FOREIGN INVESTMENT DIVISION MINISTRY OF COMMERCE, INDUSTRY, LABOUR & IMMIGRATION. DERICK AIHARI DIRECTOR “WHAT YOU NEED TO KNOW ABOUT DOING BUSINESS IN SOLOMON ISLANDS.”

1. Brief Micro-economic background of SI 2.About Foreign Investment Division/MCILI 3.Foreign Investment Registration Process –steps to follow 4.Other legal requirements 5.Investment opportunities 6.Contact

1. Macroeconomic Background Modest real GDP growth over the past 2 decades Significant population growth – 2.9% per annum Large proportion of population under 25 Lowest GDP per capita in the Pacific – $1,100 in 2011 Relatively high inflation between of an average of 7.75% per annum – impact on food prices Human development is much more than increasing GDP

GDP growth, selected Pacific Island States,

How will the economy perform in the future? Significant decline in logging forecast over the next few years Agricultural production, especially major commodities of cocoa and copra, fairly stable Gold production suspended ABD’s prediction of moderate growth (of 4% pa) is now overly optimistic

Firm monetary and fiscal policy over the past few years How will changes in exports affect the fiscal position of the country? Less log export taxes (60% of exports; 14% of government revenue) Applied tariff rates are generally low (most below 10%), but tariffs are a significant course of government revenue (8%)

Solomon Islands exports by selected destination as % of total exports,

Solomon Islands imports by selected source country as % of total imports,

Trade Composition Major goods exports: timber (67%), gold (14%), fish (8%), palm oil (4%), copra (1%), coconut products (1%) and cocoa (1%) Major goods destinations: China (48%); Australia (17% - gold); EU (9%) Major goods imports: fuel (28%); machinery (22%) and food (19%)

Foreign Direct Investment Foreign direct investment stock Q – 7,297 – little outward direct investment Source of investments : Australia 438; Malaysia 412; China 262; NZ 76; PNG 57; Taiwan 43 Sectors : O/services 213; forestry 189; wholesale 174; mining 101; tourism 84; fisheries 79; transport/comm 67; construction 61; consultancy 44; agriculture 39; manufacturing 34; electrical 16

Taiwanese Registration in Solomon Islands YearTotal No. of Investors Total43 Investment Value 300million, 4,000 employment Review indicates 75% of registration is subject for de-registration – None performance.

No. of Registration per year by Sector Sector Total Agriculture 1 23 Mining 1 1 Forestry Fishery Tourism manufacturing Construction 1 1 W/Retail Other Services Transport/Comm 1 1 Consultancy Electrical

MCILI Immigration Internal Marketing & Promotion Trade Dispute Labour Business/Coop Consumers & Price Control Foreign Investment Industrial Develop Company Registry 2. About Foreign Investment Division/MCILI Admin/Accounts

Intermediary government organization; Our core functions include: (i) Promote foreign investment; (ii) Facilitate foreign investment through registration; (iii) Monitor foreign investment; (iv) Influence foreign policies and legislative reforms.

Intermediary government organization; Our core functions include: (i) Promote foreign investment; (ii) Facilitate foreign investment registration; (iii) Monitor foreign investment; (iv) Influence foreign Investment policies and legislative reforms.

Registrar Returns file to Registration officer. Registrar Returns file to Registration officer. Application for new certificate of registration(Form 2) Application for amendments(Form 4); Submission of annual surveys(Form1) Application for new certificate of registration(Form 2) Application for amendments(Form 4); Submission of annual surveys(Form1) Acknowledge receipt of application. Seek additional information Issue certificate of Registration or rejection. Acknowledge receipt of application. Seek additional information Issue certificate of Registration or rejection. Check application Register/ opens temporary file Input data into registry system Prints Certificate of Registration. Pass file to Registrar Registrar checks data entries system. Register or rejects application. Signs certificate. 3. Foreign Investment Process. F I Validation & Amendment Act 2009, FIR Individual Corporate

3.1. Application Process -steps to follow a) application forms can be obtained from our office, b) Fill & Complete the form and attach i) personal bio data of individual applicant or partners/Company background; ii) Passport photo for individuals/incorporation certificate for company applicant; iii) A business plan; iv) a receipt for payment of SBD$ application fee, c)Launch application forms to our office, d) application will be acknowledged, e)the Registration officer will register & assess applications and data input the application;

f)Registrar approves or reject applications; g)Registrar issues registration certificate or rejection notice, # Appeals for rejected applications can be submitted to Chairman of the Facilitation Committee, 3.3.Application Process -steps to follow cont..

4. Other Important requirements. Having obtained a Foreign Investment registration Certificate you must apply for the following requirements:- 1) company incorporation – Registrar of Companies 2)work permit –Commissioner of Labour 3)resident permit –Director of Immigration; 4)Register with Inland Revenue Division/MOF 5)Register with SINPF 6)Resource operational Licences 7)for business license –Clerk, HTC or Provincial Secretary of the concerned Provinces.

 Tourism  Agriculture  Fisheries  Mining  Transport and Telecommunication  Engineering and construction

Registrar of Foreign Investment Foreign Investment Division Ministry of Commerce, Industry, Labour & Immigration P. O. Box G26, Honiara Solomon Islands. Tel: (677) 25081/20521 Fax: (677) Website: