How to Register a Business in the US from Papua New Guinea
Discover the essential steps and key considerations for Papua New Guinea entrepreneurs looking to establish and operate a successful business in the United States.
Ready to start your business? Plans starting at $297 + state fees.
Step 1: Benefits of starting your US business from Papua New Guinea
Starting a US business from Papua New Guinea offers an array of benefits that can strategically position entrepreneurs for global success. One significant advantage is the time zone difference, which enables around-the-clock operations. While the US sleeps, work can continue seamlessly in Papua New Guinea, ensuring that productivity is maximized and deadlines are consistently met. This 24-hour operational cycle can lead to increased efficiency and faster project turnarounds, providing a competitive edge in today's fast-paced business environment.
Another compelling benefit is the potential cost savings. Papua New Guinea boasts a lower cost of living compared to many parts of the US, which can translate to reduced overhead costs for businesses. Lower expenses for office space, utilities, and wages can significantly stretch a business’s budget, allowing for the allocation of funds towards growth, innovation, and market expansion. Additionally, starting a business remotely from Papua New Guinea leverages the rich cultural diversity and unique perspectives of the region, fostering creativity and offering unique value propositions to the US market.
Pros
- Papua New Guinea offers a low corporate tax rate, providing cost savings for businesses. The country's strategic location in the Asia-Pacific region can open up opportunities for international trade. The growing economy presents potential for expansion and investment in various industries.
Cons
- High crime rates make it risky for foreign businesses
- Lack of infrastructure may hinder operations
- Limited access to skilled labor force
Step 2: How to start your US business from Papua New Guinea
Starting a US business from Papua New Guinea involves several steps, many of which can be completed online. First, it's important to choose the right business structure, such as a Limited Liability Company (LLC), Corporation, or Sole Proprietorship. Each structure has distinct legal and tax implications, so it's advisable to consult with a legal or business advisor. Once the business structure is selected, you need to register your business name with the appropriate US state authority.
Next, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which serves as a federal tax ID for your business. This process can be done online through the IRS website. Additionally, depending on the nature of your business, you may need to apply for specific licenses and permits. It's also essential to open a US bank account to manage your business finances effectively. Many international business owners use services that offer US-based banking solutions for non-residents. Lastly, establishing a physical address or using a registered agent service in the US can help streamline your operations and ensure you meet all legal requirements.
Choose and reserve a name
It's wise to check your LLC name against similar businesses in your area. We include a name check with our formation services and can reserve names for you.
Pick a Registered Agent (RA)
An RA physically receives your LLC's legal notices during normal business hours. Most states require this, including Papua New Guinea—but the good news is, we can do it for you.
File a Certificate of Formation
This document contains basic details about your LLC, including its name and address. When we file this for you, it's typically sent to the Papua New Guinea Secretary of State.
Preparing an Operating Agreement
This outlines your LLC's rules for everything from decision-making to distributing profits. Though it isn't required in your state, our templates make it easy to prepare one and define your rights.
Get an Employer ID Number (EIN)
An EIN is like a Social Security number for your LLC, and is needed for banking, taxes, and hiring. Papua New Guinea LLCs may also have additional post-formation tax and regulatory requirements.
Determine licenses needed
You'll also need to apply for any specific permits or licenses that may be required for compliance, although it's wise to wait until your LLC's formation documents are approved.
Step 3: Opening a Business Bank Account
A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?
Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.
But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.
Furthermore, a business bank account can boost your credibility and project professionalism.
It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.
Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.
doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.
Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.
You may also want to consider working with a bank that specializes in small business banking.
Step 4: Understanding Your Compliance Requirements in Papua New Guinea
Understanding Compliance Requirements for Operating a US Business in Papua New Guinea
Expanding your business to Papua New Guinea (PNG) can be a rewarding endeavor. However, understanding and adhering to local compliance requirements is crucial. Below are key considerations for operating a US-based business in Papua New Guinea.
1. Legal Structure
Before establishing your business, you must choose an appropriate legal structure. Common structures include:
- Private Limited Company
- Partnership
- Branch of a Foreign Company
Consult with local experts to select the best structure for your business operations.
2. Registration and Licensing
Registering your business involves multiple steps:
- Company Registration: Register with the Investment Promotion Authority (IPA)
- Tax Identification: Obtain a Taxpayer Identification Number (TIN) from the Internal Revenue Commission (IRC)
- Business License: Secure the necessary licenses from relevant provincial and local authorities
3. Taxation
Understanding the taxation landscape is essential:
- Corporate tax rate: Generally, around 30% for most companies
- Goods and Services Tax (GST): Typically, 10%
- Payroll tax: Varies depending on employee salaries and the number of employees
Engage a local tax advisor to navigate the complexities and ensure compliance.
4. Labor Laws and Employment Regulations
Adhering to labor laws is key to smooth operations:
- Employment Contracts: Must comply with PNG’s Employment Act
- Minimum Wage: Set by the government and subject to periodic changes
- Work Permits: Required for employing foreign nationals
5. Environmental and Sector-Specific Regulations
Businesses in certain sectors must adhere to additional regulations:
- Environmental permits: Required for businesses impacting natural resources
- Industry-specific licenses: Necessary for sectors like mining, fisheries, and telecommunications
Ensure you meet all sector-specific compliance requirements to avoid penalties and operational disruptions.
6. Anti-Corruption and Ethical Standards
Papua New Guinea has strict anti-corruption laws:
- Adopt robust internal policies to combat bribery and corruption
- Conduct regular compliance training for employees
Upholding ethical standards is crucial for maintaining a positive business reputation.
In summary, navigating the compliance landscape in Papua New Guinea requires careful planning and local expertise. Engage with local professionals and stay updated on regulatory changes to ensure your business operates smoothly and legally.
doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.
Step 5: Understanding Your Tax Obligations in Papua New Guinea
Understanding Tax Obligations for US Businesses in Papua New Guinea
Operating a US business in Papua New Guinea presents unique tax obligations. This guide provides an overview of key considerations for understanding and meeting these responsibilities.
Business Registration and Tax Identification
Before commencing operations, foreign businesses need to register with the Papua New Guinea Investment Promotion Authority (IPA). Following registration, obtain a Tax Identification Number (TIN) from the Internal Revenue Commission (IRC), which is essential for all tax-related activities.
Corporate Income Tax
- Tax Rate: The standard corporate tax rate for companies in Papua New Guinea is 30% on net taxable income.
- Reporting: Companies must file annual tax returns within three months after the fiscal year-end, along with provisional quarterly returns.
Goods and Services Tax (GST)
- Standard Rate: The general GST rate in Papua New Guinea is 10%.
- Registration Threshold: Businesses with an annual turnover exceeding PGK 250,000 must register for GST.
- Filing: GST returns must be filed monthly.
Employment Taxes
US businesses must comply with PNG employment tax regulations when hiring local employees.
- Salary and Wage Tax (SWT): Employers must withhold SWT from employees' wages and remit it to the IRC. Rates are progressive based on income levels.
- Superannuation Contributions: Employers are required to contribute to an approved superannuation fund for their employees.
Withholding Taxes
Certain payments to non-residents or third parties are subject to withholding taxes, which businesses must deduct at source and remit to the IRC. This includes:
- Dividends: 17% withholding tax on dividends paid to non-residents.
- Interest: 15% withholding tax on interest payments.
- Royalties: 10% withholding tax on royalty payments.
Double Taxation Agreements (DTAs)
Papua New Guinea has DTAs with several countries to prevent double taxation. These agreements may offer reduced tax rates or exemptions. It is crucial for US businesses to review the specifics of any applicable treaty between the US and Papua New Guinea.
Professional Advice
Given the complexities of tax obligations, it is advisable for US businesses operating in Papua New Guinea to engage local tax consultants or legal experts. They can provide tailored advice, ensure compliance, and assist in navigating the PNG tax system effectively.
By understanding these key areas, US businesses can better manage their tax obligations and operate smoothly within Papua New Guinea's regulatory framework.
It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.
doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.
Step 6: How doola Can Assist
doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.
Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed.
doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.
doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.
The doola Application
It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.
Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.
Forming the Company
doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent.
You can also opt for our Total Compliance plan.
Getting Your IRS Tax ID (EIN)
After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing.
For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.
Filing Your 83(b) Tax Election
Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.
We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.
Partner Perks and Discounts
doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.
doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.
Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.
Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.
Turn your entrepreneurship dream into reality today!
We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country
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Starter
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Formation & EIN filings, RA service, Operating Agreement, and regular compliance reminders.
State fee not included.
$297 /yr
Total Compliance
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Formation with Expedited processing, Annual State filings, IRS Tax filings, a dedicated Account Manager and a free CPA consultation.
State fee not included.
Each state charges a one-time formation fee. Your state fee will vary depending on the state you form in. Not sure which state to choose? Take our quiz →
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See what people say about doola on
Y Combinator
YC S20's @doolaHQ is the one-stop-shop for US and non-US residents to launch a US LLC, DAO LLC, and C Corp — and today they're sharing their company formation API with the world, to enable businesses big and small to create a company from the command line.
Ankur Nagpal
You can programmatically create a company or DAO using their API Programmatically create a business, get an EIN, get a US bank account, process payments, file taxes & more Perfect for any “business in a box” startup
Jose Rosado
Thanks to the @StartPackHQ for helping me with this process. Check them out 👇 https://rosa.do/startpack
Mary Ann Azevedo
.@doolaHQ, which describes itself as a "Business in a box" for SMBs, has raised $3M in a seed round of funding. doola provides company formation, an EIN, a U.S. address and bank account, access to U.S. payments and a tax consultation, among other things.
Ankur Nagpal
The good news: You don't have to be a US resident to start a company in America If you want to start a tech startup, incorporate a C-Corp If you want to freelance or consult with your own business, incorporate a LLC This should be straightforward - use @doolaHQ & you're good
Alex Lieberman
I haven't started a business in 8 years. I had to rediscover the mission critical tools for starting & running a new venture. Here's the stack:LLC registration: @doolaHQ, Trademark filing: @JoshGerben, Domain registration: @GoDaddy, Website: @Shopify, Banking: @mercury, Payments: @stripe, Files: @googledrive, Internal email: @gmail, Extern email: @Mailchimp, Go-to Market: @Kickstarter, Task Management: @asana
Syndicate
8/ We've also teamed with @doolaHQ to enable DAOs on Syndicate to get legal entities and EINs, open fiat bank accounts, submit compliance filings, and issue K-1 tax forms easily and affordably. This is just the beginning of new capabilities we’ll be bringing to DAOs, together.
Elizabeth Yin
Congrats to @HustleFundVC portfolio company Doola (formerly StartPack) on their new round! Thank you for letting us invest
Will Papper
We use @doolahq at @SyndicateDAO
Y Combinator
YC S20's @doolaHQ is the one-stop-shop for US and non-US residents to launch a US LLC, DAO LLC, and C Corp — and today they're sharing their company formation API with the world, to enable businesses big and small to create a company from the command line.
Ankur Nagpal
You can programmatically create a company or DAO using their API Programmatically create a business, get an EIN, get a US bank account, process payments, file taxes & more Perfect for any “business in a box” startup
Jose Rosado
Thanks to the @StartPackHQ for helping me with this process. Check them out 👇https://rosa.do/startpack
Mary Ann Azevedo
.@doolaHQ, which describes itself as a "Business in a box" for SMBs, has raised $3M in a seed round of funding. doola provides company formation, an EIN, a U.S. address and bank account, access to U.S. payments and a tax consultation, among other things.
Ankur Nagpal
The good news: You don't have to be a US resident to start a company in America. If you want to start a tech startup, incorporate a C-Corp If you want to freelance or consult with your own business, incorporate a LLC This should be straightforward - use @doolaHQ & you're good
Alex Lieberman
I haven't started a business in 8 years. I had to rediscover the mission critical tools for starting & running a new venture. Here's the stack:LLC registration: @doolaHQ, Trademark filing: @JoshGerben, Domain registration: @GoDaddy, Website: @Shopify, Banking: @mercury, Payments: @stripe, Files: @googledrive, Internal email: @gmail, Extern email: @Mailchimp, Go-to Market: @Kickstarter, Task Management: @asana
Syndicate
8/ We've also teamed with @doolaHQ to enable DAOs on Syndicate to get legal entities and EINs, open fiat bank accounts, submit compliance filings, and issue K-1 tax forms easily and affordably. This is just the beginning of new capabilities we’ll be bringing to DAOs, together.
Elizabeth Yin
Congrats to @HustleFundVC portfolio company Doola (formerly StartPack) on their new round! Thank you for letting us invest
Will Papper
We use @doolahq at @SyndicateDAO
Hustle Fund
Congrats team @doolaHQ! Ya'll ship so well and are continue to make company formation a snap. Appreciate being on this journey with you!
dharmesh
Love the work that @DoolaHQ is doing. Aligns with my philosophy of addressing the "talent is evenly distributed, opportunity is not" issue. More startups everywhere = good for everyone.
Aditya Mohanty
Was blown away seeing how easy @doolaHQ makes it to start an entity in the US, completely online. If you're planning to build from India for the world, definitely watch out for this team 🔥
Y Combinator
YC S20’s @doolaHQ is the one-stop-shop for U.S. and non-U.S. residents to launch a U.S. LLC and C Corp — and today they're launching full support for DAO LLCs, bridging web3 and web2:
Sahil Bloom
💥Investment Announcement💥 Excited to invest in @doolaHQ! A business-in-a-box platform enabling founders from anywhere in the world to start their dream US business. Proud to be an investing alongside @NexusVP @ycombinator @dharmesh @ankurnagpal @anothercohen, and more!
Alex Lieberman
I love businesses that go long growth of entrepreneurship. @tryramp for startup spending, @doola for business formation, @carta for equity management and @Rippling for HR & IT
Eric Bahn
I recommend bookmarking this if you start to get serious about angel investing. LLC structures have some great benefits, thank you @arjunmahadevan for the awesome explainer here!
Rohun
you should be able to "start a business" without having to worry about LLCs, bank accounts, taxes, and bookkeeping. my friend, @arjunmahadevan is building this with @doolaHQ here's why it's a great biz and you should use them for the next LLC you form.
Hustle Fund
Congrats team @doolaHQ! Ya'll ship so well and are continue to make company formation a snap. Appreciate being on this journey with you!
dharmesh
Love the work that @DoolaHQ is doing. Aligns with my philosophy of addressing the "talent is evenly distributed, opportunity is not" issue. More startups everywhere = good for everyone.
Aditya Mohanty
Was blown away seeing how easy @doolaHQ makes it to start an entity in the US, completely online. If you're planning to build from India for the world, definitely watch out for this team 🔥
Y Combinator
YC S20’s @doolaHQ is the one-stop-shop for U.S. and non-U.S. residents to launch a U.S. LLC and C Corp — and today they're launching full support for DAO LLCs, bridging web3 and web2:
Sahil Bloom
💥Investment Announcement💥 Excited to invest in @doolaHQ! A business-in-a-box platform enabling founders from anywhere in the world to start their dream US business. Proud to be an investing alongside @NexusVP @ycombinator @dharmesh @ankurnagpal @anothercohen, and more!
Alex Lieberman
I love businesses that go long growth of entrepreneurship. @tryramp for startup spending, @doola for business formation, @carta for equity management and @Rippling for HR & IT
Eric Bahn
I recommend bookmarking this if you start to get serious about angel investing. LLC structures have some great benefits, thank you @arjunmahadevan for the awesome explainer here!
Rohun
you should be able to "start a business" without having to worry about LLCs, bank accounts, taxes, and bookkeeping. my friend, @arjunmahadevan is building this with @doolaHQ here's why it's a great biz and you should use them for the next LLC you form.
Y Combinator
YC S20's @doolaHQ is the one-stop-shop for US and non-US residents to launch a US LLC, DAO LLC, and C Corp — and today they're sharing their company formation API with the world, to enable businesses big and small to create a company from the command line.
Hustle Fund
Congrats team @doolaHQ! Ya'll ship so well and are continue to make company formation a snap. Appreciate being on this journey with you!
Ankur Nagpal
You can programmatically create a company or DAO using their API Programmatically create a business, get an EIN, get a US bank account, process payments, file taxes & more Perfect for any “business in a box” startup
dharmesh
Love the work that @DoolaHQ is doing. Aligns with my philosophy of addressing the "talent is evenly distributed, opportunity is not" issue. More startups everywhere = good for everyone.
Jose Rosado
Thanks to the @StartPackHQ for helping me with this process.Check them out 👇 https://rosa.do/startpack
Aditya Mohanty
Was blown away seeing how easy @doolaHQ makes it to start an entity in the US, completely online. If you're planning to build from India for the world, definitely watch out for this team 🔥
Mary Ann Azevedo
.@doolaHQ, which describes itself as a "Business in a box" for SMBs, has raised $3M in a seed round of funding. doola provides company formation, an EIN, a U.S. address and bank account, access to U.S. payments and a tax consultation, among other things.
Y Combinator
YC S20’s @doolaHQ is the one-stop-shop for U.S. and non-U.S. residents to launch a U.S. LLC and C Corp — and today they're launching full support for DAO LLCs, bridging web3 and web2:
Ankur Nagpal
The good news: You don't have to be a US resident to start a company in America If you want to start a tech startup, incorporate a C-Corp If you want to freelance or consult with your own business, incorporate a LLC This should be straightforward - use @doolaHQ & you're good
Sahil Bloom
💥Investment Announcement💥 Excited to invest in @doolaHQ! A business-in-a-box platform enabling founders from anywhere in the world to start their dream US business. Proud to be an investing alongside @NexusVP @ycombinator @dharmesh @ankurnagpal @anothercohen, and more!
Alex Lieberman
I haven't started a business in 8 years. I had to rediscover the mission critical tools for starting & running a new venture. Here's the stack:LLC registration: @doolaHQ, Trademark filing: @JoshGerben, Domain registration: @GoDaddy, Website: @Shopify, Banking: @mercury, Payments: @stripe, Files: @googledrive, Internal email: @gmail, Extern email: @Mailchimp, Go-to Market: @Kickstarter, Task Management: @asana
Alex Lieberman
I love businesses that go long growth of entrepreneurship. @tryramp for startup spending, @doola for business formation, @carta for equity management and @Rippling for HR & IT
Syndicate
8/ We've also teamed with @doolaHQ to enable DAOs on Syndicate to get legal entities and EINs, open fiat bank accounts, submit compliance filings, and issue K-1 tax forms easily and affordably.This is just the beginning of new capabilities we’ll be bringing to DAOs, together.
Eric Bahn
I recommend bookmarking this if you start to get serious about angel investing. LLC structures have some great benefits, thank you @arjunmahadevan for the awesome explainer here!
Elizabeth Yin
Congrats to @HustleFundVC portfolio company Doola (formerly StartPack) on their new round! Thank you for letting us invest
Rohun
you should be able to "start a business" without having to worry about LLCs, bank accounts, taxes, and bookkeeping. my friend, @arjunmahadevan is building this with @doolaHQ here's why it's a great biz and you should use them for the next LLC you form.
Will Papper
We use @doolahq at @SyndicateDAO
Why should I get an LLC and a business bank account?
Forming an LLC and opening a business bank account are essential steps to protect your personal assets and streamline your finances. An LLC limits your personal liability in case of legal or financial issues, while a business bank account helps you separate personal and business finances, making tax preparation easier and ensuring a more professional image for your business.
Do I need to be a US citizen to work with doola?
No, you don’t! We work with entrepreneurs from around the world to get their businesses incorporated. Don’t take our word for it, though; check out our TrustPilot Page to hear what people globally have to say about doola.
What is an LLC (Limited Liability Company)?
A limited liability company is a formal business structure (created as per state law) where the business is legally distinct from the owner(s). It may have a single owner in the case of a Single-Member LLC or multiple owners in the case of a Multi-Member LLC.
An LLC combines the perks of a corporation (protection against personal liability) and a partnership (pass-through taxation). Since the business has a separate legal existence, the members are not personally liable for the debts and obligations of the Company.
State laws stipulate how LLCs should be incorporated. Some states require specific documents, such as the articles of organization, membership agreement, etc., to be filed with the authorities.
Learn more about LLCs and how they work in FREE ebook.
What information do you need from me to get started?
We don't need any documents to get started. We just need a few pieces of info from you:
- Your Company Name
- Your Personal Address
- Phone Number and Email (For contact purposes)
Later in the process, you'll need a passport to set up your bank account.
What is an EIN?
An Employer Identification Number is the tax identification number for your organization and a requirement of many banks or institutions (such as the IRS) to carry out business in the US. Once your EIN is acquired, you can apply for business bank accounts and payment gateways. Learn more about the full process.
What is an ITIN?
An Individual Tax Identification Number (ITIN) can be used as an alternative for a Social Security Number (SSN) in some cases and is not a requirement in most cases. However, you will be required to have one if you wish to apply for a PayPal account or certain bank accounts. We walk you through how this process looks like in our guide!
Still have a question?
Schedule a free consultation with an expert from doola, today.
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