Are you considering expanding your company into new markets overseas? One popular global expansion route involves setting up a subsidiary in the country of your choice. However, this process isn’t always an option for companies with limited resources, time, or personnel.
When you work with Globalization Partners, you’ll discover another way to expand your company — without the need to register an entity in-country. Through our Palau subsidiary outsourcing services, you can focus on managing your company while we manage the rest.
How to Set Up a Palau Subsidiary
The Palau subsidiary setup process involves a series of steps. First, you’ll need to determine what kind of entity you want to register. You can select from several popular company types, including sole ownership, partnership, or limited liability company (LLC).
Once you’ve determined what kind of entity will work best, follow these steps to legally register your company in-country:
- Deposit the required amount of capital in a local bank account and gather a record of the deposit.
- Reserve your company’s name with the Corporate Registrar at the Office of the Attorney General.
- Hire an attorney to prepare and notarize your articles of incorporation. These documents must include your company name, location, intent, shares, directors, duration, incorporators, and details of any local or noncitizen ownership.
- Pay a registration fee to the Bureau of National Treasury.
- Register your company with the Corporate Registrar and obtain a certificate of incorporation.
Once you’ve received the certificate, you can obtain an employer identification number and begin registering employees for social security. The final steps for a successful subsidiary setup involve applying for a business license from the state government and paying the applicable fee.
Palau Subsidiary Laws
Setting up a subsidiary in Palau comes with a few considerations. For example, you will need to deposit capital in a local bank to start the incorporation process. However, you cannot open a corporate bank account until you have the official incorporation documents. To abide by this local law, you will need to either open a personal bank account or deposit the capital in your local attorney’s trust account.
Benefits of Setting Up a Palau Subsidiary
Establishing a subsidiary provides various advantages. Chief among these is that by operating as a separate entity from your parent company, you can create a distinct company culture that aligns with in-country etiquette and norms. This can create an attractive environment for local talent.
When you work with Globalization Partners, you can reap these rewards while skipping the extensive process of setting up a subsidiary. We’ll hire your employees through our local entity, saving you the time, hassle, and expense of the registration process. Our in-house team of legal experts ensures every detail remains compliant, and we’ll handle the risk so that you can handle your company with confidence.
Other Important Considerations
Keep in mind that you will have to invest both capital and time to set up a local subsidiary. The registration and licensing processes typically take a minimum of three weeks. You will also need to gather a lump sum investment to deposit, which will vary depending on the size of your entity, as well as pay several hundred dollars in processing fees. If you hire a local attorney to handle the incorporation process, you’ll need to factor these legal fees into your setup budget as well.
Let Globalization Partners Help With Your Expansion
If you don’t have the time, means, or in-house personnel to handle incorporating your company, Globalization Partners can help. We’ll expedite the process, hire your employees, and set them up to work for you right away, eliminating the need to register your own entity. Contact us today to learn more about our global PEO solutions.