/with Timor-Leste

If you’re looking to do business or invest in Timor-Leste, 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.