Download 1ST AUSTRALIA SOLOMON BUSINESS FORUM NOVOTEL …

“WHAT YOU NEED TO KNOW ABOUT
DOING BUSINESS IN SOLOMON
ISLANDS .”
FOREIGN INVESTMENT DIVISION
MINISTRY OF COMMERCE, INDUSTRY, LABOUR & IMMIGRATION.
DERICK AIHARI
DIRECTOR
1. Brief Micro-economic background of SI
2. About Foreign Investment Division/MCILI
3. Foreign Investment Registration Process –steps to
follow
4. Other legal requirements
5. Investment opportunities
6. Contact
1. Macroeconomic Background
 Modest real GDP growth over the past 2 decades
 Significant population growth – 2.9% per annum
 Large proportion of population under 25
 Lowest GDP per capita in the Pacific – $1,100 in 2011
 Relatively high inflation between 2008-2013 of an
average of 7.75% per annum – impact on food prices
 Human development is much more than increasing
GDP
GDP growth, selected Pacific Island States, 2008-2014
 How will the economy perform in the future?
 Significant decline in logging forecast over the next few
years
 Agricultural production, especially major commodities
of cocoa and copra, fairly stable
 Gold production suspended
 ABD’s prediction of moderate growth (of 4% pa) is now
overly optimistic
 Firm monetary and fiscal policy over the past few years
 How will changes in exports affect the fiscal position of
the country?
 Less log export taxes (60% of exports; 14% of
government revenue)
 Applied tariff rates are generally low (most below 10%),
but tariffs are a significant course of government
revenue (8%)
Solomon Islands exports by selected destination as % of total
exports, 1980-2012
Solomon Islands imports by selected source country as % of total
imports, 1980-2012
Trade Composition
 Major goods exports: timber (67%), gold (14%), fish
(8%), palm oil (4%), copra (1%), coconut products (1%)
and cocoa (1%)
 Major goods destinations: China (48%); Australia (17%
- gold); EU (9%)
 Major goods imports: fuel (28%); machinery (22%)
and food (19%)
Foreign Direct Investment
 Foreign direct investment stock Q3 2013 – 7,297 – little
outward direct investment
 Source of investments 2006-2013: Australia 438;
Malaysia 412; China 262; NZ 76; PNG 57; Taiwan 43
 Sectors 2006-213: O/services 213; forestry 189;
wholesale 174; mining 101; tourism 84; fisheries 79;
transport/comm 67; construction 61; consultancy 44;
agriculture 39; manufacturing 34; electrical 16
Taiwanese Registration in Solomon Islands
Year
2006
2007
2008
2009
2010
2011
2012
2013
Total
Total No. of Investors
12
5
5
2
8
3
3
5
43
• Investment Value 300million,
• 4,000 employment
•Review indicates 75% of registration is subject for de-registration –
None performance.
No. of Registration per year by Sector
Sector
Agriculture
Mining
Forestry
Fishery
Tourism
manufacturing
Construction
W/Retail
Other Services
2006 2007 2008 2009 2010 2011 2012 2013
1
2
1
6
2
2
1
3
2
3
1
1
2
2
1
1
4
1
Transport/Comm
Consultancy
Electrical
1
1
1
1
1
5
5
2
8
3
1
4
3
1
1
3
1
43
1
12
Total
3
1
8
9
5
2. About Foreign Investment Division/MCILI
MCILI
Admin/Accounts
Immigration
Labour
Business/Coop
Internal Marketing
& Promotion
Consumers & Price
Control
Industrial
Develop
Trade Dispute
Foreign Investment
Company
Registry
• Intermediary government organization;
•Our core functions include:
(i) Promote foreign investment;
(ii) Facilitate foreign investment through registration;
(iii) Monitor foreign investment;
(iv) Influence foreign policies and legislative reforms.
• Intermediary government organization;
Our core functions include:
(i) Promote foreign investment;
(ii) Facilitate foreign investment registration;
(iii) Monitor foreign investment;
(iv) Influence foreign Investment policies and legislative
reforms.
3. Foreign Investment Process.
F I Validation & Amendment Act 2009, FIR 2006.
• Individual
• Corporate
•Check application
•Register/ opens
temporary file
•Input data into registry
system
•Prints Certificate of
Registration.
•Application for new certificate of
registration(Form 2)
•Application for amendments(Form 4);
•Submission of annual surveys(Form1)
•Acknowledge receipt of application.
•Seek additional information
•Issue certificate of Registration or
rejection.
•Registrar
Returns file
to
Registration
officer.
•Pass file
to
Registrar
•Registrar checks data
entries system.
•Register or rejects
application.
•Signs certificate.
•
3.1. Application Process -steps to follow
a) application forms can be obtained from our office,
b) Fill & Complete the form and attach
i) personal bio data of individual applicant or
partners/Company background;
ii) Passport photo for individuals/incorporation certificate for
company applicant;
iii) A business plan;
iv) a receipt for payment of SBD$200.00 application fee,
c) Launch application forms to our office,
d) application will be acknowledged,
e) the Registration officer will register & assess applications
and data input the application;
3.3. Application Process -steps to follow cont..
f)
Registrar approves or reject applications;
g)
Registrar issues registration certificate or rejection notice,
# Appeals for rejected applications can be submitted to Chairman of the
Facilitation Committee,
4. Other Important requirements.
Having obtained a Foreign Investment registration
Certificate you must apply for the following requirements:1)
2)•
3)
4)
5)
6)
7)
company incorporation – Registrar of Companies
work permit –Commissioner of Labour
resident permit –Director of Immigration;
Register with Inland Revenue Division/MOF
Register with SINPF
Resource operational Licences
for business license –Clerk, HTC or Provincial Secretary
of the concerned Provinces.
 Tourism
 Agriculture
 Fisheries
 Mining
 Transport and Telecommunication
 Engineering and construction
Registrar of Foreign Investment
Foreign Investment Division
Ministry of Commerce, Industry, Labour & Immigration
P. O. Box G26, Honiara
Solomon Islands.
Tel: (677) 25081/20521 Fax: (677) 20522
Email: [email protected]
Website: www.investsolomons.gov.sb.