Register a company in Palau, the digital-ID islands.

Set up in the eighteen-thousand-person nation that punched above its weight - US dollars under the Compact, a 12% business profit tax after a clean modern reform, the Pacific's most famous digital-residency ID, and reef tourism the diving world calls the best on earth. Managed market, managed expectations: every foreign business needs Foreign Investment Board approval, several sectors are reserved for Palauans, land can only ever be leased, the banking is thin - and the digital ID is an identity document, not a tax residency, whatever the internet told you.Eighteen thousand people, outsized fame: US dollars under the Compact through 2044, a clean 12% profit tax, the Pacific's famous digital-residency ID, and reefs divers call the world's best. The terms: FIB approval gates every foreign entry, some lanes are reserved, land is lease-only, banking is thin - and the ID is identity, not 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
Alex Danila
Alex Danila
Your Palau specialist
in
4.7
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Palau in brief

The digital-ID islands, decoded.

Palau is a rounding error on population charts and a headline act in two niches. The first is water: the Rock Islands, the reefs and the wrecks draw the world's divers and anchor a tourism economy that, at full strength, hosts multiples of the nation's population every year. The second is digital: the RNS.ID residency program made this micro-state famous in the crypto world - a government-issued digital identity card obtainable online, used by tens of thousands for KYC. Around both sits an unusually solid frame for a Pacific micro-state: the US dollar as currency, American defence and funding guaranteed under the Compact through 2044, and a 2023 tax reform that swapped archaic gross-revenue levies for a clean 12% profit tax and a 10% GST.

The terms. This is a managed micro-market, not an open playground: every foreign-owned business needs a Foreign Investment Approval Certificate from the FIB, several small-business sectors are constitutionally reserved for Palauans, and land cannot be owned by foreigners at all - long leases are the only route, and we structure them properly. Banking is thin: a handful of US-linked institutions, real KYC, and no appetite for paper companies. And the digital residency deserves its own paragraph: it is a genuine, useful government ID - and it is not a tax residency, not a citizenship, and not a magic key; some platforms accept it gladly, others have grown sceptical, and we say which before you pay anyone. Palau works for real tourism, maritime and Compact-adjacent business - entered with approvals in hand.

A micro-state with two headline niches: the reef economy that draws the diving world, and the RNS.ID digital residency that made Palau a name online. Under both: the dollar, American defence and funding to 2044, and a 2023 reform that left one of the Pacific's cleanest tax codes - 12% on profits, 10% GST.

The terms: the FIB approves real businesses and refuses paper ones; reserved sectors exist; land is constitutionally lease-only; the banks are few and properly sceptical; and the famous ID changes nothing about where you owe tax. Palau works for real tourism, maritime and Compact business - approvals first.

Packages & pricing

Two ways to start.

01 - CORPORATION · PALAU

Company

from$2,900USD · all-in

Registration of a Palauan corporation - FIB application, Registrar incorporation, tax registrations and the first year of the registered address included.

Sector check first - reserved lanes mapped in advanceFIB / FIAC application prepared and filedRegistrar of Corporations incorporationPGST & tax registrationsRegistered address in Koror - first yearFree pre-incorporation consultation

Optional add-ons: land-lease structuring - from $2,500 · digital-residency guidance - from $500 · maritime & fisheries permits - scoped · accounting - from $300/month · renewal - from $1,200/year.Add-ons: lease structuring from $2,500 · digital-ID guidance from $500 · permits scoped · accounting from $300/month · renewal from $1,200/yr.

Start with a consultation →
02 - CORPORATION + BANK · PALAU
Most popular

Company + Bank Account

from$4,900USD · all-in

Everything in the first package plus a corporate USD account - prepared, filed and defended by us, thin-market realities stated up front.

Everything in the Company packageBank file: business plan, source of funds, referencesAccount with the islands' US-linked banksNative USD banking - no conversion, everPayroll & wage-tax registrationsCompact-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.Starting prices, confirmed first. Registrar and FIB fees itemised.
What you can do

What our clients open in Palau.

The reef pays, the Compact funds, and the ID card brings the curious.The reef pays, the Compact funds, the ID brings the curious.

Tourism & dive operationslicensed

The world's most famous reefs. Resorts, liveaboards, dive shops.

Fisheries & maritimelicensed

Licensed access to one of the Pacific's great EEZs.

Digital-residency servicesstandard

Building around the RNS.ID ecosystem - scoped for what it is.

Compact contractingstandard

US-funded infrastructure and services through 2044.

Hospitality & leasesstandard

Resort and land projects on properly structured long leases.

Trade & supplystandard

Provisioning an island economy that imports nearly everything.

Tourism & divinglicensed

The world-famous reefs.

Fisheries & maritimelicensed

A great Pacific EEZ.

Digital-ID servicesstandard

Scoped for what it is.

Compact contractingstandard

Funded through 2044.

Hospitality leasesstandard

Decades, done right.

Trade & supplystandard

Islands import everything.

Why Palau

Why Palau.

The dollar and the Compact

US currency, defence and funding guaranteed through 2044.Stability to 2044.

A clean modern tax code

The 2023 reform: 12% on profits, 10% GST. Simple and recent.12% and 10%, young.

The digital-ID brand

A micro-state with global name recognition in the online world.Global recognition.

World-class tourism asset

Reefs that market themselves to the planet's divers.Markets itself.

US-linked stability

Postal, banking and legal threads running to American systems.Banking and law threads.

Small enough to know

Regulators you can meet. Decisions made by people, quickly.Regulators you can meet.

How it compares

Palau vs the Pacific.

The comparison, as of 2026:Marshall Islands: flags, not operations. Vanuatu: zero and cyclones. Fiji: the regional hub. Australia: the continent next door. Palau: USD, the Compact and the ID. As of 2026.

JurisdictionKey taxSignature storySignature edge
Palau12% profit · PGST 10%The digital-ID islandsUSD plus the Compact
Marshall Islands0% offshoreThe ship registryFlags, not operations
Vanuatu0%The zero-tax archipelagoCheap, cyclone latitude
Fiji20%The Pacific hubScale for the region
Australia25-30%The AAA gatewayThe continent next door
PalauID
Profit tax12%
StoryThe digital-ID islands
Marshall Isl.Registry
Offshore0%
StoryThe ship flag
VanuatuZero
Corporate tax0%
StoryCyclone latitude
FijiHub
Corporate tax20%
StoryRegional scale
AustraliaAAA
Corporate tax25-30%
StoryThe gateway
Requirements

What a Palauan company requires.

01
FIB approval - The Foreign Investment Approval Certificate before operating. The real gate; we file it first.
02
An open sector - Several small-business lanes are reserved for Palauans. We map yours before anything.
03
Registered agent & office - A Koror address and agent - included in our packages.
04
Land by lease only - Foreign freehold is constitutionally barred. Long leases, structured properly, are the route.
05
PGST registration - The 10% GST applies past the threshold. Set up with the incorporation.
06
Annual filings - Registrar renewal and tax returns. We calendar both.
How it works

How registration works.

Six steps. The FIB sets the calendar; the rest follows quickly in a jurisdiction this size.Six steps. The FIB sets the calendar; the rest follows quickly at this scale.

01
Free consultation

Sector, reserved-lane check, lease needs - mapped first.

Same day
02
FIB application

The foreign-investment file prepared and filed.

2-4 weeks
03
Documents & KYC

Passports, proofs, POA. One clean pass.

2-3 days
04
Registrar incorporation

Corporation filed and issued.

3-7 days
05
Tax registrations

PGST, wage tax, employer files.

3-7 days
06
Bank account

USD file prepared and defended. The islands' banks.

2-4 weeks
Quick facts
Legal formCorporation
Business profit tax12%
PGST10%
CurrencyUSD
FIB approvalRequired - 2-4 weeks
Realistic timeline4-8 weeks
Renewal & accountingFrom $1,200/year

Palau's defining gate is the FIB: the approval is genuinely obtainable for real tourism, maritime and service businesses - and genuinely refused for paper constructions and reserved-sector attempts. The file we build answers the questions the board actually asks.

On the ground

On the ground in Palau.

Prifinance - Palau desk
Koror
Koror, Palau
+44 748 881 18 54info.en@prifinance.com
Mon-Fri · replies within one business day
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 Tallinn, London, Dubai & more

A network of offices supporting cross-border structures.

We also have offices in
Estonia
Tallinn
Estonia
Roseni 13
+372 602 65 11
Hong Kong
Hong Kong
Hong Kong
5/F, Yau Lee Centre, 45 Hoi Yuen Road, Kwun Tong
+852 5808 0297
Lithuania
Vilnius
Lithuania
Gedimino pr. 2
+370 520 738 81
United Kingdom
London
United Kingdom
7 Bell Yard
+44 748 881 18 54
Czech Republic
Prague
Czech Republic
Vlkova 532/8, Žižkov
Germany
Berlin
Germany
Rankestraße 26
Portugal
Madeira
Portugal
Rua da Alegria 31, 1F
+351 300 528 936
Hungary
Budapest
Hungary
Korányi Sándor u. 4
+36 18 001 911
Türkiye
Istanbul
Türkiye
Perpa Ticaret Merkezi, A Blok
+90 212 900 47 64
UAE
Dubai
UAE
33 Level, Al Saqr Business Tower
+971 800 0321096
Canada
Toronto
Canada
1110 Finch Avenue West, suite 406
+1 416 613 7311
Singapore
Singapore
Singapore
3 Church Street, #29-68 Samsung Hub
Thailand
Bangkok
Thailand
Unit P01, Penthouse, VASU1, 1 Sukhumvit 25 Alley
China
Foshan
China
A-Tower, Yuneng Digital Plaza, 46 Lishui Avenue South
Kazakhstan
Almaty
Kazakhstan
Republic Square 13
+7 717 269 59 04
Kyrgyzstan
Bishkek
Kyrgyzstan
32 Razzakov Street
Taxation

Palauan taxes, post-reform.

One of the Pacific's cleanest codes after the 2023 reform: a real but modest profit tax, a standard GST, and no archaic gross-revenue levies. The USD environment removes the currency line entirely.One of the Pacific's cleanest codes: 12% on profits, 10% GST, USD native - and no currency line at all.

Business profit tax - 12%

The reformed rate on net profits. Modern and modest.Modern and modest.

PGST - 10%

The goods-and-services tax, cleanly administered.Cleanly run.

Wage tax

Progressive withholding on salaries. The payroll line.Progressive.

No currency games

USD native. No conversion, no controls, no drama.No drama.

The levies that matter
Business profit tax12%
PGST10%
Wage tax (employees)Progressive
Social securityModest, US-style
LandLease payments - no freehold
Renewal & accountingFrom $1,200/year

Owners remain responsible for tax where they live - and the digital residency changes nothing about that, which is exactly the detail most sellers of it omit.

Your team

The specialists who'll handle your case.

Dmitri Mihhailov
Dmitri Mihhailov
Managing Partner

Leads Prifinance and personally oversees complex multi-jurisdiction structures. Your Palauan setup gets partner-level review before anything is filed.

Eugeniu Bevziuc
Eugeniu Bevziuc
International Business Consultant

Walks you from first call to working company - structure, documents, timelines - in plain language, in five languages.

Alex Danila
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.

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

Palau, approvals in hand.

What does the Palau digital residency actually give me?+

A genuine government-issued digital ID - useful for online identity verification and accepted by many platforms - plus a physical card. What it is not: a tax residency, a citizenship, a visa, or a shield from your home country's rules. Some exchanges embrace it, others have grown sceptical. We tell you which before you build anything on it.

Can I open a Palauan company without visiting?+

Yes - the FIB application, incorporation and tax registrations run by power of attorney. The bank prefers meeting a signatory and the islands reward showing up, so most operating clients visit once. We sequence everything so the trip is short.

What is the FIB and will it approve me?+

The Foreign Investment Board - the gate every foreign business passes. Real tourism, maritime, service and Compact-adjacent projects with credible plans get approved routinely; paper constructions and attempts at reserved sectors do not. Our file answers what the board actually asks: who you are, what you'll do, who benefits.

Which sectors are closed to foreigners?+

A short list of small-business lanes - small-scale retail, certain tour-guiding and similar - reserved for Palauans by law. Everything substantial in tourism, hospitality, fisheries and services is open with approval. We check your exact model against the list before anything is filed.

Can I buy land?+

No - foreign freehold is constitutionally barred, full stop. The route is long leases, typically decades, structured with renewal and transfer terms drafted properly. Every resort on the islands runs this way; done right it is bankable, done casually it is a dispute.

What are the taxes now?+

Since the 2023 reform: 12% on business profits, a 10% PGST on goods and services, progressive wage withholding - replacing the old gross-revenue system. It is one of the region's cleanest codes, young enough that transitional questions arise; we handle them as routine.

What is the banking reality?+

Thin and functional: a small set of US-linked banks, genuine KYC, no interest in shell games. Accounts open in two to four weeks with a defended file, in dollars. For operating businesses it suffices; for anything exotic, we say plainly that Palau is the wrong venue.

How big is the market really?+

Eighteen thousand residents - plus, in good years, many multiples of that in visitors, plus the Compact's funded projects. Nobody enters Palau for domestic scale; they enter for the reef economy, the EEZ, the US-funded pipeline, or the flag's niche brand. We price your model against the real market.

What does the Compact guarantee?+

The Compact of Free Association with the United States - renewed with funding through 2044: defence, budget support, postal and institutional links, and the dollar as currency. It is the stability floor under everything else, and the reason this micro-state banks and contracts like a US-adjacent territory.

What does it cost and how long does it take?+

From $2,900 for the company, from $4,900 with a bank account. The FIB takes two to four weeks, the Registrar days, the bank two to four weeks more - realistic zero-to-operating is four to eight weeks. Lease structuring from $2,500 where land is involved. Renewal from $1,200/year.

Client notes
Google4.7★★★★★

Founders who wanted it done right.

Google4.7★★★★★
★★★★★Google
“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…”
K N
K N
Google
★★★★★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”
Mina Kedis
Mina Kedis
Google
★★★★★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.”
Юрий Валерьевич
Юрий Валерьевич
Google
★★★★★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…”
Anna Anna
Anna Anna
Google
★★★★★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…”
Анастасия Одокиенко
Анастасия Одокиенко
Google
★★★★★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!”
Maria Jose Santome
Maria Jose Santome
Google
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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.A Palau specialist will reply within one business day with a recommendation, a timeline and a fixed quote.

No obligation; the first consultation is freeReserved-sector and FIB check before you payTransparent fixed fees, confirmed up frontEN · RU speaking team
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