Doing Business in Tonga
Regrettably, setting up a new business in Tonga is not a simple matter. Every business – whether operated by a sole trader, partnership or company – must have a business licence. Certain areas of business, such as the sale of food and fishing, are reserved for Tongan nationals. Any foreigner setting up such a business must have a Tongan partner holding a majority share of the business. The precise rules regarding the share the Tongan partner must have in other industries are constantly changing. Before attempting to set up a business, it is essential to consult with a lawyer licenced to practise in Tonga.
As noted elsewhere, Tongan Company Law is virtually identical to New Zealand company law. The Ministry responsible for administering company registration (and the registration of trademarks) is one of the more efficient of the Tongan government departments. As noted above however, the incorporation of a company is only one of the steps involved in commencing business in Tonga – the business licence is the crucial step which may prove problematic.
While there is no specific legal requirement to have a Tongan partner (other than in certain industries like food and fishing) the wheels of bureaucracy usually move much faster if the foreigner intending to set up in business has a suitable Tongan partner. We can advise on this rather delicate aspect.
Finally, the business and its owners must obtain a Tongan tax number, similar to IRD numbers in New Zealand. Another important issue is obtaining a business visa – again, while there is no specific requirement to have a Tongan partner, business visas will often be much easier to obtain if one has a suitable Tongan business partner. Persons operating a business without both a business visa and a business licence are liable to lose their assets – as well as finding themselves before the courts.
Please note that the above is only the “bare bones”; before investing in any business venture, we strongly advise you to take competent professional advice.
Please e-mail all enquiries to Mr David Garrett SC at: d.garrett@xtra.co.nz
Regrettably, setting up a new business in Tonga is not a simple matter. Every business – whether operated by a sole trader, partnership or company – must have a business licence. Certain areas of business, such as the sale of food and fishing, are reserved for Tongan nationals. Any foreigner setting up such a business must have a Tongan partner holding a majority share of the business. The precise rules regarding the share the Tongan partner must have in other industries are constantly changing. Before attempting to set up a business, it is essential to consult with a lawyer licenced to practise in Tonga.
As noted elsewhere, Tongan Company Law is virtually identical to New Zealand company law. The Ministry responsible for administering company registration (and the registration of trademarks) is one of the more efficient of the Tongan government departments. As noted above however, the incorporation of a company is only one of the steps involved in commencing business in Tonga – the business licence is the crucial step which may prove problematic.
While there is no specific legal requirement to have a Tongan partner (other than in certain industries like food and fishing) the wheels of bureaucracy usually move much faster if the foreigner intending to set up in business has a suitable Tongan partner. We can advise on this rather delicate aspect.
Finally, the business and its owners must obtain a Tongan tax number, similar to IRD numbers in New Zealand. Another important issue is obtaining a business visa – again, while there is no specific requirement to have a Tongan partner, business visas will often be much easier to obtain if one has a suitable Tongan business partner. Persons operating a business without both a business visa and a business licence are liable to lose their assets – as well as finding themselves before the courts.
Please note that the above is only the “bare bones”; before investing in any business venture, we strongly advise you to take competent professional advice.
Please e-mail all enquiries to Mr David Garrett SC at: d.garrett@xtra.co.nz