Starting a Business · Tonga
How to start a business in Tonga as a foreigner (2026)
Tonga shaded by its starting a business status
Starting a business in Tonga as a foreigner: moderate (Foreign Investment Act 2020 (Act 7 of 2020) and Foreign Investment Regulations 2021, administered by the Business Registries Office under the Ministry of Trade and Economic Development (MTED)).
Foreign investors in Tonga must complete multiple sequential steps, company incorporation, a mandatory Foreign Investment Certification, a business licence, and tax registration, before commencing operations. The Foreign Investment Act 2020 maintains Reserved and Restricted Activity lists that bar or condition foreign participation in specific sectors, though 100% foreign ownership is permitted in all non-reserved activities. A fully online registry launched in December 2024 has substantially reduced administrative burden.
Key points
Any overseas person, including a locally-incorporated company where a non-Tongan controls more than 25% of voting shares, must obtain a Foreign Investment Registration Certificate before commencing business. The application fee is TOP 500 (approx. USD 210).
The standard process comprises at minimum four steps: (1) incorporate a company or register a business name via the Business Registries Office online portal; (2) obtain Foreign Investment Certification; (3) obtain a Business Licence; (4) register with Tonga Revenue Services for a Tax Identification Number (TIN). Each step is sequential and administered by a different authority.
On 11 December 2024 Tonga launched a fully online Business Registries portal (businessregistries.gov.to) enabling company incorporation, business-name registration, and foreign investment certification filings with secure online payment, replacing the prior paper-based system and reducing cost and processing time.
The Foreign Investment Act 2020 empowers the Minister to maintain a Reserved List (activities open only to Tongan nationals) and a Restricted List (activities foreigners may enter only if prescribed conditions are met). The 2021 Regulations reduced total reserved/restricted activities from 17 to 11, making Tonga one of the more open Pacific economies to FDI outside those sectors.
In sectors not on the Reserved or Restricted list, 100% foreign ownership is permitted. A company is classified as a foreign investment business once a non-Tongan controls more than 25% of voting shares, triggering certification requirements but not a mandatory local-partner rule.
Company incorporation fees range from TOP 100-750 (approx. USD 40-315) depending on entity type. No statutory minimum paid-up capital is required for general company formation; individual sector licences may impose their own capital thresholds.
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