The Solomon Islands consist of six major islands and over 900 smaller ones and are located east of Papua New Guinea in Oceania. Together, the islands cover about eleven thousand square miles and are home to over 650,000 people. Solomon Islands have reported a medium increase in GDP over the last decade and are a great place for starting a business. The official language is English.
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 trader in the Solomon Islands
A sole trader is an individual who owns and is managing their business on their own. In the Solomon Islands, a sole trader can be registered under their own name, or they can choose another name for their company and should have only one Tax Identification Number, regardless of whether they’re using their name or “doing business as”. Every business registered in the Solomon Islands must use their designated TIN to make annual tax payments.
How to register a sole proprietorship in the Solomon Islands
All aspiring business owners must register with the Chamber of Commerce in order to obtain a TIN. The following documentation is required in order to register:
- A form of ID
- A business name (if the proprietor is not using their own name to conduct business)
- A completed IR1 form
- Proof of payment of administrative fees
Any potential business owner must submit the IR1 form along with any accompanying paperwork to the Internal Revenue Division of Solomon Islands (IRD).
In addition to this, a sole proprietor should:
- Keep records, or income and expenditure
- Submit forms and returns as required by the IRD
- Pay the right amount of taxes on time