Possible Opportunities When You set up business in Timor-Leste
Timor-Leste became independent in the millennium. Hence, its traditional agrarian roots have plenty of potentials to bloom with the emergence of technology. Natural resources are aplenty in the country waiting for a suitable exploration. The current government is improving its economy through better politics, government spending, and more robust demands from private sectors. If you are an adventurous entrepreneur, you could set up business in Timor Leste for a change.
Reforming Through Development
Timor-Leste is consistently going through development. Albeit slower, the government is working hard to ensure every aspect of the country’s development is in proper structure. From politics to the regulatory framework to business opportunities, the Timor-Leste is reforming its economic growth. The country is rich and dependent on crude oil, its main export. But other places require facilities and convenience. Ambitious entrepreneurs are likely to set up business in Timor-Leste if they aspire to be part of national development.
Working With Nature
Timor-Leste enjoys the equatorial climate. Hence, it is warm and sunny almost all year round. The country’s natural landscapes are beautiful mountains and fantastic coastlines. Tourism in Timor-Leste is least known. Thus, if you are into the tourism and hospitality industry, you could start from scratch and innovate to suit the local community as well. The more jobs creation for the local community, the more likely the government will provide the necessary support. Since the government is working to diversify the country’s economy, tourism jobs for the locals could lead to better economic standing. Timor-Leste also enjoys arable land throughout the country. Most of the local is involved in farming with its current highest produce is coffee, corn, and coconut.
Timor-Leste’s tax system has had many reforms. The latest tax reform was in 2018, and it is to spur the domestic economy. The new tax system hopes to attract foreign investments. Timor-Leste offers a ten percent corporate and income tax to residents and international companies. But if you intend to set up business in Timor-Leste’s servicing industry, your corporate income tax is five percent. The services industry includes hotels, restaurants, and telecommunications related. Imported goods are common in Timor-Leste, and it comes with a sales tax of 2.5%.
At some point in a business, entrepreneurs would need financial support to expand their business. In Timor-Leste, however, financial aid can be non-existent. But if you could provide credible proof of your business success, there are chances foreign-funded banks would answer your call for help. US Dollar is the official currency in the country. Hence, all transactions are in USD.
The workforce in Timor-Leste are primarily youths from underprivileged families. They are ready to work with minimum skills. Currently, the government looks to improve its skilled labour through more vocational training. If your business requires an urgent skilled workforce, chances are limited to find in Timor-Leste locals. This makes starting a company in Timor-Leste more affordable in terms of operational costs.
Contact us if you’re interested in starting your own venture.