Starting a business in Papua New Guinea: foreigner's guide (2026)

100% foreign equity is permitted in most commercial activities. A company is classified as a 'foreign enterprise' once it is 50% or more owned or controlled by non-citizens, triggering mandatory IPA certification under the Investment Promotion Act.

A foreign investor must first register a PNG company (or an overseas branch) with the IPA's Business Registration and Regulation Division under the Companies Act 1997. Processing takes 24 hours to 3 weeks; the filing fee is K500. At least one director is required; no minimum share capital is prescribed.

After incorporation, a foreign enterprise must apply online through the IPA registry for a Foreign Enterprise Certificate. The IPA reviews and approves the application; approval and certificate issue takes 2–5 weeks, with a K2,000 fee. Business cannot lawfully commence until this certificate is granted.

Once certified, the company must register with the Internal Revenue Commission (IRC) for income tax and GST, and separately for employer obligations. The US State Department's 2025 Investment Climate Statement notes this registration typically takes nine additional days.

The Cottage Business Activities List (CBAL) reserves certain sectors exclusively for PNG citizens, regardless of the level of local equity a foreign enterprise might offer. Excluded activities include small-scale agriculture and fisheries (annual sales ≤ K50,000), traditional arts and crafts, alluvial mining, and small retail and wholesale trade.

There is no statutory minimum share capital under the Companies Act. The entire IPA registration and certification process can be completed remotely online without the investor travelling to Papua New Guinea.