Palau
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Palau.
Foreign Ownership Eligibility
Palau 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: Palau Office of the Attorney General
- Registry website: https://palaugov.pw
- Tax authority: Palau Division of Revenue and Taxation
- Corporate income tax (CIT): 12% - Source: CIT: 12% (Palau). No GST.
- VAT / sales tax: 0%
- Estimated formation timeline: 14-21 days - Via OAG Palau. Source: Palau Government
- Annual compliance and renewal obligations apply
Ownership
100% Foreign OK
Formation
100% Remote
Tax at a glance
Palau Tax Overview
12%
Corporate Income Tax (CIT)
CIT: 12% (Palau). No GST.
0%
VAT / Sales Tax
CIT: 12% (Palau). No GST.
Palau Division of Revenue and Taxation
Tax Authority
https://palaugov.pw
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted in most sectors
Legal framework: Mixed (US Common Law)
Primary registry: Palau Office of the Attorney General
Tax rate: 12% CIT
Incorporated company has access to Palau 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://palaugov.pw before committing.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Palau 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 Palau. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Bank of Hawaii Palau | Traditional bank | Low (Visit Required) | |
| First Hawaiian Bank Palau | Traditional bank | Low (Visit Required) | |
| NDBP Palau | Traditional bank | Low (Visit Required) |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual company filing | Ongoing | File annual returns with Palau Office of the Attorney General to maintain good standing. |
Corporate income tax return | Ongoing | Submit annual CIT return to Palau Division of Revenue and Taxation. Rate: 12%. |
VAT filing | Ongoing | VAT-registered businesses file periodically. Rate: 0%. Verify threshold with Palau Division of Revenue and Taxation. |
Accounting records | Ongoing | Maintain statutory books per Mixed (US Common Law) requirements. |
Beneficial ownership disclosure | Ongoing | Verify current UBO requirements in Palau. |
Frequently Asked
Speak with a Palau specialist
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