Timor-Leste

Starting a Business in

Timor-Leste

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: Private Limited Liability Company
  • City: Dili

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No. Procedure Time to Complete Associated Costs
1 Pay registration fees and deposit minimum capital at the Bank (BNU)

Registration fees are paid at a branch of Banco Nacional Ultramarino in Timor Leste, a government-designated bank. The minimum capital requirement is prescribed by the Commercial Registry Code, Articles 16 and 188.
1 day no charge
2 Obtain criminal record clearance from Ministry of Justice

The criminal record clearance is required for each founder of the company, shareholder, director and every person who have a role in the ownership, management and control of the future company.
1 day no charge
3 Verify uniqueness of company name and register at the Public Registry Department of the Ministry of Justice

According to Article 29 of the Commercial Registry Code, within 10 days, a company must verify the uniqueness of the company name and register at the Commercial Registry at the Ministry of Justice. The MOJ recently took over the process of name approval.

21 days no charge
4 Get proof of Business address from the Department of Land

The entrepreneur needs to get a proof of business address - a lease or title to the property-which must be certified by the Department of Land and Property. The Department of Land and Property must be supplied with a map of the address and they will be required to visit the address before issuing the certification.
1 day no charge
5 File company statute at the Ministry of Justice

According to Article 34 of the Commercial Registry Code, a company must register by filing the following documents with the Commercial Registry at the Ministry of Justice:
- Company statutes (notarization is not mandatory according to Article 34).
- Information on company shareholders and managers.
- Proof of deposit of initial capital.
Article 55 sets a time limit of 15 days.

To register, the applicant also needs to submit the following:
- A completed application form;
- Identification of shareholders and two photos of all managers;
- Proof of payment at the bank;
- Proof of Business adress;
- Good Conduct Certificate;
- Civil identity documents and civil registration certificates for the purpose of civil identification and civil status proof of shareholders and holders of positions in the company's bodies;
- Minutes of approval of the incorporation by the company's General Meeting and Directors' Board;
- Certificate proving the existence or non existence of fiscal debts, as well as other documents required for the purpose of State 's granting of economic benefits and incentives regarding investment operations or for the purpose of State's private immovable property lease;
- Proof of the patrimony allocated to the company;


 3 days USD 100
6 Publish statutes in the official gazette

According to Article 72 of the Commercial Registry Code, promoters must publish company statutes in the Official Gazette. According to Article 73, the publication should be done through the registrar within 30 days. In practice, this procedure is not enforced.
30 days no charge
7 Apply to tax identification number (TIN)

The business registration certificate and identification card are required. The tax identification number is used for various business taxes. The East Timor Revenue Service will issue a form for tax payment to a designated or authorized bank.
7 days no charge
8 Notify labor department

Although not legally mandated, it is common practice for companies to notify the Labor Department. The company contacts the Labor Department to verify whether the employment contracts comply with regulations. Most firms simply use the standard contract provided by the Labor Department.
2 days no charge
9 Apply for temporary business license at the Ministry of Tourism, Commerce and Industry

All companies are required to get a business license from the Commerce Division of the Ministry of Tourism, Commerce and Industry. Other licenses are granted by the relevant sectoral Ministry and signed by the Minister.

 35 days no charge
10 Make a company seal

By law, books must be legalized by the Commercial Registry. This legal requirement is defined by the Article 113 of the Commercial Registry Code. A time limit of 48 hours is applicable.
2 days no charge
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