As you plan your international expansion, you may consider setting up a subsidiary in your country of choice. While it may sound like the obvious choice, companies with limited resources and personnel often find the incorporation process to be expensive and time-consuming. When you work with Globalization Partners, we save you time and hassle. Skip the subsidiary setup process and start operating your overseas company right away through our comprehensive Kiribati subsidiary outsourcing services.
How to Set Up a Kiribati Subsidiary
The country offers several different kinds of company structures. One of the first steps in setting up your subsidiary involves choosing the best option from four primary business models:
- Sole trader: You operate your subsidiary independently and take on all legal risks for the company, including any debts.
- Partnership: In this single business structure, two or more people share ownership of the company.
- Private limited liability company (LLC): Members aren’t personally liable for the company’s debts, and shareholders are limited in their ability to transfer shares publicly.
- Cooperative: This type of company is focused on providing a service to members rather than maximizing profits.
Once you’ve determined the best business model, the next step in establishing a subsidiary involves depositing a certain amount of capital into a local bank account. The amount depends on the size of your company. Next, you must:
- Register your company with the Ministry of Commerce, Industry, and Cooperatives (MCIC).
- Obtain a certificate of company name registration.
- Register for taxes if your revenue is $5,000 or more.
- Register as an employer with the Kiribati Provident Fund (KPF).
- Apply for a business operational license from the local licensing authority in your region.
Kiribati Subsidiary Laws
The national subsidiary laws are fairly straightforward, but you will need to obtain proper documentation from several government organizations to remain legally compliant. This generally includes registering your company name with MCIC, registering for taxes, and registering as an employer with the KPF. Failing to follow these steps means you can’t operate a legally licensed subsidiary in-country.
Benefits of Setting Up a Kiribati Subsidiary
Setting up a subsidiary comes with several benefits. Because your subsidiary will become its own entity from your parent company, you can modify your workplace culture and benefits to best suit the business norms in-country. This can give you added freedom and flexibility as you attempt to draw top talent.
Working with Globalization Partners allows you to enjoy these benefits – without having to go through the lengthy and expensive process of establishing a subsidiary. Instead, we’ll take on the responsibility of hiring and onboarding your new employees through our established local subsidiary. As a result, you can rest easy knowing every step of the process complies with local regulations. You can also jump straight into operating your overseas company.
Other Important Considerations
Setting up a subsidiary involves capital and time. To begin the process, you’ll need to deposit a certain sum in a local commercial bank called ANZ Kiribati. You will be required to show documentation of this deposit to complete the necessary paperwork and obtain the correct permit and business license. The process also requires meeting with several government bodies and can take several weeks.
Let Globalization Partners Help With Your Expansion
Expanding your company overseas doesn’t have to be time-consuming and expensive. When you work with Globalization Partners, you can experience an expedited process without having to set up your own subsidiary in-country. We’ll hire your employees, manage their payroll, and ensure every detail is up to code. Contact us today to learn more about how our global PEO services could be your ideal solution.