Norfolk is an island located in the Pacific Ocean between Australia and New Zealand. It is part of the Australian Union with wide autonomy. History of the island began in the 14th century, when there came sailors from Polynesia. The first European on the island was James Cook that happened in 1774. Attempts to colonize the island and to use it industrially lasted for almost 20 years, but in 1794 the island was abandoned because it was too cut off from civilization. The next attempt for colonization was carried out in 1856 and was successful. In early 20th century Norfolk is included in the Australian Union, and in the late 70th acquires the right to self-government. Currently, Norfolk is self-governed Australian external territory.
The most common business entities
On Norfolk Island can be registered this kind of companies:
Company limited by guarantee (CLbG)
Limited liability company with warrants and shares (CLB)
Company limited by shares (CLbS)
Unlimited company (UC)
The most popular is the third option - CLBs.
Norfolk legislative system is based on the Australian legislation and it, in turn, on the English common law. Business is governed by company law, adopted in 1985.
The minimum capital is defined by two ordinary shares respectively. This standard is expressed in the 10 thousand USD. This must be paid within 28 days after registration.
The main requirements for the directors and shareholders
Company registered on the island must have at least two directors, one of them must be a natural person. Directors' meeting is held once a year. Other limitations do not apply.
CLBs companies must have at least two shareholders. Shares parts owned by shareholders' must be registered, annual general meeting must be held. There are no restrictions on the nationality of the shareholders and their legal form.
Information of the two categories is stored in a public register.
Disclosure of the company’s beneficial to the government bodies
Information on beneficiaries is stored in free access register.
On the island there is no income tax, capital gains tax, income tax (with reservations), payroll tax, and several others. There is a requirement to have and keep financial statements, and service registry may have a request to submit a report for a specific period of time. There is a requirement to use independent auditors and the annual return.
Norfolk enterprises are required to have and keep accounting records for 7 years.