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Ease of Doing Business in

Micronesia, Fed Sts

Micronesia, Fed Sts Download Profile (1607.4KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 104,460
GNI Per Capita (US$) 3,201
City covered Island of Pohnpei (Palikir/Kolonia)

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 151 148 down
3
49.48 49.48
0.00
Starting a Business 167 161 down
6
69.73 69.64 up
0.09
Dealing with Construction Permits 143 140 down
3
60.92 60.97 down
0.05
Getting Electricity 107 103 down
4
64.32 64.40 down
0.08
Registering Property 187 187
-
0.00 0.00
-
Getting Credit 75 70 down
5
55.00 55.00
-
Protecting Minority Investors 185 186 up
1
25.00 25.00
-
Paying Taxes 108 105 down
3
68.78 68.78
-
Trading across Borders 57 55 down
2
84.00 84.00
-
Enforcing Contracts 183 183
-
29.39 29.39
-
Resolving Insolvency 119 118 down
1
37.65 37.66 down
0.01

DB 2017 Rank: 167

DB 2016 Rank: 161

Change in Rank: down6

DB 2017 DTF (% points): 69.73

DB 2016 DTF (% points): 69.64

Change in DTF (% points): up0.09

Standardized Company
Legal form: Limited Liability Company
Paid-in minimum capital requirement: USD 0
City: Island of Pohnpei (Palikir/Kolonia)
Indicator Micronesia, Fed Sts East Asia & Pacific OECD high income
Procedure – Men (number) info_outline 7.0 7.0 4.8
Time – Men (days) info_outline 16.0 23.9 8.3
Cost – Men (% of income per capita) info_outline 140.4 19.0 3.1
Procedure – Women (number) info_outline 7.0 7.1 4.8
Time – Women (days) info_outline 16.0 23.9 8.3
Cost – Women (% of income per capita) info_outline 140.4 19.0 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 12.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Check the uniqueness of the proposed company name and reserve a name

    Agency: Registrar of Corporations

    The Registrar of Corporations can perform a name search and reserve a corporate name for USD 20.
    1 day USD 20
    2

    Notarize the company documents

    Agency: Notary

    A notary must notarize the company documents.
    3 days USD 1.01 per page
    3

    File the incorporation documents with the Registrar of the Companies

    Agency: Registrar of Corporations

    The Registrar of Companies reviews the incorporation documents, and if they are acceptable, transmits the documents and the certificate of incorporation to the governor for approval. Although the law does not mandate the use of an attorney for company incorporation, a professional is normally used to avoid rejection of the application. The articles of incorporation include the following:
    - Company name;
    - Period of duration;
    - Company purpose;
    - Total number of shares;
    - Address of the registered office;
    - Number of directors and their names and addresses.

    The fee for professional services, if used, is an additional USD 750.
    7 days no charge
    4

    Obtain the payment receipt (four duplicates) and pay the registration fee and license fee at the Finance Office of the state government

    Agency: Finance Office of the Pohnpei State Government

    Fee schedule for licenses:
    - Up to the first 10,000 authorized shares: USD 0.10 per share;
    - More than 10,000 and fewer than 100,000 authorized shares: USD 0.15 per share;
    - More than 100,000 authorized shares: USD 0.20 per share.
    1 day see comments
    5

    Obtain the certificate of corporation

    Agency: Registrar of Corporations

    Business founders can obtain the certificate of incorporation at the Registrar of Corporations' Office.
    1 day included in procedure 4
    6

    Apply for a business license from the municipality

    Agency: Municipality

    Fee schedule for business license:
    - Retail: USD 100;
    - Manufacturing: USD 150;
    - Professional services: USD 300.

    The business license must be renewed every year.
    2 days depending on numbers and types of licenses, $100 for retailing
    7

    Register for social security

    Agency: Social Security Administration

    Companies must register with the Social Security Administration to pay social security tax withheld from employees.

    Social security tax is filed quarterly. The applicant needs to file the following documents:
    - Application form;
    - Incorporation charter and company bylaws;
    - Incorporation certificate;
    - Business license;
    - Record of employees (names, social security number, payroll record).

    The Social Security Administration issues an employer identification card in a business day.
    1 day USD 10