It is an offence under Section 42 of the Act for a foreign Enterprise to operate without an IPA Certificate, carry on business in a Reserved activity (under the CBAL), or fail to comply with a Term or Condition of its Certificate as issued. 

A penalty of up to K100, 000.00 and a default penalty of PGK1, 000.00 for each day the offence continues will apply.

 It is important for all foreign Enterprises operating in PNG to comply with the Investment Promotion Act and also all existing business laws of the Papua New Guinea. 

Non-compliance may result in suspension and subsequent cancellation of the IPA Certificate.