Micronesia, Fed. Sts.

Starting a Business in

Micronesia, Fed. Sts.

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Limited Liability Company
  • City: Island of Pohnpei (Palikir/Kolonia)

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No. Procedure Time to Complete Associated Costs
1 Check the uniqueness of the proposed company name and reserve a name

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


3 days USD 2 per signature
3 File the incorporation documents with the Registrar of the Companies

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

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 USD 3,719
5 Obtain the certificate of corporation


1 day no charge
6 Apply for a business license from the 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, USD 100 for retailing
7 Register for social security

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
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