Doing Business in Nauru

Nauru offers a business-friendly environment with zero corporate tax, no VAT, no payroll taxes, and minimal regulatory burden. This guide covers the practical steps and considerations for establishing and operating a business in Nauru.

Zero-Tax Business Environment

Businesses operating in Nauru benefit from:

• 0% Corporate Income Tax: No tax on profits
• 0% VAT/GST: No consumption tax on sales
• 0% Payroll Tax: No employer social contributions
• 0% Withholding Tax: No tax on dividends, interest, or royalties
• 0% Capital Gains Tax: No tax on asset sales

Business Registration

The process of registering a business in Nauru involves:

• Name Reservation: Check and reserve company name
• Incorporation: File articles of incorporation with the Registrar of Companies
• Business License: Apply for an annual business license
• Tax Registration: Register for tax identification (administrative)

Business License

All businesses in Nauru must obtain an annual business license. The fee varies depending on the business type and size. Licenses are renewable annually.

Ongoing Compliance

Despite the zero-tax environment, businesses have certain compliance obligations:

• Annual Return: File with the Registry of Companies
• Business License Renewal: Annual renewal required
• Financial Records: Maintain proper accounting records
• AML Compliance: Anti-money laundering obligations for certain businesses

Workforce

Nauru has a small labor force. Key considerations include:

• Limited local skilled labor availability
• Work permits required for foreign employees
• No minimum wage regulations in some sectors
• Employment contracts should comply with Nauruan labor law

Banking and Finance

• Limited local banking infrastructure
• AUD is the official currency
• International banking connections may be needed for larger operations
• Foreign currency accounts typically available