Business in Solomon Islands

The responsible bodies are institutionally divided. MCILI and Company Haus handle business names and companies, while the Business and Cooperatives Development Division supports MSMEs and cooperatives. The Industrial Development Division assists entrepreneurship, food and manufacturing, product development and technology access. The Inland Revenue Division handles tax registration and returns. Honiara City Council issues licences in Honiara, and the relevant Provincial Council does so elsewhere. InvestSolomons and its Foreign Investment Division deal with foreign investment approval. A sole trader is an individual carrying on business personally. A partnership has two or more partners whose profit and loss arrangements should be recorded in an agreement. A company is a separate registered legal entity, and its name generally ends in Limited or Ltd. A community company generally uses Community Company Limited or CCL. A business name is only a trading name and does not create a separate legal entity. A cooperative society provides a collective business structure but does not replace tax, licensing or record-keeping duties. A business name is generally required when trading under a name other than the owner's permitted personal name. Exceptions can apply to an individual using their own given name or surname, a partnership using all partners' names, a company using its complete registered name, and a charitable trust or cooperative using its complete registered name. Company Haus provides name and company searches through its public register, including online access. A business-name application normally involves creating an account, checking the name, entering the principal and postal addresses, listing owners, submitting a declaration, paying through a Treasury counter or provincial cashier and filing the application. The certificate is then issued online or by email. The certificate should be displayed, and the registered name should appear on invoices and receipts. A business-name return is generally required every two years. The 2024 business-name fees include SBD 225 for registration, SBD 150 for a name change, SBD 150 for a return, SBD 150 for changing business details, SBD 150 for cessation, SBD 225 for restoration and SBD 100 for a certificate or extract. Some registry guides still show older amounts, including SBD 150 registration and a free return, so the current Gazette or Company Haus should be checked before payment. Company registration normally requires a Company Haus account, a name and entity details, a registered office, directors and shareholders, company rules and required consents. The application is submitted online, followed by payment at the Treasury counter in Honiara or an Inland Revenue counter in Gizo or Auki and delivery of the receipt to Company Haus. The process ends with a Certificate of Incorporation. The 2024 fees list SBD 1,500 for a local company and SBD 3,000 for an overseas company, with annual returns of SBD 300 and SBD 1,200 respectively. The same notice lists fees for name and office changes, restoration and late documents. A registry webpage still cites SBD 1,250 for local incorporation, so the payable amount should be confirmed before filing. Every business and employer generally registers with the Inland Revenue Division using TAA 1 for individuals or TAA 1A for non-individuals and receives a TIN. Tax treatment can apply to a sole trader, partnership, company or trust. Depending on the activity and employment situation, the business may need income-tax, PAYE, Sales Tax, Goods Tax, Withholding Tax or Stamp Duty compliance. Employers register and remit PAYE. E-Tax supports online filing and payment for PAYE, Goods Tax and Sales Tax. Current due-date signals include monthly Sales Tax by the 30th, provisional tax on 20 March, 20 June, 20 September and 20 December, an annual income-tax return by 31 March and balance payment by 30 September. The Inland Revenue Division page states a 30% resident-company rate and a 35% non-resident-company rate. Businesses need records, returns and payments that can be inspected or audited. A separate local business licence is required from the authority responsible for the place of operation. Honiara businesses deal with Honiara City Council; businesses elsewhere deal with the relevant Provincial Council. Typical documents include the Company Haus certificate, TIN, business address or tenancy evidence, ownership or shareholder details, a Foreign Investment Certificate where applicable, an activity description and sometimes a business plan. Licences generally last for one calendar year and require annual renewal. Fees, inspections and documents vary by province, activity and scale. Fisheries, mining, liquor, food, transport, maritime and aviation activities may require additional sector permits. Company registration, a TIN and a local licence are separate requirements. A foreign investor needs a Foreign Investment Certificate before carrying out business, negotiating contracts or taking further compliance steps that depend on approval. InvestSolomons screens reserved and restricted activities. The application can require the proposed or existing entity, investor passport or résumé or foreign-incorporation evidence, activity codes, locations, employment and investment details, a business plan, a declaration and payment. The certificate does not replace company registration, tax registration, a local licence, work or residence permissions or sector permits. The 2024 fee is SBD 2,400, with SBD 1,200 for changing details or activities, SBD 600 for review, SBD 10 per page for a register extract and SBD 300 for the annual survey due on 31 March. The stated historical processing target was five working days or less, but the current timing should be confirmed with InvestSolomons. While operating, a business keeps its Company Haus information current, displays and renews its local licence, files business-name or company annual returns and uses its TIN on Inland Revenue forms and payments. Changes to activity, location or ownership may require updates to the relevant registry, licence or investment record. Tax exemptions are not automatic; incentives are discretionary and generally require an Inland Revenue exemption process. BCD offers MSME advice, business and financial-management training, research and development support, rural and constituency outreach, cooperative registration and advice, auditing, mentoring and financial-literacy training. IDD provides entrepreneurship, food and manufacturing assistance, product development, technology sourcing, Economic Growth Centres and SME policy and finance awareness. The MSME Business Loan Guarantee Scheme is a SIG and CBSI initiative, but financing, grants and guarantees depend on the specific programme and do not create a universal entitlement. Business planning in Solomon Islands often has to account for indigenous participation, rural and provincial commerce, agriculture, fisheries, tourism, services, food and manufacturing, export and value addition. Geographic dispersion, transport and logistics, fuel and operating costs, infrastructure and access to finance can materially affect the plan. Social-media selling and e-commerce are functional informal channels, but formal registration, licensing and tax duties still depend on the activity. Company Haus and MCILI are based in Honiara; Inland Revenue offices operate in Honiara, Noro, Auki, Gizo and Panatina. Online registration does not remove the need for physical payment, verification or provincial contact in every case. When a business stops, it should notify Company Haus, address the local licence and settle or close its Inland Revenue obligations. A company may require restoration or removal procedures, while a business name can be removed after six months of a missing return and restored for the applicable fee. Foreign investors also need to report cessation or changes and complete the annual survey obligations that apply. Liquidation and sector-specific closure steps depend on the entity and activity, so there is no single national closure process for every business.