Micronesia
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Micronesia.
Foreign Ownership Eligibility
Micronesia welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors
- Legal system: Mixed (US Common Law)
- Primary registration authority: FSM Division of Corporations
- Registry website: https://www.fsmgov.org
- Tax authority: FSM Department of Finance and Administration
- Corporate income tax (CIT): 21% - Source: CIT: 21% (Micronesia). No national GST.
- VAT / sales tax: 0%
- Estimated formation timeline: 14-30 days - Via FSM Corporations. Source: FSM Government
- Annual compliance and renewal obligations apply
Ownership
100% Foreign OK
Formation
100% Remote
Tax at a glance
Micronesia Tax Overview
21%
Corporate Income Tax (CIT)
CIT: 21% (Micronesia). No national GST.
0%
VAT / Sales Tax
CIT: 21% (Micronesia). No national GST.
FSM Department of Finance and Administration
Tax Authority
https://www.fsmgov.org
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted in most sectors
Legal framework: Mixed (US Common Law)
Primary registry: FSM Division of Corporations
Tax rate: 21% CIT
Incorporated company has access to Micronesia market
Considerations
Local professional guidance recommended for regulatory compliance
Banking KYC requirements can be extensive - allow time for account opening
Professional services market may be limited compared to major financial centres
Verify sector-specific restrictions before investing
Currency risk: USD fluctuations may affect USD-denominated investments
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Name reservation
Prepare incorporation documents
Submit registration application
Tax registration
Open corporate bank account
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government fees change frequently. Always verify current fee schedule at https://www.fsmgov.org before committing.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Micronesia setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Micronesia. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Bank of the Federated States of Micronesia | Traditional bank | Low (Visit Required) | |
| First Hawaiian Bank FSM | Traditional bank | Low (Visit Required) |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual company filing | Ongoing | File annual returns with FSM Division of Corporations to maintain good standing. |
Corporate income tax return | Ongoing | Submit annual CIT return to FSM Department of Finance and Administration. Rate: 21%. |
VAT filing | Ongoing | VAT-registered businesses file periodically. Rate: 0%. Verify threshold with FSM Department of Finance and Administration. |
Accounting records | Ongoing | Maintain statutory books per Mixed (US Common Law) requirements. |
Beneficial ownership disclosure | Ongoing | Verify current UBO requirements in Micronesia. |
Frequently Asked
Speak with a Micronesia specialist
Get personalised guidance on entity types, costs, timelines and banking — free, no commitment needed.