#

Ease of Doing Business in

Papua New Guinea

Papua New Guinea Download Profile (1689.1KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 7,619,321
GNI Per Capita (US$) 2,112
City covered Port Moresby

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 119 133 up
14
57.29 53.92 down
3.37
Starting a Business 130 136 up
6
80.53 77.29 up
3.24
Dealing with Construction Permits 126 124 down
2
63.89 63.56 up
0.33
Getting Electricity 103 100 down
3
65.50 65.47 up
0.03
Registering Property 119 117 down
2
55.27 55.54 down
0.27
Getting Credit 32 109 up
77
70.00 40.00 up
30.00
Protecting Minority Investors 87 85 down
2
53.33 53.33
-
Paying Taxes 94 92 down
2
71.40 71.40
-
Trading across Borders 164 164
-
44.64 44.64
-
Enforcing Contracts 170 169 down
1
36.21 36.21
-
Resolving Insolvency 137 137
-
32.15 31.75 up
0.40

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 130

DB 2016 Rank: 136

Change in Rank: up6

DB 2017 DTF (% points): 80.53

DB 2016 DTF (% points): 77.29

Change in DTF (% points): up3.24

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: PGK 0
City: Port Moresby
Indicator Papua New Guinea East Asia & Pacific OECD high income
Procedure – Men (number) info_outline 6.0 7.0 4.8
Time – Men (days) info_outline 41.0 23.9 8.3
Cost – Men (% of income per capita) info_outline 15.6 19.0 3.1
Procedure – Women (number) info_outline 6.0 7.1 4.8
Time – Women (days) info_outline 41.0 23.9 8.3
Cost – Women (% of income per capita) info_outline 15.6 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

    Obtain a company seal

    Agency: Seal maker

    Although companies are not expressly mandated by law to make a company seal, they are required to have a seal to meet the Companies Act requirements for issuing share certificates for entering into deeds and contracts. The fee for a seal varies with its size but is about PGK 40–80. A seal can be obtained in a week and can also be applied for online: http://www.theodist.com/print-shop/custom-rubber-stamps .
    4 days PGK 60
    2

    Reserve company name and complete the registration process

    Agency: Registrar

    A company registration application must be submitted to the Registrar of Companies. Using standard Form 1, the application must include 3 proposed names of the company, the postal and street address of the registered office, and the number and names of the directors, the shareholders, and the secretaries.

    Form 1 must also be accompanied by
    - A certified copy of the company constitution, if applicable
    - Form 2, the consent of each director, which requires the full name, nationality, date of birth, and postal and residential addresses
    - Form 3, the consent of any secretary, which requires the full name, nationality, date of birth, and postal and residential addresses
    - Form 4, the consent of each shareholder, which requires each shareholder’s date of birth, full name or corporate name, nationality or country of incorporation, postal and residential addresses, number and class of shares, and consideration for shares
    - Form 6, an application for name reservation

    A company is no longer required to have a memorandum or articles of association. A proposed company may opt to have a constitution but is not required to do so.

    Total fees to register are

    Form 1 - PGK 400 (Online) and PGK 500 (Over the counter)
    Form 6 - PGK 50 (Online) and PGK 100 (Over the counter)
    7 days PGK 600
    3

    Register with the Tax Authorities and the Employment Register

    Agency: Internal Revenue Commission    

    Under the Income Tax Act, a company carrying on business or deriving income in Papua New Guinea must appoint a Papua New Guinea resident to be a public officer. The appointment must be made 3 months from the date the company starts business operations or derives income in the country, by written notice to the Internal Revenue Commission.
    All tax notices and forms are filed to the attention of the Internal Revenue Commissioner. Although different officers in this agency will likely attend to the separate notices and forms, these forms can be submitted to the Commissioner in a single filing. The procedure takes a week to a month.
    If a company employs one or more employees in Papua New Guinea with a weekly salary of more than PGK 126 a week, they must register as a “group employer” by submitting a written notice to the Internal Revenue Commission. No fees apply.
    Any business or individual whose annual turnover exceeds (or is likely to exceed) PGK 100,000, must register for goods and services tax (GST) by filing Form 1 with the Internal Revenue Commission. This standard form requires the company business name and a description of its proposed main business activities along with the street and postal address of the registered office and a statement of its monthly sales and liabilities (approximate). No fees apply.
    9 days no charge
    4

    Apply for a trade license from the National Capital District Commission

    Agency: National Capital District Commission

    Companies in Port Moresby must obtain a trading license from the National Capital District Commission.
    20 days PGK 50
    * 5

    Open an account at an Authorized Superannuation Fund (ASF)

    Agency: Authorized Superannuation Fund

    According to the amendment to the Superannuation (General Provisions) Act 2000, a company with 15 or more employees must contribute to an Authorized Superannuation Fund (ASF; a superannuation fund that the Central Bank has approved and licensed).

    An employer must remit its employer contributions to the ASF within 14 days of the end of each calendar month in which the relevant contribution is due for deduction from an employee's pay. It is an offence not to make contributions. Under the act, the Central Bank has the power to instigate proceedings against any offence by a person. It takes 7–10 days to open an account.
    9 days (simultaneous with previous procedure) no charge
    * 6

    Register workers with the private insurers for work injury

    Agency: Insurance company

    Although there is no registration requirement, it is an offence for an employer to employ any worker without an insurance or indemnity policy issued by a licensed insurer for injury to the worker arising out of or during employment. Registration time is 10–30 days.
    20 days (simultaneous with previous procedure) PGK 200

    * Takes place simultaneously with previous procedure.