Yu Yet Come Na Lukim!

It really does not matter what the media portrays and what the perception is of this country out there, because unless you come and see for yourself first hand you just will never know.

Misconception and misinformation in the media about PNG just does not add up to the true reality in PNG. The truth is most Papua New Guineans are fun loving, peaceful, respectful, generous and simple people.

When you arrive, you will just never know what to expect from one day to the next. It is a living experience to the new comer, yet to the local it is just another ordinary day.

Many local tourists who tour other parts of this country are amazed about the beauty of the land and marine environment and the simple, diverse and unique cultural lifestyle in PNG.

In fact, some tourists who recently toured PNG were amazed to find that the atmosphere in PNG was different and untrue from what they learnt and heard.

"The people are beautiful and friendly and the beautiful smiles on their faces disproved all those stories," said Mrs Nicky Dovener one of the tourists.

This is just one of the many responses received from tourists showing relief after visiting the country themselves and seeing first hand the hospitality of the people and the astounding beauty of the land.

As one of the song by popular singer/songwriter in PNG, Robert Oika, goes, "yu yet come na lukim". That is "come and see for yourself".

How to register your company in PNG

A company can be incorporated through an agent (preferably an accountant
or attorney) who may arrange to file the incorporation documents for
you. If you want to incorporate your company in PNG, the forms to use
are company forms 1, 2, 3, 4 & 6.

Where all the applicants are citizens in the proposed company it is
K200. Where at least an applicant is a non-citizen it is K500.

Note that an applicant refers to either a director, secretary or a
shareholder.

As opposed to incorporation, overseas companies seeking registration may
do so through their resident agent (also preferably an accountant or
attorney).

This category of companies is already incorporated in their own country
but is seeking registration in PNG under their incorporated name to
carry on business in PNG. If you want to register your overseas company
in PNG, the form to use is company form 46. The prescribed registration
fee is K500.

For overseas company applications, a certified copy of the certificate
of incorporation of that overseas or some other evidence verifying
registration of that overseas company must be attached with the form 46
application. If your overseas company has a company constitution a
certified copy of the same must be annexed also.

Stamp duty on company registrations and company constitutions was
abolished in the last budget (2008). Therefore, you need only pay the
required registration fees as stated above to have your company
registered in PNG.

There is also the requirement of foreign certification under the IPA Act
for non-citizens as well as foreign enterprises after registration of
your company, which is a topic we will get into in a future post.

I hope you have found this post helpful. If you have any questions in
relation to doing business in PNG please leave your comments below.

PNG Companies required to lodge annual returns whether active or dormant

A company upon registration is subject to the requirements of the Companies Act 1997. And as such all companies are therefore required to lodge a company annual return (Form 22 or 52) every year whether the company is trading (active) or not trading (dormant) and pay the
prescribed fee and late fee where applicable.

For overseas companies, upon registration, they are automatically reporting entities which are supposed to file audited accounts done in PNG Kina with annual returns (both branch accounts and main/consolidated accounts).

If they prefer not to file branch accounts done in PNG Kina the IPA provides exemptions. Also the IPA grants approvals to report in foreign currency if they wish to present their accounts in their dominated foreign currency other then PNG Kina.

Therefore every overseas companies are required apply for both exemption and foreign currency reporting approval. For those foreign owned PNG incorporated companies which chose to report in foreign currency may also apply for approval. The accounts must be audited by the PNG registered company auditors while exempted companies main account need not to be audited by local auditors.

I just wanted to get one thing straight about a company annual return. They are not tax returns.

A tax return is to be lodged with the IRC. While a company annual return is to be lodged with PA. I am only mentioning this because there are many people who still confuse the two and
therefore fail to lodge their company annual returns with the IPA.

Failure to lodge a company annual return will usually result in deregistration of the company.

As the director of a company, you must ensure that your company is up to date with its company annual returns to avoid deregistration of your company.