What is a foreign Enterprise?

A foreign Enterprise is a business entity that is wholly owned or that is 50 percent or more owned, controlled, or managed by non-citizens.

Who should apply for IPA Certification?

All foreign Enterprises wishing to conduct business in Papua New Guinea must apply for formal IPA certification.

Is there a specified time frame in which a foreign Enterprise must apply for IPA Certification?

Yes.  Any document to be lodged with the Authority must be submitted within one month of the event to which it relates per Section 6(2) of the Investment Promotion Regulation.

What is considered as “carrying on business”?

The definition of “carrying on business” is listed under Section 3 of the Investment Promotion Act and includes amongst other matters:

“(a) making application for any permit, licence, lease or authority issued for commercial purposes by the State or by a State body; or”;
(c) maintaining an agent, employee or officer for the purpose of soliciting or procuring or entering into orders, arrangements, agreement or contracts (whether conditional or not) whether or not the agent, employee or officer is continuously resident in the country; or
(d) maintaining an office, agency or branch (however described) whether or not the officer, agency or branch is also used for one of those purposes by another enterprise.”

Further reference should be obtained from the Investment Promotion Act.

How does a foreign enterprise apply for Certification?

The prescribed Form 3 Application for Certification must be completed and submitted with supporting documents, as well as, the prescribed fee of PGK2,000.00.  The fee is payable in bank cheque to the Investment Promotion Authority.

Are there other modes of payment available?

Cash and company cheques are generally not accepted.  For those Enterprises who are based overseas and do not have an agent in Papua New Guinea, bank transfer or telegraphic transfers are acceptable.

Is Incorporation or Registration under the Companies Act, 1997 necessary?

Yes.  To be a legally recognized entity in Papua New Guinea, a Company must be registered under the Companies Act.  This requirement is a prerequisite to IPA Certification.