LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Company Registration in East Timor |

Overview of Company Registration in East Timor

Between Indonesia and Australia is East Timor. East Timor makes up the eastern portion of the island, and Indonesia makes up the western portion. East Timor has a diverse social and cultural landscape. Investors must therefore take into account how important culture and tradition are to conducting business in East Timor.

Overview

In East Timor, abroginal people make up more than 70% of the population. These people include Polynesians, Papuans, and Malayans. In addition, some of the residents are Chinese and Indonesian. This country has had rules since 1975. The Portuguese people initially dominated it, and afterwards the Indonesian people did. As a result, many rules govern how companies are registered. in Timor-Leste. It would be a synthesis of Portuguese civil laws, Indonesian laws, and other governmental regulations.

The three most common languages are Tetum, which is Portuguese, English, and Bahasa. According to the World Bank Index, this country has experienced poverty as a result of being ruled by many types of empires. The country is being negatively impacted by high unemployment. the low percentage of people who are educated and employed in society.

As a result of the quantity of oil and gas deposits in this nation, investors may want to think about forming a company in East Timor. In addition to this, the tourism industry is flourishing and draws people from all walks of life. Thus, it would be advantageous. to register a business in East Timor.

Benefits of East Timor Company Registration

The advantages of registering a business in East Timor are as follows-
Tourism- Since Indonesians liberalized their economy, this nation has excellent opportunities to expand its tourism industry. Tourists can choose from a variety of alluring locations in East Timor. Because of tourism, an investor may register a corporation in East Timor.
Oil and Gas reserves- Oil and gas reserves are plentiful, which will entice more companies to invest in East Timor. In East Timor, oil and gas firms are heavily involved in business.
Foreign Investment- The government actively encourages foreign investment in East Timor. Plans and subsidies come in a variety of shapes and sizes. given to international investors and businesses choosing to invest in East Timor.
Entry into the market- The government encourages international investment. Consequently, it would be simple to enter the East Timor market. A foreign investor seeking information about company registration in East Timor must get in touch with the relevant government agency.

Eligible Business Structures for East Timor Company Registration

The following business structures are acceptable for East Timor company registration-
Sole Proprietorship- This type of business, which is known as a non-incorporated corporation and is entirely responsible for all debt and liabilities of the owner for the business, is easy and inexpensive to set up with little obligations and compliance requirements.
Partnership- It is a firm without limited liability that is established between two people or entities under a specified name and in which the partners share joint responsibility for the partnership's debts and obligations to the extent of all of their respective personal assets.
Branch office, regional office, or subsidiary- A foreign corporation may open a subsidiary, representative office, or branch in the nation. It is a tool the East Timor government has made available to bring in foreign organizations to study and improve the nation's resources and infrastructure.
Company- An applicant may start a company as long as the legal requirements are met. There are a total of three different types of companies: joint stock companies, limited liability companies, and single shareholder limited liability companies.

Qualification Standards for Company Registration Eastern Timor

For the purposes of registering a business in East Timor, the aforementioned qualifying requirements must be met-
Minimum Shareholders: The applicant must meet the minimum shareholding requirement. For instance, a firm with just one shareholder is required. A joint stock company needs a minimum of three stockholders. A Limited Liability Company (LLC) must have a minimum of two stockholders.
Company Name: The applicant must reserve the company name prior to registering the business in East Timor. The firm name must comply with all applicable laws of intellectual property law. Additionally, the applicant must be given a document attesting to the name's originality.
Residency prerequisites: The potential applicant must also provide evidence of at least one administrator's Timor residency.
Share Capital Proof: The applicant must also offer official documentation of the share capital. The applicant would deposit the share capital, which is the authorized share capital, in the bank.
Shareholder's Civil Status: The shareholder's civil status must also be disclosed to the authority. The marriage certificate can be presented in order to do this.
Registered Office: The applicant for a company's East Timor registration must additionally show that the office is officially registered there. A map must be included with this.

East Timor's Company Registration Process

In East Timor, the following procedure can be used to register a company-

Place the necessary sum in the bank- The applicant must first deposit the necessary cash at the bank. Shareholders or the company's founders may choose how much cash the business needs, according to East Timor's Companies Law. The minimum capital that must be deposited in the bank is greater than one US dollar. Typically, the applicant would deposit the funds in the bank within one business day.
Register the company- The applicant must register the corporation in the following step. Applying for the registration certificate (CRC), tax identification number (TIN), and business license number will enable you to achieve this (AEA). In order to apply, the applicant must go to the Serviço de Registo e Verificaço. Empresarial (SERVE), which would handle the registration of businesses in East Timor. This organization serves as a one-stop shop for all processes related to East Timor company registration. The registration of the corporation is free. It would take around seven days to complete this operation. Documents also need to be submitted with this.
Analyze the Application- The application evaluation process would take 5 to 7 working days according to SERVE. The application procedure could, however, be delayed if there are any irregularities. SERVE might inquire further about the application from the applicant.
Registration- If the applicant's application and supporting paperwork are in order, the SERVE will provide them the certificate of registration. The name of this certification is Certificado de Registo Comercial, CRC, which is the business's certificate of commercial registration. The applicant would also receive the TIN (Tax Identification Number) and the Business License Number (AEA) along with this certificate.
Publication- The following website will publish the firm name after the registration process is finished.
Communication with the Ministry of Finance- The applicant would then need to register the firm name with the MOF. The name of this department is Ministério das Finanças. After getting their TIN number, businesses must register with this Ministry. To receive any kind of information, this number must be confirmed. It would take four days to complete this treatment.
Company Stamp- Businesses can perform the act of stamping. The SERVE does not demand that the company be stamped. It would be advantageous to obtain this stamp, though. When the applicant is communicating with governmental organizations, this stamp will be useful. It would take a private seal maker roughly two days to create this stamp.
Sign up with the Social Security Administration- The potential beneficiary would need to register with the relevant social security agency. The Ministerio do Solidariedade Social is the appropriate authority. A working day would be required to do this.

Compliances for East Timor Company Registration

For a corporation to be registered in East Timor, the following requirements must be met-

Corporate Tax- Corporations must pay an annual corporate tax of 10%. business tax return has to be submitted to the appropriate tax authority.
Annual General Meeting- Annual shareholder meetings are required to be held.
Board meetings- The Board of Directors shall meet at least once year.
TIN- In addition, after obtaining a tax ID number, businesses must register with the Ministry of Finance (TIN).

Documents which are necessary

The following papers must be submitted in order to register a business in East Timor-

Memorandum of Association
Articles of Association
Identification information for shareholders, including confirmation of their marriage.
Information on corporate body identity
Documents proving the company's money has been deposited
Map showing the general area of the registered office
Copies necessary for conducting business (Authorisations)
Foreigners Information on passports and visas
Residence and contact information for the administrator

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FAQs

Concept of LLP

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Structure of LLP

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.

(ii) provides flexibility without imposing detailed legal and procedural requirements

(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Other Countries where this form is available

The LLP structure is available in countries like United Kingdom, United States of America, various Gulf countries, Australia and Singapore. On the advice of experts who have studied LLP legislations in various countries, the LLP Act is broadly based on UK LLP Act 2000 and Singapore LLP Act 2005. Both these Acts allow creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.

Difference between LLP & ‘Traditional Partnership’

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct

Difference between LLP & Company

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
LLP will have lesser compliance requirements as compared to a company.

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Overview Benefits of East Timor Company Registration Eligible Business Structures for East Timor Company Registration Qualification Standards for Company Registration Eastern Timor East Timor’s Company Registration Process Compliances for East Timor Company Registration Documents which are necessary How can you contact Estabizz?FAQs Blog

Overview of Company Registration in East Timor

Overview

Benefits of East Timor Company Registration

Eligible Business Structures for East Timor Company Registration

Qualification Standards for Company Registration Eastern Timor

East Timor's Company Registration Process

Compliances for East Timor Company Registration

Documents which are necessary

How can you contact Estabizz?

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