The 20-year-old Independent Country Has Business Potentials Yet to Be Explored – Set Up Business in Timor-Leste
Not too long ago, Timor-Leste made it into the world headlines, becoming independent in the contemporary era. After that, the government of Timor-Leste began improving the state for the better. Rich in untapped natural resources, Timor-Leste is set to move forward with plenty of business opportunities. Find out why set up business in Timor-Leste will be successful for the strong-willed.
More Development Needed
As an underdeveloped country, Timor-Leste has a lot going for the willing business person. Where there is lack of development, there is an urgent need for improvement in facilities and convenience. With the government ready for any takers to help with the country’s necessary infrastructure, entrepreneurs intending to do business here will perhaps become founding developers. The essential foundations are mainly focused in the capital, Dili. With 12 other municipalities to explore and develop, there are limitless possibilities.
Timor-Leste enjoys a tropical climate with generally hot and humid weather. It is brimming with beautiful highlands and coastlines. Hospitality and tourism is also another aspect the government is promoting for business purposes. Besides the natural landscape, Timor-Leste’s primary export is oil and gas, which makes up the backbone of its economy. Its fertile land and long-standing agricultural activities in corn, coffee, beans, coconut, sweet potatoes and peanuts production is a promising industry.
Financial support for business in Timor-Leste can be tricky. Historically, banks have had a negative experience when offering financial assistance. But, with proper proof and credibility, foreign-funded banks could work out something with the foreign business entities to provide the necessary support. The currency that is used in Timor-Leste is USD. Hence, all transactions are in USD.
In 2018, the government of Timor-Leste reformed the tax system to spur development of the domestic economy. With a renewed tax system, the Timor-Leste government is hoping to attract foreign investment. The overall corporate and income tax in Timor-Leste is ten per cent. But if you are in the service business such as hotels, restaurants and telecommunications, the tax rate is five per cent. Most of the goods sold in Timor-Leste are imported goods which comes with a sales tax at 2.5%.
With seventy per cent of the population aged below 30, there is the right amount of youth ready for work. Since the country has yet to manage the wealth gap, most of these youth come from underprivileged families. The workforce skills in Timor-Leste is pretty minimum, and the cost of hiring generally matches the skills.
Setting up a business in Timor-Leste is challenging, but you can make profits from it if you are resourceful and strong-willed. The environment in Timor-Leste may come as a surprise to many as it is commonly associated with the lesser economies. After 20 years of independence, Timor-Leste has come a long way from being a torn state into a peaceful and progressing country.