Asia-Pacific

Timor-Leste

Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Timor-Leste.

10%Corp Tax

VariesTimeline

100%Ownership

Foreign Ownership Eligibility

Timor-Leste 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: Civil Law (Portuguese and Indonesian tradition)
Primary registration authority: SERVE (Servico de Registro e Verificacao Empresarial) - serve.gov.tl
Tax authority: Autoridade Tributaria (AT) - mof.gov.tl
Corporate income tax (CIT): 10% - Source: Autoridade Tributaria, Ministry of Finance Timor-Leste (mof.gov.tl)
VAT: 0% (Timor-Leste does not levy a standard VAT; Sales Tax applies in limited sectors)
Estimated formation timeline: 7-21 days via SERVE. Source: SERVE Timor-Leste
Annual compliance and renewal obligations apply

Ownership

100% Foreign OK

Formation

100% Remote

Tax at a glance

Timor-Leste Tax Overview

10%

Corporate Income Tax (CIT)

Autoridade Tributaria (AT), Ministry of Finance Timor-Leste. mof.gov.tl

0% (no standard VAT; Sales Tax in limited sectors)

VAT / Sales Tax

Autoridade Tributaria (AT), Ministry of Finance Timor-Leste. mof.gov.tl

Autoridade Tributaria (AT)

Tax Authority

mof.gov.tl

USD (United States Dollar - official currency of Timor-Leste)

Currency

Banco Central de Timor-Leste (bctl.tl)

Pros & cons

Advantages & Considerations

Key Advantages

Low 10% flat CIT rate - one of lowest in Southeast Asia
USD official currency - eliminates FX risk for USD-denominated business
100% foreign ownership permitted in most sectors
Growing economy with oil and gas sector opportunities
ASEAN aspirant - pursuing full membership

Considerations

Small market (~1.3 million population) limits local demand
Limited banking infrastructure - only 5 licensed commercial banks
Professional services market is small - local lawyers and accountants limited
Infrastructure development still ongoing
Currency risk: USD-denominated economy may not suit non-USD business models

Incorporation Process

The process is strictly digital. Each stage builds on the previous one.

Total Timeline

Name reservationStep 1

Prepare incorporation documentsStep 2

Submit to SERVEStep 3

Tax registrationStep 4

Open corporate bank accountStep 5

Sector licences (if required)Step 6

Name reservation

Prepare incorporation documents

Submit to SERVE

Tax registration

Open corporate bank account

What you'll pay

Cost Architecture

Government Fees

SERVE company registration feeVerify current fee at serve.gov.tl

Notary / document authenticationVerify with local notary

Annual Ongoing

Annual company renewalVerify with SERVE

Autoridade Tributaria registrationVerify at mof.gov.tl

Professional Services

Incorporation agent / legal feesMarket-based - request quotes locally

Accounting and tax complianceMarket-based - request quotes locally

Government fees change frequently. Always verify current fee schedule at serve.gov.tl before committing.

Still unsure about costs?

These are estimates — your actual cost depends on your structure

Every Timor-Leste setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.

500+ businesses guided

No commitment required

Response within 24 hours

Fintech & Banking

Can non-residents open accounts without visiting? NO.

Banking options for non-resident founders in Timor-Leste. Remote account opening availability varies by institution.

Institution	Type	Ease for Non-Residents
Banco Nacional Ultramarino (BNU)	Traditional bank	Low (Visit Required)
Banco Nacional de Comercio de Timor-Leste (BNCTL)	Traditional bank	Low (Visit Required)
Mandiri Bank Timor-Leste	Traditional bank	Low (Visit Required)
ANZ Timor-Leste	Traditional bank	Low (Visit Required)
Banco Mandiri	Traditional bank	Low (Visit Required)

Regulatory requirements

Annual Compliance Matrix

Requirement	Deadline	Details
Annual company filing	Ongoing	File annual returns with SERVE (serve.gov.tl) to maintain good standing.
Corporate income tax return	Ongoing	Submit annual CIT return to Autoridade Tributaria (AT). Rate: 10%.
Withholding tax	Ongoing	Timor-Leste levies withholding taxes on dividends, interest, and royalties. Verify current rates with AT (mof.gov.tl).
Accounting records	Ongoing	Maintain statutory books per Civil Law requirements.
Beneficial ownership disclosure	Ongoing	Verify current UBO requirements with SERVE (serve.gov.tl).

Frequently Asked

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