Business entities in Kiribati in 2023
Healy Consultants Group will assist our Clients to incorporate the optimal corporate structure in Kiribati. There are four corporate vehicles through which business can be conducted in Kiribati. Most foreign entrepreneurs prefer the private limited liability company (LLC). Other corporate vehicles in Kiribati are i) the sole trader ii) partnership or iii) co-operative.
The Kiribati private limited liability company (LLC)
- The partners of a Kiribati LLC cannot be held personally liable for either the debts or liabilities incurred by the business. The shareholders of a Kiribati LLC cannot transfer their shares.
- The Kiribati LLC is commonly used by entrepreneurs to establish a local small or medium-sized business (SME) in Kiribati, or to bid for government contracts.
- The minimum paid-in capital for a Kiribati LLC is US$357.
- A Kiribati LLC must have at least one shareholder and at least two directors. The shareholders can be individuals or companies. At least two directors must be a resident in Kiribati.
- A Kiribati LLC must i) prepare annual financial statements and ii) submit an annual tax return. However, this entity does not require an annual audit.
- A Kiribati LLC must appoint a company secretary.
The Kiribati sole trader
- A Kiribati sole trader is essentially an individual who trades and is legally responsible for every aspect of the business. The individual is also personally liable for the business’ debts and liabilities.
- The Kiribati sole trader is ideal for entrepreneurs who want an entity which is simple to run.
- The Kiribati sole trader entity is very easy to set up, with minimal statutory requirements. For example, the sole trader can be any nationality.
- Like any other Kiribati entity, a sole trader can open a corporate bank account.
- The Kiribati sole trader must file an annual tax return. However, an annual audit is not necessary.
The Kiribati partnership
- With the Kiribati partnership, two or more individuals share the business equally. In other words, they share profits and losses, and both assume unlimited liability for the partnership’s debts.
- The Kiribati partnership is ideal for a business that requires shared expertise, for example specialist businesses such as medical clinics etc.
- The Kiribati partnership is simple to incorporate, with minimal statutory requirements. Two shareholders are required, and they can be of any nationality.
- A Kiribati partnership can open a corporate bank account.
- A Kiribati partnership must file an annual tax return. It is, however, not required to undergo an annual audit.
The Kiribati Co-operative
- A Kiribati co-operative is owned and operated by the community. In other words, people who use the company’s products or services.