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Private limited company

Palau corporation for-profitPalau

What it takes to form, own and run a private limited company in Palau, and how its profit is taxed. Each figure links to the page it was read from.

This company type

At a glance

Owners' liability
Limited to what the owners put in
Officialpalauregistries.pwRead 25 Oct 2026
Quote
Unless otherwise provided in the articles of incorporation, a shareholder of a domestic for profit corporation is not personally liable for the liabilities of the corporation, including the acts or debts of the corporation except that a shareholder may become personally liable
Owners
A company may be one
Officialpalauregistries.pwRead 15 Oct 2026
Quote
of any incorporated entity that is to be an initial shareholder of the corporation, and the number and class of shares to be issued to each of them
Directors
At least 1 · one must live there · individuals only
Officialpalauregistries.pwRead 10 Oct 2026
Quote
at least 1 director must be a resident of Palau
Minimum capital
Not stated

The registry’s and the law’s own pages do not mention it.

Formation fee
USD 250 (about €219)
Officialpalauregistries.pwRead 10 Oct 2026
Quote
Articles of incorporation for For Profit Palau corporation $250.00
Tax on profit
Varies · 4–12%
Officialpalaugov.pwRead 15 Oct 2026
Quote
Business Profits Tax is assessed an applied at the rate of 12% on the person’s net income for each tax year.
Notary needed: NoResident director needed: YesFormed online: Yes

Form it

Who registers it

Registry
Formed without visiting
Not stated

The registry’s and the law’s own pages do not mention it.

Formed online
Yes

What it takes to form

A notary
Not required
A resident director
Required
Paying up the capital
The board may authorise shares to be issued for any tangible or intangible property or benefit, including cash, promissory notes and services, after determining the consideration is adequate; when the corporation receives the consideration the board authorised, the shares are fully paid and nonassessable (Palau National Code Title 12, s.605(b)-(d)).
Official palauregistries.pw read 25 Oct 2026
Quote
The board of directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the domestic for profit corporation, including cash, promissory notes, services performed, contracts for services to be performed

Own it

Who may own and run it

Directors
At least 1 · one must live there · individuals only
Official palauregistries.pw read 10 Oct 2026
Quote
at least 1 director must be a resident of Palau
Shareholders
A company may be one
Official palauregistries.pw read 15 Oct 2026
Quote
of any incorporated entity that is to be an initial shareholder of the corporation, and the number and class of shares to be issued to each of them
Members
Does not apply
A local company secretary
Not stated

The registry’s and the law’s own pages do not mention it.

A local registered agent
Required
Official palauregistries.pw read 15 Oct 2026
Quote
Each Palau corporation must continuously maintain in the Republic of Palau: (1) a registered office that may be the same as any of its places of business; and (2) a registered agent

Each year, at the registry

Annual registry fee
USD 100 (about €87)
Official palauregistries.pw read 15 Oct 2026
Quote
Annual report for Palau for-profit corporation $100.00 $200.00 AR-1
Accounts on the public record
Not stated

The registry’s and the law’s own pages do not mention it.

Audit for a small company
Not stated

The registry’s and the law’s own pages do not mention it.

Audit
Not in our records

Important dates

When each obligation falls due, as the authority states it.

Annual return to the Registrar
Not in our records

With Financial Institutions Commission

Not stated on palauregistries.pw/Documentation/PW/12_PNC_Division_1_Corporations_Act.pdf when checked

Notice of change of directors or officers
30 days after change of officers

With Financial Institutions Commission

Section 811(b) (directors) and section 824(b) (officers): notice within 30 days of the change. Filing fee $15 per notice.

What is public

Directors
Public
Official palauregistries.pw read 10 Oct 2026
Quote
make that information accessible to the Registrar upon request free of charge
Shareholders
Public
Official palauregistries.pw read 10 Oct 2026
Quote
make that information accessible to the Registrar upon request free of charge
Beneficial owners
To the authorities only
Official palauregistries.pw read 10 Oct 2026
Quote
make that information accessible to the Registrar upon request free of charge

Tax

Tax on profit

How this company type is taxed, which can differ from its place’s headline rate.

Varies · 4–12%

Business Profits Tax (BPT): 12% of net income for a person registered for PGST. A person not registered for PGST with gross revenue over $50,000 pays Gross Revenue Tax (GRT) of 4% of gross revenue instead; below $50,000 only an additional business license fee of $100 applies. The corporation is itself the taxpayer.

Official palaugov.pw read 15 Oct 2026
Quote
Business Profits Tax is assessed an applied at the rate of 12% on the person’s net income for each tax year.
CFC rules in Palau
Not in our records

Close it

Closing it

The other end, which most guides leave out.

Route
Articles of dissolution of a for-profit corporation by board and shareholders, filed with the Registrar (form J-6).
Official palauregistries.pw read 10 Oct 2026
Quote
Articles of dissolution of For Profit by board and shareholders
Statutory fee
USD 15 (about €13)
Official palauregistries.pw read 10 Oct 2026
Quote
Articles of dissolution of For Profit by board and shareholders

Every business in Palau

VAT

Standard rate
Not in our records
The tax authority’s pages have not been read for Palau.

Payment and banking services

None of the services whose lists we hold names Palau. Each provider, and what a listing means.

Reference

Its name and code

Kind
Private limited company
Derived our grouping, the same words in every country
Name in law
Palau corporation (for-profit)
Identifier
PW-FOR-PROFIT-CORPORATION
A form ISO 20275 does not list.