Dmitri Mihhailov
Managing Partner
Leads Prifinance and personally oversees complex multi-jurisdiction structures. Your Palauan setup gets partner-level review before anything is filed.
Register a company in Palau
- the Pacific’s digital-ID islands.Company registration in Palau gives access to a nation of around 18,000 people with the US dollar under the Compact, a 12% business profit tax after the 2023 reform, a globally recognised digital-residency programme and a tourism economy built around world-class reefs. Foreign-owned businesses need Foreign Investment Board approval, several sectors remain reserved for Palauans, land can only be leased, banking is limited, and the digital ID is an identity document rather than tax residency.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
6,000+
companies servedcompanies served
Updated
Palau · at a glance
Legal formCorporation via Registrar
Time to set up2-6 weeks incl. FIB
Business profit tax12%
PGST10%
CurrencyUSD - Compact state
Foreign entryFIB approval required
4.7
★★★★★
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Palau in brief
The digital-ID islands, explained.
Palau is a micro-state with an outsized profile in two areas. The first is tourism: the Rock Islands, reefs and wrecks attract divers from around the world and support an economy that, in strong years, hosts visitor numbers many times larger than the resident population. The second is digital: the RNS.ID residency programme made Palau widely known in the crypto and online-identity space through a government-issued digital ID used for KYC. Supporting both are the US dollar, American defence and funding under the Compact through 2044, and the 2023 tax reform introducing a 12% profit tax and 10% PGST.
The trade-off is a tightly managed market. Every foreign-owned business needs a Foreign Investment Approval Certificate, several small-business activities are reserved for Palauans, and foreigners cannot own land outright, so projects rely on properly structured long leases. Banking is limited to a small number of US-linked institutions with full KYC and little appetite for paper companies. Digital residency is useful as government-issued identification, but it is not tax residency, citizenship or a substitute for platform and banking requirements.
Packages & pricing
Company registration in Palau - cost and packages.
01 - CORPORATION · PALAU
Company
from$2,900USD · all-in
Registration of a Palauan corporation includes the FIB application, incorporation with the Registrar, tax registrations and the first year of the registered address.
✓Sector review before filing - reserved activities identified in advance✓FIB / FIAC application prepared and filed✓Incorporation with the Registrar of Corporations✓PGST and tax registrations✓Registered address in Koror - first year✓Free pre-incorporation consultation
Optional add-ons: land-lease structuring - from $2,500 · digital-residency guidance - from $500 · maritime and fisheries permits - scoped individually · accounting - from $300/month · renewal - from $1,200/year.
Start with a consultation →02 - CORPORATION + BANK · PALAU
Most popularCompany + Bank Account
from$4,900USD · all-in
Everything in the first package plus a corporate USD account, with the banking file prepared and supported through onboarding and the limitations of the small local market explained in advance.
✓Everything in the Company package✓Bank file - business plan, source of funds and references✓Account with US-linked banks on the islands✓Native USD banking - no local currency conversion✓Payroll and wage-tax registrations✓Compact-contracting positioning where relevant
Optional add-ons: land-lease structuring - from $2,500 · permits - scoped · accounting - from $300/month · renewal - from $1,200/year.
Start with a consultation →Starting prices, confirmed before engagement. Registrar and FIB fees are itemised.
What you can do
Popular reasons to open a company in Palau.
Tourism drives private demand, the Compact supports infrastructure and service projects, and the digital-ID programme has created a distinct technology ecosystem around the jurisdiction.
Tourism & dive operationslicensed
Resorts, liveaboards and dive centres around some of the world’s most famous reefs.
Fisheries & maritimelicensed
Licensed activity within one of the Pacific’s significant exclusive economic zones.
Digital-residency servicesstandard
Projects built around the RNS.ID ecosystem, with a realistic view of what the digital ID does and does not provide.
Compact contractingstandard
US-funded infrastructure and service projects supported under the Compact through 2044.
Hospitality & leasesstandard
Resort and land-based projects structured through properly drafted long-term leases.
Trade & supplystandard
Supplying an island economy that imports a large share of what it consumes.
Why Palau
Key advantages of the jurisdiction.
✓
The US dollar and the Compact
US currency, defence support and funding under the Compact through 2044.
✓
A modern tax system
The 2023 reform introduced a 12% business profit tax and 10% PGST.
✓
A recognised digital-ID brand
RNS.ID has given a small Pacific state global visibility in the online-identity space.
✓
World-class tourism assets
The reefs and diving economy generate international demand without needing much explanation.
✓
US-linked stability
Postal, banking and institutional connections remain closely tied to American systems.
✓
Small enough for direct access
The scale of the jurisdiction allows businesses to deal more directly with regulators and decision-makers.
How it compares
Palau alongside the main Pacific alternatives.
Palau combines moderate taxation, the US dollar and a close institutional relationship with the United States. The Marshall Islands are stronger as an offshore and maritime corporate flag, Vanuatu offers a zero-tax model, Fiji provides greater regional scale, and Australia adds a developed economy and AAA positioning. Figures current as of 2026.
| Jurisdiction | Key tax | Signature story | Signature edge |
|---|---|---|---|
| Palau | 12% profit · PGST 10% | The digital-ID islands | USD plus the Compact |
| Marshall Islands | 0% offshore | The ship registry | Flags, not operations |
| Vanuatu | 0% | The zero-tax archipelago | Cheap, cyclone latitude |
| Fiji | 20% | The Pacific hub | Scale for the region |
| Australia | 25-30% | The AAA gateway | The continent next door |
PalauUSD plus the Compact
Key tax12% profit · PGST 10%
Signature storyThe digital-ID islands
Marshall IslandsFlags, not operations
Key tax0% offshore
Signature storyThe ship registry
VanuatuCheap, cyclone latitude
Key tax0%
Signature storyThe zero-tax archipelago
FijiScale for the region
Key tax20%
Signature storyThe Pacific hub
AustraliaThe continent next door
Key tax25-30%
Signature storyThe AAA gateway
Requirements
What a Palauan company actually requires.
01
FIB approval - a Foreign Investment Approval Certificate is required before operations begin and is the first major step.
02
An open sector - several small-business categories are reserved for Palauans, so the proposed activity must be checked before incorporation.
03
Registered agent & office - a Koror address and local agent are required and included in the package.
04
Land by lease only - foreigners cannot own land outright, so projects must use properly structured long-term leases.
05
PGST registration - the 10% tax applies once the relevant threshold is reached and is arranged alongside the corporate registrations.
06
Annual filings - the company must complete Registrar renewal and required tax filings each year.
How it works
From application to an operating company - four to eight weeks.
The FIB approval is the main timing factor in company registration in Palau. Once it is obtained, the corporate and tax-registration steps move relatively quickly in a jurisdiction of this size.
01Same day
Free consultation
We review the sector, reserved-activity restrictions and any land-lease requirements first.
022-4 weeks
FIB application
The foreign-investment file is prepared and submitted.
032-3 days
Documents & KYC
Passports, supporting documents and the power of attorney are collected in one complete file.
043-7 days
Registrar incorporation
The corporation is filed and registered.
053-7 days
Tax registrations
PGST, wage tax and employer registrations are completed.
062-4 weeks
Bank account
The USD banking file is prepared and supported with the islands’ banks.
Quick facts
Legal formCorporation
Business profit tax12%
PGST10%
CurrencyUSD
FIB approvalRequired - 2-4 weeks
Realistic timeline4-8 weeks
Renewal & accountingFrom $1,200/year
The defining gate for foreign investors is the FIB. Genuine tourism, maritime and service businesses can obtain approval, while paper structures and attempts to enter reserved sectors can be rejected. The application therefore needs to answer the commercial and ownership questions the Board actually reviews.
On the ground
On the ground in Palau.
Prifinance - Palau desk
Koror
Koror, Palau
01
Pacific specialists
Your setup runs with counsel who know the Registrar and the FIB personally.
02
Lease structuring
Long-term land leases drafted for decades, not disputes.
03
Digital-residency facts
What the ID does, what it doesn't. Before you build on it.
04
Also in Hong Kong, London, Dubai & more
A network of offices supporting cross-border structures.
We also have offices in
Hong Kong
Hong Kong
5/F, Yau Lee Centre, 45 Hoi Yuen Road, Kwun Tong
Vilnius
Lithuania
Gedimino pr. 2
London
United Kingdom
7 Bell Yard
Prague
Czech Republic
Vlkova 532/8, Žižkov
Berlin
Germany
Rankestraße 26
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Türkiye
Perpa Ticaret Merkezi, A Blok
Dubai
UAE
33 Level, Al Saqr Business Tower
Toronto
Canada
1110 Finch Avenue West, suite 406
Singapore
Singapore
3 Church Street, #29-68 Samsung Hub
Bangkok
Thailand
Unit P01, Penthouse, VASU1, 1 Sukhumvit 25 Alley
Foshan
China
A-Tower, Yuneng Digital Plaza, 46 Lishui Avenue South
Almaty
Kazakhstan
Republic Square 13
Bishkek
Kyrgyzstan
32 Razzakov Street
Taxation
12% business profit tax and 10% PGST.
Following the 2023 reform, Palau operates a relatively straightforward tax system based on a tax on net business profit, a standard goods-and-services tax and payroll obligations. The use of the US dollar also removes the need for local currency conversion.
Business profit tax - 12%
The post-reform rate applies to net business profits.
PGST - 10%
The goods-and-services tax.
Wage tax
Progressive withholding applies to employee salaries.
USD without an FX layer
Transactions run directly in US dollars without local currency conversion or exchange controls.
The levies that matter
Business profit tax12%
PGST10%
Wage tax - employeesProgressive
Social securityModest, US-style
LandLease payments - no freehold
Renewal & accountingFrom $1,200/year
Owners remain responsible for tax where they live. Palau digital residency does not alter those obligations.
Your team
The specialists who'll handle your case.
Eugeniu Bevziuc
International Business Consultant
Walks you from first call to working company - structure, documents, timelines - in plain language, in five languages.
Alex Danila
Corporate Services Specialist
Handles the FIB file, Registrar filings and the bank day to day, so your Palauan company launches without delays.
Follow Prifinance
Active across our channels.
Watch: opening a company in Palau with Prifinance
The digital-ID islands, entered with approvals in hand - company, FIB certificate, leases and bank in one prepared project. Full support, start to finish.
Talk to a specialist →FAQ
Common questions about company registration in Palau.
What does Palau digital residency actually provide?+
It provides a genuine government-issued digital ID and physical card that can be used for online identity verification where accepted. It is not tax residency, citizenship, a visa or protection from the rules of the holder’s home country.
Can I open a Palauan company without visiting?+
Yes. The FIB application, incorporation and tax registrations can all be handled by power of attorney. Banks usually prefer to meet a signatory, however, so operating clients often combine account opening with one short visit.
What is the FIB and will it approve my project?+
The Foreign Investment Board is the approval body every foreign-owned business must pass before operating. Genuine tourism, maritime, service and Compact-related projects with credible plans can be approved, while paper structures and attempts to enter reserved sectors are not.
Which sectors are closed to foreigners?+
A limited group of small-business activities, including certain retail and guiding services, is reserved for Palauans. Larger tourism, hospitality, fisheries and service projects remain accessible with FIB approval.
Can I buy land?+
No. Foreign freehold ownership is constitutionally prohibited. The standard route is a long-term lease, typically running for decades and drafted with appropriate renewal and transfer provisions.
What taxes apply in Palau?+
Since the 2023 reform, the business profit tax is 12%, PGST is 10%, and progressive withholding applies to wages. This replaced the former gross-revenue tax model.
How does banking work and can I transfer money to Palau?+
The banking market is small but operates in US dollars and requires full KYC. If you need to transfer money to Palau for company operations or send funds back out, transactions can be made directly in USD without a local currency conversion layer or exchange controls. Corporate accounts typically take 2-4 weeks with a properly prepared file.
How large is the market?+
Palau has around 18,000 residents, supplemented in strong years by visitor numbers several times larger and projects funded under the Compact. Businesses enter the market primarily for tourism, maritime activity, the EEZ, US-funded projects or the jurisdiction’s niche positioning rather than domestic scale.
What does the Compact guarantee?+
The Compact of Free Association with the United States, with funding renewed through 2044, supports defence, budget assistance, postal and institutional links and continued use of the US dollar.
How much does it cost and how long does it take?+
Company registration starts from $2,900, while the package with a bank account starts from $4,900. FIB approval takes 2-4 weeks, Registrar incorporation takes several days, and banking adds another 2-4 weeks. The realistic zero-to-operating timeline is 4-8 weeks. Land-lease structuring starts from $2,500 where required, and annual renewal starts from $1,200.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
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Free consultation
Start your Palauan company today.
Tell us about the business, and a specialist replies within one business day: corporation, FIB file, lease structure or a different flag, with a timeline and a fixed quote.
✓No obligation; the first consultation is free✓Reserved-sector and FIB check before you pay✓Transparent fixed fees, confirmed up front✓EN · RU speaking team