The Federated States of Micronesia is a country in the Pacific Ocean, consisting of 607 small islands, divided into four states: Yap, Chuuk, Pohnpei, and Kosrae. The capital city, Palikir, is located on the largest island, Pohnpei. The official language is English, and the currency used is the American dollar.
The economic activity of the Federated States of Micronesia consists primarily of subsistence agriculture and fishing. The tourist industry has a large potential; however, the lack of adequate facilities slows down the development. This is one of the numerous business opportunities in the FSM.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole Proprietorship in Micronesia
A sole proprietorship is a business owned and run by an individual - the owner. It is the most common form for small businesses. The owner is not legally separated from the business. Their liability is unlimited, and they are personally responsible for all assets and debts of the business.
This form is often chosen because it is easy to establish and run. The changing environment can be challenging for large companies, but not for a sole proprietorship. The owner is the only decision-maker, so they can make changes promptly.
The laws do not require local citizens to share ownership in a foreign business.
Before you start operating your sole proprietorship, you have to register with the authorities first.