Business Formation

Check the uniqueness of the proposed company name and reserve a name

Agency: Registrar of Corporations

The Registrar of Corporations can perform a name search and reserve a corporate name for USD 20.

Time and cost: 1 day, USD 20

Notarize the company documents

Agency: Notary

A notary must notarize the company documents.

Time and cost: 3 days, USD 1.01 per page

File the incorporation documents with the Registrar of the Companies.

Agency: Registrar of Corporations

The Registrar of Companies reviews the incorporation documents, and if they are acceptable, transmits the documents and the certificate of incorporation to the governor for approval. Although the law does not mandate the use of an attorney for company incorporation, a professional is normally used to avoid rejection of the application. The articles of incorporation include the following:

  • Company name;
  • Period of duration;
  • Company purpose;
  • Total number of shares;
  • Address of the registered office;
  • Number of directors and their names and addresses.

The fee for professional services, if used, is an additional USD 750.

Time and cost: 7 days, no charge

Obtain the payment receipt (four duplicates) and pay the registration fee and license fee at the Finance Office of the state government

Agency: Finance Office of the Pohnpei State Government

Fee schedule for licenses:

  • Up to the first 10,000 authorized shares: USD 0.10 per share;
  • More than 10,000 and fewer than 100,000 authorized shares: USD 0.15 per share;
  • More than 100,000 authorized shares: USD 0.20 per share.

Time and cost: 1 day, see comments

Obtain the certificate of corporation

Agency: Registrar of Corporations

Business founders can obtain the certificate of incorporation at the Registrar of Corporations’ Office.

Time and cost: 1 day, included in procedure 4

Apply for a business license from the municipality

Agency: Municipality

Fee schedule for business license:

  • Retail: USD 100;
  • Manufacturing: USD 150;
  • Professional services: USD

The business license must be renewed every year.

Time and cost: 2 days, depending on numbers and types of licenses, $100 for retailing

Register for social security

Agency: Social Security Administration

Companies must register with the Social Security Administration to pay social security tax withheld from employees.

Social security tax is filed quarterly. The applicant needs to file the following documents:

  • Application form;
  • Incorporation charter and company bylaws;
  • Incorporation certificate;
  • Business license;
  • Record of employees (names, social security number, payroll record).

The Social Security Administration issues an employer identification card in a business day.

Time and cost: 1 day, USD 10