Timor-Leste Company Formation & Entity Choice

Entity types and incorporation

Business registration in Timor-Leste is centralised through SERVE, I.P. (Serviço de Registo e Verificação Empresarial), a one-stop shop for both domestic and foreign investors. Company law derives from the Commercial Companies Law. Unverified draft figures.

• Private limited company — Sociedade por Quotas / Limited Liability Company (Lda.) — most common form for SMEs (Commercial Companies Law (Law No. 4/2004))
• Joint stock company — Sociedade Anónima (S.A.) — public/joint-stock company for larger ventures (Commercial Companies Law (Law No. 4/2004))
• Sole proprietorship — Empresário em Nome Individual — single-owner unincorporated business (Commercial Companies Law (Law No. 4/2004))
• Minimum share capital — Lda. — USD 1.00 (no statutory minimum beyond a nominal amount) USD ((approx — sources vary between USD 1 and USD 5,000; confirm)) (Commercial Companies Law (Law No. 4/2004))
• Minimum share capital — S.A. — USD 50,000 USD (Commercial Companies Law (Law No. 4/2004))
• Lda. — number of members — Minimum 2 members (single-member Lda. permitted in some cases); commonly up to ~30 shareholders ((approx — confirm minimum/maximum)) (Commercial Companies Law (Law No. 4/2004))
• Registration authority — SERVE, I.P. (Serviço de Registo e Verificação Empresarial) — one-stop business registration (SERVE, I.P. enabling legislation)
• Registration timeline — Company registration through SERVE can be completed in a few days (often 1–3 working days for a simple Lda.) ((approx — confirm current timeline)) (SERVE, I.P. business registration procedures)
• Registration cost — Low nominal SERVE registration fees (typically under USD 100 for a basic registration) ((approx — confirm current fee schedule)) (SERVE, I.P. business registration procedures)
• Tax identification number — Businesses must obtain a Tax Identification Number (TIN) from the Timor-Leste Tax Authority before trading (Taxes and Duties Act (Law No. 8/2008))
• Core annual compliance — CIT return — File annual corporate income tax return by the last day of the third month after year-end (Taxes and Duties Act (Law No. 8/2008))
• Core annual compliance — monthly returns — Monthly WIT, services tax, sales tax and withholding tax returns filed by the 15th of the following month (Taxes and Duties Act (Law No. 8/2008))