Samoa Company Formation Frequently asked questions (FAQs)

Samoa is a Polynesian island country located in the Western Samoa Islands, South Pacific. Samoa consists of 9 islands, and is widely known as one of the most beautiful island countries in the Pacific Ocean.

Samoa provides a favorable tax system especially for international business. Combined with many attractive business incentives, the island country is one of the best places to form an offshore company.

For local companies operating in Samoa, the income tax rate is 27% (a reduction since January 2007). However, foreign companies doing business there are exempt from all income taxes.

In addition, many other local taxes and fees are also removed for foreign investors, namely capital gains tax, stamp duties, dividends, earnings or interests from outside Samoa.

Samoa’ tax policy is designed to help international business perform their best with low operating costs. In addition, the Samoa government also supports foreign investors with a variety of business incentives and benefits. Advantages it offers include:

• No annual reporting, accounting or any financial auditing requirements
• No required capital when setting up company
• Government fees for business operation are relatively low
• No foreign exchange controls on any currencies
• Strong asset protection legislation
• Complete political, economic and social stability

Contact One IBC now for more useful information on how to incorporate a company in Samoa. We are expertise in consulting and choosing the jurisdictions that best fit businesses’ demands. With many years of experience as an offshore company incorporation service provider, One IBC will be a trusted partner for businesses expanding the global market.

A Samoa offshore company is also known as an International Business Company (IBC). Samoa company registration will gain a lot of benefits such as tax policy, client confidentiality and required no accounting and auditing.

Furthermore, other advantages from administrative flexibility, no financial reporting requirements, and English is one of the official languages which help the investors and business greatly in doing business. The government always encourages businesses and entrepreneurs to invest and trade in Samoa.

Registering a business license in Samoa with the support of One IBC will reduce the confusion, required time and efforts of personal research into registering a Samoa business license.

There are 3 simple steps for registering a business licensein Samoa

• Step 1: License research

  One IBC determines all the licenses and permits that the customer’s business needs in Samoa. After that, One IBC will provide customers with the proper license or permit application forms. Along with that, all the information including instructions, supporting documents, and other requirements are also supported by One IBC.

• Step 2: License filling

  Whether the client’s business operates only in Samoa or multiple jurisdictions, One IBC still has to identify all application requirements for the client’s business license to be filed.

  Next, One IBC will finish all forms and ensure supporting documents are complete and accurate. Moreover, along with the application form, other legal documents also need to be submitted if required.

  The last of this step, One IBC will contact the licensing authority to ensure the process is going smoothly and on time.

• Step 3: Business license compliance

  Enterprises will always feel secure about the time to comply with business regulations in Samoa thanks to the support of One IBC with other necessary services through our online web portal and renewal teams.

With the advice and support from One IBC, Samoa business registry becomes easier, saves more time and is more convenient.

Overall, Samoa provides a favorable tax system to attract businesses all over the world. Here are some notable tax rates in Samoa:

1. Samoa income tax rate

Samoa income tax or corporate tax is determined by the net income companies have earned while conducting business, usually over the course of a single fiscal year. Samoa corporate tax rates are calculated as below:

• Taxable income under SAT15,000: 0%
• Taxable income from SAT15,001 to SAT25,000: 20%
• Taxable income over SAT25,000: 27%

However, foreign companies doing business in Samoa are exempt from corporate tax.

2. Samoa sales tax

The sales tax rate in Samoa is a tax based on the total cost of all products and services purchased. It is also called Value added goods and services tax (VAGST) and the rate is 15%.

3. Samoa withholding tax

Under a contract for services, there are two methods for Samoa withholding tax from income made by residents and non-residents. It is noticeable that this is not an additional tax, but rather a direct income tax withheld by the contract payer during the contract's progress payments. The resident withholding tax rate is 10% and non-resident withholding tax rate is 15% from the amount paid.

Samoa is a small island nation in the South Pacific, and its economy features a mix of traditional subsistence agriculture, fishing, and services. While Samoa may not have as diverse an economy as some larger countries, it does have different types of companies and businesses. Here are some common types of companies in Samoa:

1. Family-Owned Businesses: Many businesses in Samoa are family-owned and operated, especially in the retail and small-scale manufacturing sectors.
2. Tourism-Related Businesses: Given Samoa's natural beauty and cultural attractions, there are businesses catering to the tourism industry, including hotels, resorts, tour operators, and restaurants.
3. Agricultural Enterprises: Agriculture is an essential part of Samoa's economy. Companies involved in farming, fishing, and the production of agricultural products contribute significantly to the country's economic activities.
4. Retail Businesses: Samoa has various retail establishments, ranging from small local shops to larger supermarkets and malls.
5. Services Sector: The services sector includes a variety of businesses such as financial services, healthcare, education, and professional services like legal and accounting firms.
6. Manufacturing and Processing: Some companies in Samoa are involved in manufacturing and processing activities, including food and beverage production.
7. Construction Companies: With ongoing infrastructure development and construction projects, there are companies engaged in construction activities.
8. Technology and Telecommunications: As technology becomes increasingly important worldwide, Samoa has companies involved in telecommunications, information technology, and related services.
9. Transport and Logistics: Given Samoa's geographical location, companies in the transport and logistics sector play a crucial role in facilitating trade and movement of goods.
10. Utilities: Companies involved in providing essential utilities such as water, electricity, and telecommunications services are also present in Samoa.

It's important to note that Samoa has its own legal and regulatory framework for businesses, and the structure and types of companies may vary. Additionally, the business landscape in Samoa is influenced by its unique cultural and economic context. If you're considering business activities in Samoa, it's advisable to seek local advice and familiarize yourself with the legal and regulatory requirements.

Samoa has been characterized as a low-tax jurisdiction, and accusations of being a tax haven have been directed toward it by some international observers. Tax havens typically exhibit features such as low or zero corporate tax rates, stringent financial privacy laws, and regulatory frameworks that attract businesses and individuals seeking to minimize their tax obligations.

Samoa, like many other offshore financial centers, has faced scrutiny for its tax policies and financial secrecy practices. Such jurisdictions often draw criticism for potentially facilitating tax evasion and money laundering. However, it's important to note that countries may adapt their policies in response to international pressure, evolving standards, or participation in global initiatives aimed at addressing tax-related concerns.

Given the dynamic nature of international finance and ongoing efforts to enhance tax transparency, the status of Samoa as a tax haven may have changed since my last update. For the most up-to-date and accurate information, it is recommended to refer to recent reports from authoritative sources, including tax authorities, international organizations, or financial experts monitoring global tax practices and regulations.

Starting a small business in Samoa involves several steps, and it's important to follow the local regulations and requirements. Keep in mind that regulations may change, so it's advisable to consult with local authorities or a professional advisor for the latest information. Here is a general guide to help you get started:

1. Research and Planning:

• Identify your business idea and conduct thorough market research to understand the demand for your product or service in Samoa.
• Analyze the competition and identify your target market.

2. Create a Business Plan: Develop a detailed business plan outlining your business goals, target market, marketing strategy, financial projections, and operational plan.

3. Legal Structure: Choose a legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC). Each structure has its own implications for liability, taxes, and management.

4. Business Name Registration: Choose a unique and suitable name for your business and register it with the Business Registry Office in Samoa.

5. Business License: Obtain the necessary licenses and permits to operate your business legally. Check with the Ministry of Commerce, Industry, and Labour (MCIL) for specific requirements.

6. Tax Registration: Register your business for taxation purposes with the Samoa Inland Revenue Department. This includes obtaining a Taxpayer Identification Number (TIN).

7. Employment Laws: If you plan to hire employees, familiarize yourself with Samoa's employment laws and regulations. This includes contracts, wages, and working conditions.

8. Bank Account: Open a business bank account in Samoa to separate your personal and business finances.

9. Insurance: Consider obtaining business insurance to protect your assets and operations.

10. Location and Premises: Choose a suitable location for your business premises. Ensure that the property complies with local zoning regulations.

11. Utilities and Services: Arrange for necessary utilities such as water, electricity, and internet services.

12. Promotion and Marketing: Develop a marketing strategy to promote your business. This may include online and offline methods to reach your target audience.

13. Networking: Connect with local business networks and chambers of commerce to establish contacts and gain support.

14. Compliance and Record Keeping: Stay compliant with local laws and regulations. Maintain accurate financial records for tax and reporting purposes.

15. Seek Professional Advice: Consider consulting with a local business advisor, accountant, or legal professional to ensure that you are meeting all legal requirements.

Always stay informed about changes in regulations and seek advice from local authorities or professionals when needed. The specific requirements may vary depending on the nature of your business and the industry you're entering.

Don't have specific information on the current annual fees for registering and maintaining a company in Samoa. It's important to note that fees for company registration and annual maintenance can be subject to change, and they may vary depending on the type and size of the company, as well as any recent legislative or regulatory updates.

To obtain the most accurate and up-to-date information, it is advisable to directly contact the relevant authorities responsible for business registration and regulation in Samoa. The Companies Registry or the Samoa Ministry of Commerce, Industry, and Labour would be primary points of contact. These entities typically provide official and current information regarding the fees, documentation requirements, and any other relevant details associated with establishing and managing a company in Samoa.

Additionally, seeking assistance from professional service providers, such as legal or business consulting firms in Samoa, can be beneficial. These professionals often stay informed about the latest regulatory changes and can guide you through the process, ensuring compliance with local laws and regulations.

Please be aware that fees and regulations can change, so it's crucial to verify the information from official sources or consult with professionals who are up-to-date with the current business environment in Samoa.

The specific cost of registering a company in Samoa may vary depending on several factors, including the type of business entity, the size of the company, and any additional services or features you may require during the registration process. It's important to note that government fees and requirements for company registration can change, and it's recommended to verify the most up-to-date information directly with the relevant authorities.

To obtain the latest details on the cost of registering a company in Samoa, you should consider reaching out to the Samoa Ministry of Commerce, Industry, and Labour. This government agency typically oversees business registration and can provide accurate and current information on registration fees, documentation requirements, and any recent changes in the process.

Additionally, you may also explore the option of consulting with local business registration service providers or legal professionals in Samoa. These experts can offer valuable insights into the registration process, associated costs, and any nuances that may impact your specific situation.

It's crucial to gather comprehensive information before initiating the registration process to ensure that you meet all the legal requirements and have a clear understanding of the costs involved. Keep in mind that fees and regulations can be subject to change, so staying informed through direct communication with relevant authorities or professionals in Samoa is advisable.