Business Structures in Nauru

Nauru offers several business entity types for local and foreign investors. This guide covers the available structures, their characteristics, and considerations for choosing the right entity type.

Available Business Structures

Limited Liability Company (LLC)

The LLC is the most common business structure for small to medium-sized enterprises in Nauru.

• Minimum Share Capital: No minimum requirement
• Shareholders: Minimum 1, no maximum
• Directors: Minimum 1
• Liability: Limited to share capital
• Tax: 0% CIT

Corporation

Suitable for larger enterprises and foreign investors.

• Minimum Share Capital: Varies by type
• Shareholders: Minimum 1
• Directors: Minimum 1
• Audit Requirements: May apply for larger entities
• Tax: 0% CIT

Branch of a Foreign Company

Foreign companies may establish a branch in Nauru.

• Registration: Foreign company registration certificate required
• Local Representative: Must appoint a local representative
• Liability: Branch is not a separate legal entity
• Tax: 0% on Nauru-source income

Sole Proprietorship

The simplest business structure for individual entrepreneurs.

• Registration: Simple registration with business license office
• Liability: Unlimited personal liability
• Tax: 0% on business income

International Business Company (IBC)

Nauru also offers IBC structures for offshore operations, benefiting from the 0% tax regime.

Registration Procedure

1. Name Reservation: Reserve company name with the Registry of Companies
2. Incorporation: File articles of incorporation and required documents
3. Business License: Apply for an annual business license
4. Registration: Complete registration with relevant authorities

Considerations for Foreign Investors

• Foreign ownership restrictions may apply in certain sectors
• Customary land ownership may affect business operations
• Work permits required for foreign employees
• Professional legal advice recommended for entity selection