PNGINFORMEDIA

NEC Moves To Set Up Trade Commission In PNG

noreply@blogger.com (Walkdan Toviran) — Wed, 01 Feb 2012 14:21:00 +0000

The National Executive Council has approved a proposed structure to set up a Trade Commission and realign the Department of Foreign Affairs and Trade and Commerce and Industry (DCI) to support the trade function.

Prime Minister Peter O’Neill said that trade is of an increasing importance in a globalised market place, and that PNG’s natural resources are significant and the basis of a development mechanism and international significance needs to be better reflected in government structures.

The Prime Minister said in the absence of political leadership, centralized coordination and sufficient resourcing, trade as a function for development has been neglected and has accordingly resulted in very little market development and weak and uncoordinated negotiations.

“The overall objective is to achieve and maintain sustainable growth of international trade, wealth creation and sustainable economic growth, which will contribute towards achieving the goals of Vision 2050,” said O’Neill.

The proposed reform programs will build on the foundations and lessons learnt and place emphasis on efficient and accountable delivery of reforms and management of trade and commerce related issues.

The Prime Minister said a clear mandate for efficient and accountable management for trade and commerce will ensure better management and value for resource and will maximize the benefits from increased participation.

He explained the reforms will extend support to coordinating agencies involved in international trade and focus on trade facilitation and will strengthen the private sector’s capacity to participate in trade and commerce.

A Trade Committee will be established with particular instructions to develop a trade policy and agency restructure.

The Prime Minister said the division will remain under DFAT but will be elevated to have a dedicated deputy secretary for Trade.

O’Neill explained the trade division will have the primary responsibility of trade policy development, implementation of trade policy reforms and negotiations while the commission will be responsible for trade and investment promotion, development and negotiation assistance.

He further added that the IPA will eventually relinquish all trade promotion activities and focus on the regulation of onshore commercial activity.

IPA will then be renamed after a review.

“The International Business Division of DCI and associated position and budget will be relocated to DFAT to form the beginning of the trade commission. This initiative is intended to beef up the performance of trade as a function for robust development,” said O’Neill.

NEC has directed the trade committee with the international business unit of DCI and the trade division of DFAT to commence consultation and complete an updated trade policy within six months.

IPA To Implement Major Projects In 2012

noreply@blogger.com (Walkdan Toviran) — Wed, 01 Feb 2012 09:18:00 +0000

The Investment Promotion Authority will be implementing several projects this year in line with its re-structuring program.

The projects have been ongoing and the IPA is focusing on implementing them.

One project that is anticipated to be implemented is the Online Lodgement Project.

A contract between the IPA and a New Zealand company is due to be signed soon after necessary clearances from relevant authorities within PNG.

The PNG government in its 2012 Development Budget allocated K2.2 million through the Public Improvement Program (PIP) specifically for the online lodgement project.

The online lodgement project will enable all lodgements of company documents including foreign certification documents to be lodged online.

The project is set to positively affect the services provided by the IPA and the quality of lodgement would cut down on waiting time for documents to be processed.

The new approach shifts the onus and burden of submitting correct and complete information to the lodging party.

The system will also be able to advise during lodgement whether clients have filled out the forms correctly and will reject the application at the point of lodgement if information provided is incomplete or irregular.

The other major project is the review of the Companies Act and the Business Names Act.

A draft bill for the Companies Act is in place and will be presented to the National Executive Council early this year by the Minister for Trade, Commerce and Industry while the Business Names Act review is in its drafting stages.

Furthermore, the IPA Board has endorsed for the training phase of Post PNG staff in line with the IPA/Post PNG Agreement.

IPA will provide training for Post PNG staff in regard to standard procedures under this arrangement and the IPA’s Business Information and Facilitation Division officers have begun the training program.

A Memorandum of Understanding was signed in November 2011 to effect this arrangement which is expected to early 2012.

Under this arrangement, Post PNG will receive IPA registration forms and other compliance forms, including payments, at potentially any Post PNG counter in Papua New Guinea and deliver those forms and receipts to IPA through its Express Mail Service (EMS).

The forms once lodged and IPA fees paid in full either through bank deposit or by cash at the Post PNG counter then Post PNG charges IPA the administrative handling fees.

After the documents have been processed at the IPA, a response or a certificate is then dispatched through the normal postal service.

The initiative will ease some of IPA’s front counter arrangement, and will improve the reach of its services to more people around the country.

A training schedule is currently being drawn up for the Post PNG staff in the piloted centres.

The IPA is set on ensuring that these projects take effect.

Business and Investment Review will be bringing updates of the projects throughout the year.

The 3 Most FAQs About Doing Business In PNG

noreply@blogger.com (Walkdan Toviran) — Mon, 23 Jan 2012 04:15:00 +0000

Here are some FAQs to clarify some of the pressing questions that you might have about doing business in PNG.

By the way, these serious of questions were sent in by email from all over PNG and overseas, enquiring about how to do business in PNG.

I realised how common many of these questions were in all the queries received.

Hence this log which discusses the answers to three of the most FAQs about doing business in PNG.

3 MOST FREQUENTLY ASKED QUESTIONS ABOUT DOING BUSINESS IN PNG

1. How much money do I need to have to start a company as a National?

This is quite straight forward; financial information is not a determining factor for incorporating a company for both nationals and non-citizens.

This means that anyone can incorporate a company as long as they have the registration fee and their financial position is not a concern initially.

For non citizens, disclosures of financial information become relevant only after incorporation/registration of their companies and not at the initial registration stage.

As part of the Foreign Enterprise Certification requirement financial position of the shareholders are compulsory wherein IPA verifies whether or not the shareholders have sufficient monies for investment in the country...

In that, a minimum cash requirement is PGK100000 in sum.

2. What is the correct procedure to legally register and do business in PNG?

This is a simple one which I have responded to in past posts which you can read here and here.

3. If I do not have an accountant in my business how can I be able to do my accounting and pay tax accordingly or correctly?

This is a good question.

A lot of folks get stuck on this one.

What I would suggest firstly is to keep all your receipts for all the expenses incurred in carrying out your business in an empty shoe box.

Then find an accountant, give them the empty shoe box with all your expense receipts, pay them a grand or so to do your books.

Seriously!

It pays well to look after the specialists in your business

Let me put it this way.

In the 21st century there are specialists for all sorts of kinds of things you can name under the sun

If you are sick, who do you call up?

Your doctor right or your mum if she is sister in charge of a donor funded clinic

And so it is with your business or any business for that matter, if your book requires keeping today you go and see a firm or a professional who specializes in counting beans and pay them well while you are at it.

So that you can have time and money to buy a lifestyle

If you know what I mean

Hey I got to go now but I will be sure to post soon.

BTW if you have questions you would like answered about doing business in PNG, you can leave a comment or email us through our contact page

If we don’t have the answer you are after we will source it for you.

Cheers

Walkdan Toviran

2011 To 2012 In One Weekend

noreply@blogger.com (Walkdan Toviran) — Fri, 20 Jan 2012 16:34:00 +0000

Hello my dear friends

And a big happy belated 2012 shout going out to you all.

I know that 2012 will see many challenges on the business front in PNG especially as the PNG LNG Project construction phase picks up pace come mid year.

Definitely there will be much to learn and talk about in 2012 especially with the proposed launching of the new IPA online PNG business registry .

A real big plus for business consultants in the business services industry.

Imagine doing business with your clients while at the pool side, in a restaurant or under the coconut tree.

By the way I hope your festive season was fun.

The IPA Christmas function last year was held at the Holiday Inn just two days before Christmas day.

I had the privilege of sitting at table 1 with Mr. Ivan Pomaleu, the MD of the IPA.

A couple of hours into the function and Mr. Pomaleu says "I am sorry I don't have a message for your blog this year"

This was before he stood up to go up front stage to present a Christmas item with his divisional staff.

I am like "you know about my blog?"

And he goes "yes I know about your blog."

I wanted to pry further about how exactly he managed to find out about PNGINFORMEDIA.

But out of respect I just wondered about what he had just surprised me with while he walked to the front stage and performed a Christmas item.

One of the main reasons why I started blogging at PNGINFORMEDIA was to provide an alternative medium where there was interactive feed back from my target audience right there on the site.

You don't get that on a traditional website.

I realized that a blog provided the ideal platform because any interested person in the world could leave a comment right on the blog post concerned.

One would certainly think that the Investment Promotion Authority the agency responsible for investment promotion in PNG, would by now have a comprehensive website that even the most simple questions about doing business in PNG would be answered on it.

At the least it would free up the time at the back office processing at the companies office.

That is not to say that its recents web facelift has not made an improvement in its dissemination of vital business information to potential investors out there.

With more than a million page views so far with an average of a thousand page loads per day that is a lot traffic showing a keen interest in doing business in PNG.

As Mr. Ivan Pomaleu mentioned last time about the importance of e-Governance in all PNG government departments, part of which is providing timely information for your target niche or market on your website.

This is just my opinion and not to be sounding all so critical.

I reckon there is a great team within the PR unit of the IPA and that the IPA has a roll to maintain even on its own website.

However I just don't see what all that CMS training funded by the IPA, some years back was for, where some of us attended a Mambo CMS workshop so that each division had someone who knew how to compile and upload relevant information to the IPA website.

I wonder how much the Australian consultant who conducted the week long in-house workshop got paid for a Mambo CMS training that was never fully implemented as planned.

There was always a bottle neck at the IT department with uploading content onto the site with usually two approvals in between before IT allowed you internet access.

Web access at the IPA is restricted to senior management and certain officers whose duties require that they have at least 4 hours of internet access daily every business week.

The designated staff for updating the web gave up trying to update the site or just lost creativity.

I really don't know.

At the least I had the chance of getting a feel of how a Mambo CMS works on a live website and was able to compile and upload updated information for the BRRD page on the IPA site.

By the way the new IPA online business registration web service will be developed by an IT contractor from New Zealand with project funding coming from the IFC

The new online business registration service will see a tremendous improvement within the PNG business services industry in 2012 and onwards.

We will be seeing other agencies, government and non-government bodies stepping up to the plate as well and embracing e-Governance.

I must give credit for the current effort the IPA is taking towards facilitating online business registration in PNG.

I heard the IRC will also be implementing eTax lodgments.

Now how convenient would be this for you the business consultant?

Anyway, I know the last day of 2011 was a blast for some.

It was quite for me.

Well almost!

It went something like this if I can recall correctly.

I had turned around to the folks around me, wondering why they were in such a happy mood, you know cheering inside Pondo.

Then I looked at my mobile time it was 10 past midnight.

No wonder.

The New Year 2012 had come and I did not even realize it.

Strange but it felt just like just another ordinary Sunday morning on the first day of 2012.

Anyway, I have to go now.

Until the next time

To your success!

Walkdan Toviran

IPA Partners With The OBG For The Production Of "The Report: Papua New Guinea 2012"

noreply@blogger.com (Walkdan Toviran) — Mon, 19 Dec 2011 03:53:00 +0000

The Investment Promotion Authority in its bid to improve its services to
clients continues to enhance partnerships with stakeholders and
organisations to utilise their expertise in assisting to deliver IPA
services.

One of these moves involves the new arrangement with the Oxford Business
Group to co-publish "The Report: Papua New Guinea 2012."

The Report is a prestigious magazine widely read globally. Oxford
Business Group is a global publishing and consultancy company which
produces annual investment and economic reports in more than 30
countries.

Every business intelligence report is based on in- country research
conducted over an average of six months by experienced analysts.

The Organisation's consultancy division produces tailor-made reports,
feasibility studies and advice for a range of clients, who include blue
chip companies and government departments.

In recognising the calibre of the publication, the IPA has engaged the
OBG to do a detailed profile of the investment and economic condition of
Papua New Guinea.

The IPA is excited about this project as it will feature a round up of
all the sectors of the country's economy and other vital
investor-related information.

With the worldwide circulation and the high profile audience the OBG
boasts, potential investors will then have a better understanding of
PNG's investment climate and potentially make informed decisions about
investing in PNG.

The OBG team is led by the Project Manager, Annie Michaillidou who is
already in the country.

Discussion On ECT Between PNG And Australia To Begin

noreply@blogger.com (Walkdan Toviran) — Mon, 19 Dec 2011 01:43:00 +0000

Discussions on the proposed Economic Cooperation Treaty (ECT) between
PNG and Australia are set to begin at the end of this year.

This bilateral relation evolved since PNG's Independence and covers a
range of areas including security, trade, investment, development
cooperation, culture, and people to people links.

The ECT is intended to replace the Development Cooperation Treaty (DCT)
after the PNG Government saw the need for the current focus on aid.

This was on the basis that aid should not be the dominant factor in the
relationship as there are other areas that are also important and should
be considered particularly in trade, investment and business.

A working draft of the ECT has been prepared by the PNG Department of
Foreign Affairs with some input from the Department of Commerce and
Industry and has been forwarded to the Australian government while
Australia Non Paper was forwarded to the department of Foreign Affairs
to be deliberated on.

However the forthcoming negotiations will provide an opportunity for PNG
to pursue existing challenges in the relations with Australia.

This includes issues such as market access of agriculture and fisheries
products, development of small and medium sized enterprises, achievement
of the Millennium Development Goals, and employment opportunities in
Australia further to the Pacific pilot seasonal workers scheme.

IPA To Adopt Online Lodgment System

noreply@blogger.com (Walkdan Toviran) — Tue, 13 Dec 2011 02:30:00 +0000

The Investment Promotion Authority is taking steps closer to replacing the current Company Registration System with a web-based solution that will provide high quality, fast and efficient online services to IPA clients.

The online services will include:

Registration of entities including Local Companies, Foreign Companies, Business Names,
Associations, Business Groups; and Certification of Foreign Companies;
Lodgment of documents online, based on statutory requirements;
Generation of correspondence and certificates associated with the lodgment of documents;
Maintenance of registry data by authorized IPA staff;
Provision of public and internal searches.

The IPA is mindful that not everyone may have access to internet facilities once the system is up and running.

As such, the IPA will still maintain the current system whereby paper documents are lodged at the front counters and at regional offices.

Work on the online system will begin as soon as all requirements and legal processes are finalised.

IPA MD Comments On The Importance Of Websites For Efficiency In E-Governornance

noreply@blogger.com (Walkdan Toviran) — Mon, 28 Nov 2011 03:59:00 +0000

With the current economic growth and changing trends in doing business
in PNG, it is rather essential for all sectors in the public and private
sector to have their own websites.

This came from the Investment Promotion Authority's Managing Director,
Mr. Ivan Pomaleu when commenting on PNG's status of e-governance.

He said it was important that key government agencies were on par with
technology to ensure that information is made available to investors who
want to come into Papua New Guinea. "The IPA is the first point of
contact for any potential investors and serves as a one-stop-shop for
vital information on how to do business in the country," he said.

"At some stage IPA has to refer investors to the relevant government
departments to obtain specific information on specific queries."

Mr. Pomaleu said when the information is not readily available on the
website then the flow of information is cut off, hence slowing the flow
of investment into the country.

He said government departments must realise this development and allow
for the development and establishment of websites.

The government through its Medium Term Development Strategy recognises
the importance of having all government departments having their own
websites.

The IPA has adopted the government's Medium Term Development Strategy
and developed a new look website.

The organisation completed a new three year strategic plan in 2010,
designed to improve its responses to the greatly increased business
interest in PNG from overseas.

The implementation of the plan, produced with the assistance of the
International Finance Corporation has already seen the launch of the new
information website and will soon have online registration for
businesses.

The launching of the website has helped ease some of the queries from
potential investors.

The hits recorded by the website have reached over 1 million with close
to 1000 viewers each day.

Two Categories of Tax Payers In PNG

noreply@blogger.com (Walkdan Toviran) — Tue, 15 Nov 2011 05:14:00 +0000

For tax purposes there are two types of business entities that operate
in PNG.

1. Resident taxpayer
2. Non-resident taxpayer.

RESIDENT TAXPAYER OR LOCAL COMPANY

Generally for resident taxpayer (i.e. local company) all incomes of any
sort are taxable or assessable regardless of where they are derived.

Trading profit at the rate of 30%, tax on interests and dividends at 10,
15, 17 and 20% depending on the type of income and where it is derived.

For resident companies there may be tax incentives depending on where
(location) the company is operating or type activities is undertaking.

For instance income generated from agriculture is 100% exempted.

NONRESIDENT OR FOREIGN COMPANY

Nonresident taxpayers are taxed only on the income derived in PNG.

A foreign company can generally pay up to 47%.

There are incentives like double deduction on certain expenses like
educational expense, tax losses carrying period of 20 years.

Foreign companies involved in manufacturing activities are given
specific tax considerations as seen fit by tax office as well as 100%
depreciation on prescribed manufacturing plants.

Foreign companies involved in exploration (whether it be oil, gas,
minerals) get their exploration expenditures built over the exploration
period and amortized over the development period.

In broad terms a company incorporated in PNG is seen as a resident
company. There is still possibility that the locally incorporated
company can be taken as foreign company in rare case for tax purpose.

PNG Gold Export License Requirements

noreply@blogger.com (Walkdan Toviran) — Mon, 14 Nov 2011 02:24:00 +0000

Dear Sir

Thank you for your query regarding obtaining information on how you can obtain a gold export license.

The Investment Promotion Authority however does not issue gold export licenses but we hope we can provide sufficient information and contact details of the relevant organization that is responsible for issuing
such licenses.

The Bank of Papua New Guinea (BPNG) is the sole authority that issues licenses to companies who meet the requirements to export gold from PNG each year. The gold export licenses issued by BPNG are valid for one (1) year.

Requirements for Gold Export License

The following are the main criteria which need to be satisfied before the Bank of PNG would consider issuing a license to export gold.

The Bank of PNG would require:

Documentary evidence of the incorporation and registration of the company in PNG together with evidence of the issued and paid-up capital of the company which should be at least K25, 000.00;
A performance bond of an amount not less than K75, 000.00 in the first year of operation and upon the renewal of the license the value of the guarantee would be adjusted to a figure not less than K75, 000.00 or 75% of the previous calendar years annual turnover, whichever is greater. The bond is to be deposited for 18 months with the bank in PNG approved by the Central Bank;
The gold license holder to be single purpose company;
Evidence of financial standing including bank references and the company's latest audited financial statements;
Details of the area of the country which you intend to service;
Details of the expected turn-over in grams anticipated on annual basis;
Details of the persons overseas to whom you intend to sell the gold;
Details of the basis on which the proposed purchaser overseas will set the price that will be paid to the company for the gold; and
Details of the arrangements that have to be made for the assay of the gold prior to its export from PNG.

License Fee
There is no fee for the Gold Export License. However, the requirements above must be met in order to obtain a gold export license. For further information or clarification to your query or on the above requirements please liaise directly with The Controller of Foreign Exchange at the Bank of PNG on telephone (675)322 7200.

3 Steps To Set Up An Association In PNG

noreply@blogger.com (Walkdan Toviran) — Thu, 03 Nov 2011 12:59:00 +0000

An association is usually formed by a group of people, professionals, or even bodies coming together with a common interest. Examples of an association include human rights group, religious groups, political parties, sporting groups, youth groups, women’s or men’s groups, trade unions and land owner groups. In fact it is common today to find associations for all sorts of purposes.

So here are the 3 steps to register your association in PNG.

The first thing you want to do is to lodge your notice of intention to register an association with the Registrar of Companies Office. You do this on an Association Form 1. You should have already prepared a constitution for your association before hand as you will be required to submit with this form. Basically the constitution of your association should outline the rules,regulations and objectives of the association by which it will be operating and for which it is set up. This first step has no fees associated with it when lodging with the Registrar of Companies Office. The second step in the process should only be taken once you have received an approval in writing from the Registrar. You do not publish our intention with an approval from the Registrar.
Once you have received your approval you can then take the second step. The second step requires that you publish your intention in the either of the two daily papers in PNG. I would suggest you publish with The National as they have a competitive rate compared with The Post Courier. A quotation for publication can be obtained by enquiring with the sales department of these two dailies. Many people would rather jump to the third step then to waste time publishing their intent. However, the intent is a requirement of registration of an association in PNG as it is an objection period in which if any one objects to your intention they have the opportunity to do so by making their objections known to the registrar in writing. The publication period is a duration of 4 weeks.
After a month from the date of publication and if there is no objection to your intention you can finally ~~you~~ lodge your application for registration of your association on an association form 2. The prescribed fee to lodge an application for registration of an association is PGK70. Your application should come with a copy of the published article and a statutory declaration declaring that you did publish your intention in one of the daily papers.

Unlike registering a company in PNG, the whole process of registering an association in PNG, from start to finish would take you approximately 6 to 8 weeks, taking into consideration the 4 weeks objection period.

Image source: International Monetary Fund

Reopening Of The Ilimo Farm Feedmill At 15 Mile

noreply@blogger.com (Walkdan Toviran) — Thu, 27 Oct 2011 23:36:00 +0000

Reopening the Ilimo Farm Feedmill At 15 Mile
By Mr. Ivan Pomaleu, MD IPA
Dear all,
Further to my brief notes yesterday on same, you may again have read that the announcement has now prompted the Central Provincial Government, which owns the Ilimo Farm feedmill to jump into the opportunity to discuss possible ways of reopening the feed mill at 15 mile. Freighting feed from Lae is an expensive option and based on the model which I discussed yesterday, it will eat into the growers margins. So having a feed mill operational on this side of the country is the way to go.
Based on one newspaper report alone, one major supermarket alone requires 55 tonnes of chicken meat per week which is an enormous amount of birds to supply. This is excluding the major projects and hotel requirements so the incremental demand of late is exponential.
A number of staff members have expressed an interest to pursue this opportunity together with their people. In discussion with Director Hoot we have decided to task one of our own officer to work through and map out what the requirements are, including the key contacts for us to share those information with you, and to others who are interested in pursuing business opportunities in this area. We shall keep you posted on the information and contacts.
I am further aware that there is enormous excitement in the air from schools and groups about this opportunity so it is about getting into the act as early as possible.
Ivan Pomaleu
Managing Director
Investment Promotion Authority

Niugini Table Birds Factory Launch Yesterday In Port Moresby

noreply@blogger.com (Walkdan Toviran) — Thu, 27 Oct 2011 06:14:00 +0000

Niugini Table Birds Factory Launch Yesterday By Mr. Ivan Pomaleu Dear all, You all may have read on the papers that Niugini Table Birds are in the process of opening up a processing plant here in Port Moresby. It is a K80 million facility to be established over three years. Yesterday was the launch of the project and I attended. It is a direct response to the enormous growth in demand of chicken in Port Moresby based on growth in the industry. There is some importation of chicken from Australia because of this shortfall in supply capacity. Overall Port Moresby is a significant market for the chicken industry, from a national perspective. With the demise of the Ilimo farms in late 1990s this market is being supplied from Lae through Zenag and NTB, and their collective capacity to fulfill market demands has been found wanting. The cost of freighting one kilogram of chicken from Lae is K3 per kilogram, and that gets passed onto the consumers directly. The factory, based on my initial understanding, is likely to wholly or significantly depend on out growers to supply the factory. NTB does not have the chicken farm yet. That means that individuals and groups in NCD and Central province who are interested will be able to farm chicken and sell to the factory. It was very clear in yesterday's statements that this is the business model they are seeking to replicate here from their experience in Morobe. There is a possibility that they will establish a feed meal (or revitalize an existing one) and also build a hatchery here. Now here is why it is so exciting. NTB (as I understand based on how it works in Morobe) will give farmers (i) day old birds, (ii) stock feeds,(iii) drinkers, (iv)saw dust change, and (v) extension (farming) advice. After 6 weeks when the birds are harvested, the NTB deducts its costs and gives the balance to the farmer. All the farmer needs to do is build a shed and sign up with the NTB, and off course commit to the agreement on how regular must you take in day olds and work through the cycle. I am sharing with you this information, especially for those staff members who are from this side of the country, or have land or whose members of the family have land. This is an opportunity! With a signed up agreement with NTB, National Development Bank is willing to put up the credit to build a shed. Because the repayment to the bank will be at the factory door (same as nucleus estate in palm oil), which means that when NTB deducts its cost per batch of birds harvested from the farmer, a portion of that deduction will cover the loan repayment, and they pay that cheque to NDB directly. It is a win win situation for three parties - the farmer, the bank and the factory. Kind Regards Ivan Pomaleu Managing Director Investment Promotion Authority

PNG Power Limited Customer Service Call Campaign

noreply@blogger.com (Walkdan Toviran) — Wed, 19 Oct 2011 02:48:00 +0000

Slowly catching up with technology but not good enough.

PNG Power Limited (PPL) formerly PNG Elcom, until the privatization just recently, is a monopoly electricity utility company owned by the independent state of Papua New Guinea.

I am blogging this while calling the general enquiries and the customer help desk but phone just rang out.

What does that tell you?

All You Need To Know About Company Annual Returns (Form 22)

noreply@blogger.com (Walkdan Toviran) — Mon, 10 Oct 2011 03:32:00 +0000

GENERAL OVERVIEW ON ANNUAL RETURNS
An annual return within the context of the Companies Act refers to a form prescribed and named as Form 22 under the Companies Regulation 1998.

Requirement to submit annual returns is mandatory regardless of whether or not a company is physically operating or by book.

Form 22 is of course distinctively different from all the other returns within the PNG jurisdiction.

It is important to acknowledge at this stage that there are other government agencies that require submission of certain other documents on annual basis which may be referred to as annual returns which should not be confused with Form 22 required by theRegistrar of Companies.

Being a prescribed form, specific information are required therein and must meet requirements to serve intended purposes the ROC is mandated by the 'Act' .

ANNUAL RETURN FORMAT
The prescribed annual return form at present is in its simplified format in the sense that an average laymen should be able to understand and complete one.

Generally speaking the information required to be supplied therein are very basic as specified in Schedule 6 of the Companies Act.

Accordingly there are at least 29 items in the Form 22 for completion.

On normal occasions though, a company may not need to provide information on all 29 items depending on the specific circumstances faced by any particular company.

WHEN TO SUBMIT FIRST ANNUAL RETURN
By statute, the first annual return is required to be submitted in the year following the calendar year of its incorporation.

This barely means that any company incorporated from 1 January 2008 to 31 December 2008
for instance, must lodge their first annual return in the year 2009.

However, exceptions may be granted for companies incorporated in the last three months of the year, say from 1 October 2008 to 31 December 2008 to lodge their first annual return NOT in the following year but in the proceeding year at least within 18 months.

Obviously, it would be unfair to have a company incorporated at the end of the year to start
reporting in the year following calendar year of its formation.

WHEN TO DELIVER SUBSEQUENT ANNUAL RETURNS
Every director of all registered companies including overseas companies are mandated by the ompanies Act to ensure that subsequent annual returns are delivered to the Registrar of Companies once every calendar year with 6 months from the close of its financial year referred as 'balance date'.

REQUIREMENT TO ATTACH FINANCIAL REPORTS
It is worth mentioning at this stage that some companies 'classed' as reporting companies are required to attach audited financial statements to the Form 22 as additional requirement.

Any ordinary company becomes a reporting entity when shareholders resolve to appoint an auditor.

In addition, a company automatically becomes a reporting when total number of shareholders exceed 25, employs 100 plus employees and whose total value of assets exceeds K5 million.

CONSEQUENCES OF NONCOMPLIANCE
The failure of noncompliance by companies result in two main consequences. First, every director of such a defaulting company become personally liable for penalties set out in PART XXII of the Companies.

This is wherein our enforcement team takes legal proceedings to prosecute defaulting company directors. Second, the defaulting companies get struck off the list of registered companies.

DE-REGISTRATION OF COMPANIES
Companies which fail to deliver annual returns within reasonable timeframe are listed and given notice to comply or face de-registration either through publication in the daily newspapers or directly through
written correspondences.

Ample time is normally given after the publications while awaiting compliance. Companies that do not comply despite the issued notices are ultimately removed from the 'Register'.

WHAT HAPPENS AFTER A COMPANY IS DE-REGISTRATION
Management of the De-registered companies realize sooner or later that they become unable to carryon business whilst bearing a 'De-registered' tag.

This prompts aggrieved parties to reinstatement their companies.

REINSTATEMENT PROCESSES
There are two (2) possible processes known in the Companies Act 1997 through which a de-registered company can be restored to the Register.

It is up to the intending parties to decide for themselves as to which
process to take.

1. By National Court Order - Normally in this process the aggrieved party or parties make application to the National Court.

The ROC's consent may or may not be sought in this proceeding.

However, Court Order to reinstate de-registered companies are normally given on the condition that the ROC is satisfied with the requirements so far met.

2. Administrative Reinstatement -
Under this option the Registrar guides the applicants through the reinstatement process through the use of its adopted forms.

It involves obtaining consent/approval of the ROC, followed by publication of the applicants' intention to reinstate de-registered companies on newspapers and on the National Gazette.

For information this administrative reinstatement amicably takes up to two (2) months the most including the one (1) month objection period.

In both cases annual returns and their applicable fees must be paid and the Registrar must be satisfied that all outstanding requirements have been fully met before restoring a de-registered company to the Register.

Business Summit Promote PNG's Investment

noreply@blogger.com (Walkdan Toviran) — Sat, 01 Oct 2011 07:53:00 +0000

The Business Advantage International and the Port Moresby Chamber of Commerce and Industry recently co-hosted the Papua New Guinea Advantage conference aimed at providing high-level insights into where current and future opportunities lie in the country.

The conference which was held in Brisbane Convention Centre, Australia also provided practical guidance from experienced business people on how to tackle the various challenges that as a developing economy, PNG poses to those doing business in the country.

Other speakers were from key government agencies including the Bank of Papua New Guinea and Investment Promotion Authority.

Investment Promotion Authority's Director for Business Investment and Export Promotion, Mr. Clarence Hoot, was one of the presenters and he highlighted the changes taking place in IPA due to the growing trend in investment and the current challenges of doing business in PNG.

He said the IPA was making legislative amendments to accommodate the online registry system that is to come onboard to increase investment opportunities and businesses in the country.

This involves the aim of the Authority to provide its services online.

This is a work in progress between the IPA and the World Bank.

The Online Registry will eventually allow wider access internationally and across the country and linkage with other government agencies such as the Internal Revenue Commission, Customs and overtime with the Immigration Services and /Labor Department.

The summit was hailed a success and attracted a great number of participants.

Amendments To The PNG Companies Act

noreply@blogger.com (Walkdan Toviran) — Thu, 29 Sep 2011 06:08:00 +0000

The Investment Promotion Authority in collaboration with the International Finance Corporation is currently putting together a draft Bill on the amendments to certain sections of the Companies Act
1997.

The Companies Act 1997 is a replica of the New Zealand Companies Act 1993 and the review is aimed at updating the Companies Act and the Business Names Act to make it easier for small entrepreneurs to understand and also to bring it in accord with the changes in corporate governance.

The areas targeted for amendment include:

Changes that would offer increased protection and benefits for shareholders;
Clarifying the duties that are imposed upon directors;
Changes that would make the process of issuing shares more transparent and streamlined;
Changes aimed at protecting creditors of a company including changes in the liquidation process that would bring a more disciplined structure to the process so as to protect creditors;
Amending the process in which annual returns are currently filed, bringing certainty to a process that is overly complicated, streamlining certain filing requirements in anticipation of implementation of an online registration system;
Clarifying the powers of the registrar, including the specific authority to correct the register when an error is discovered.

The proposed amendments also require simplifying filing requirements and establishing an online registration system, clarifying specific duties of the Registrar to ensure better management of the registry.

IPA & IRC Reviewing Agreement On Provision of Information

noreply@blogger.com (Walkdan Toviran) — Wed, 21 Sep 2011 03:34:00 +0000

The Investment Promotion Authority (IPA) and the Internal Revenue Commission (IRC) are currently working on a Memorandum of Understanding (MOU) on the provision and sharing of information between the two organizations. 

The move came after the existing MOU expired some time back.

A series of meetings have begun in which officers from both organizations have met and did presentations on their roles and functions.

In their last meeting at the IPA Office, the IRC team made a presentation on the various tax requirements available, processes involved and the appropriate types of taxes for appropriate business entities.

The key factor highlighted by the IRC was that most companies avoid tax responsibilities after registering with the IPA.

Having an MOU in place would enable IPA staff at the Companies Office counters to advise clients on the various taxation requirements for the types of business entities they intend to register.

IPA could also use the opportunity to source updated Taxation information from the IRC to supply to its clients, especially investors when they enquire about necessary requirements before coming to do business in the country.

IPA Works Towards Achieving APEC Goals

noreply@blogger.com (Walkdan Toviran) — Fri, 19 Aug 2011 01:44:00 +0000

The Investment Promotion Authority has undertaken some activities making it well on track towards achieving the APEC's Bogor Goals.

The activities are outlined in a Roadmap which PNG has developed taking into account respective activities from each of the affected line departments, agencies and private sector bodies.

The Roadmap is aimed at assisting relevant agencies and departments to take ownership of their organization's participation in the APEC process, and using the Medium Term Development Plan (2011-2015) as a guideline to work towards the Bogor Goals of 2020.

The activities that IPA has so far undertaken, with the measures prompted in the APEC processes are:

Removal of Reserved activity list in 1994
Shortening time to certify foreign entities
Amendments of the Companies Act 1997
Amendment of the Securities Act 2000.

Ongoing activities are still being undertaken such as:

Collaboration with International Finance Corporation and World Bank,
Cutting down of costs of registration of business and entities,
Re-aligning of investment promotion priorities
Negotiation of Investment Promotion and Protection (IPPA) with PNG's major trading partners to ensure there is a sound legal business environment for investments and businesses to operate.

The IPA also faces some challenges which inhibit effective implementation of other APEC related activities and programs in the country. These include:

Resource constraints and/or limited of it
Lack of national cohesive engagement or relationship
Duplication of APEC responsibilities at the national level.

The IPA however, is adamant on carrying out its responsibilities effectively and efficiently in line with the APEC Goals by continuous training of staff, creating a harmonized system and ensuring that PNG enters into more IPPA/DTT negotiations with major trading partners.

All in all, there have been some great improvements to IPA's operations since the APEC leaders' declaration of the Bogor Goals.

IPA Survey Delayed For NCD

noreply@blogger.com (Walkdan Toviran) — Fri, 19 Aug 2011 01:38:00 +0000

A survey to be conducted by the Authority's Business Information and Facilitation (BIF) Division of the IPA in the National Capital District has been delayed for an indefinite period. The survey is an annual task under the Authority's function to ensure that all companies comply with the rules and regulations of conducting business in the country. Apart from business regulation compliance, the aim of the survey is also to ensure that companies ascertain their operations statistics, as previous reports have shown that few companies neglect certain regulations administered by the IPA under the Companies Act and the Investment Promotion Act. The survey was planned for this month, but it has now been deferred until ll necessary processes and preparations are in place. During the survey, officers will also gather export and import statistics from individual companies and seek views from them on what the government should do to make it conducive for business growth for the private sector in the country. The authority also uses the information gathered from the survey to compile a provincial profile for respective provinces. This profile is normally used for promotional purposes. IPA conducted a similar survey in Lae early this year which was hailed a success. The public will be advised once the survey for NCD is confirmed.

China & PNG Relationship Reaches New Heights

noreply@blogger.com (Walkdan Toviran) — Fri, 19 Aug 2011 01:35:00 +0000

The People's Republic of China and Papua New Guinea's development cooperation has now been transformed into actual trade and investment relations, showing a maturity in the relationship. This was highlighted when the Chinese Ambassador to PNG, H.E Qiu Bohua paid a courtesy call to the office of the Acting Prime Minister Sam Abal last month. Issues discussed at the meeting included the Deep Sea Tailing Disposal, promotion of trade and investment, exchange of high-level visits at ministerial and official levels and human resource development. Chinese trade and investment has recently increased in infrastructure development particularly in the construction of the sports stadium in Wewak, dormitories at the University of Goroka, proposed International Convention Centre, telecommunication to assist the Integrated Government Information System and the Pacific Marine Industrial Zone in Madang. These projects undertaken by the Chinese government strengthens the bilateral arrangements between the two countries. In acknowledging the arrangements in place, Mr Abal alluded to the government's strict adherence to the "One China Policy" and expressed satisfaction on the current investment relations that have reached unprecedented level in PNG. Meanwhile, a delegation from the Guangdong province of the People's Republic of China was in the country seeking opportunities in the NCD and the Eastern Highlands. The purpose of the Tour was to visit seven Pacific nations including PNG. The visit to PNG signifies the 35 years of friendship between China and PNG.

US To Re-open Office In PNG

noreply@blogger.com (Walkdan Toviran) — Fri, 19 Aug 2011 01:29:00 +0000

The Government of the United States of America has announced that it
will re-open its USAID office in Port Moresby.

The announcement was made this month following the visit of the US
Assistant Secretary of State, East Asia and the Pacific Region, Dr Kurt
Campbell.

Dr Campbell said the USAID office would cater for the strengthening of
relations with the Pacific Islands Forum and would deal with issues
relating to health, education, welfare, civil society and climate
change.

Acting Prime Minister, Sam Abal, in welcoming the intention of the US
government to restore its presence in the Pacific, assured Dr Campbell
of the PNG government's willingness to assist the USAID office when it
re-opens.

He also thanked the US government for choosing Port Moresby to set up
the USAID headquarters.

The US government has requested that regular meetings be conducted with
the embassy in order for proper coordination to engage other smaller
Pacific Island nations.

A New Shipping Service For Port Moresby

noreply@blogger.com (Walkdan Toviran) — Fri, 19 Aug 2011 01:12:00 +0000

Traveling by sea to Cairns, Australia can be an option now after the
announcement of a new sea service link between Port Moresby and Cairns.

Ports North Limited Chief Executive Officer Chris Boland in a statement
announced that the service will commence next month.

He said one of their clients Slient-World Shipping and Logistics will be
operating a weekly service between the two ports commencing 19 August
2011.

Silentworld is an Australian shipping and logistic company specializing
in the transport of cargo and passengers in remote locations and
difficult conditions.

In the past 12 months, Silentworld has had extensive operations in the
Solomon Islands and wider Pacific region, including running regular
services from Cairns to Thursday Islands in Australia.

According to Mr. Boland, the new service will be a great boost for the
Port of Cairns and the regional economy.

"The Port of Cairns has always been a critical and important contributor
to the region's economic growth," Mr. Boland said.

Director of Silentworld, Meyric Slimming said the introduction of the
weekly Port Moresby service will create an important new connection for
the business operating in Far North Queensland and further strengthen
the company's presence in the region.

He said the new service will boost the region's capability of supplying
resources and goods to PNG and the broader Asia Pacific Region.

Port Moresby Chamber of Commerce Chief Executive Officer, David Conn has
welcomed the new shipping link saying there are great opportunities on
Far North Queensland's doorstep and the move can only open up a new
avenue of trade for business in Australia and for PNG businesses who
wish to use Cairns as an export base with a reduced sailing time.

The announcement for the new shipping services comes at a time when
Ports North Ltd had just completed a report into trade opportunities for
Australia's northern most trading port on the eastern seaboard.

The investigation was designed to position the city as a major regional
trading hub for Papua New Guinea and the Asia Pacific Region.

PNG Increases Its Presence In The Solomon Islands

noreply@blogger.com (Walkdan Toviran) — Thu, 18 Aug 2011 04:40:00 +0000

Papua New Guinea investments in the Solomon Islands continue to increase as the two neighboring countries move to start negotiations on an Investment Promotion and Protection Agreement and Double Tax Treaty arrangements.

PNG’s presence is by far the biggest for Solomon Islands in the Pacific region and more PNG companies continue to explore opportunities available in the Solomon Islands.

The number of foreign investments from PNG registered in the Solomon Islands up to the month of June increased to 44 and they are mainly in the financial, agricultural, mining, telecommunication, accommodation, fishing, retail and wholesale and commercial services sectors.

Due to the increase, Papua New Guinea and Solomon Islands are currently looking at establishing an Investment Promotion and Protection Agreement (IPPA) and the Double Tax Treaty (DTT).

These arrangements are intended to harness investments in both countries and ensure the safety of private sector investment in the respective countries.

It is anticipated that the move would further enhance PNG’s presence in Solomon Islands.

PNG has transmitted a draft of the IPPA including a proposal to commence negotiations in August 2011 to their counterparts in Solomon Islands and is yet to receive a response from Solomon Islands on the draft and the proposal.

The Investment Promotion Authority will be playing a crucial part in the negotiation to ensure that PNG companies also have the maximum benefit in the development of the Solomon Islands/ PNG IPPA and DTT.

PNG companies which are already in the Solomon Islands are playing a pivotal role in boosting the country’s economy which was severely affected by the civil unrest there and some negative effect from the global economic crisis.

However with the current increased economic activities including a second mobile phone network, new shopping centre and commercial construction in Honiara there is promise of a more reformed, regulated commercial environment and a boost in investor confidence.

IPA Prepares for Business Advantage Conference

noreply@blogger.com (Walkdan Toviran) — Fri, 22 Jul 2011 07:21:00 +0000

Preparations are underway for the staging of the inaugural PNG Advantage Investment Conference to be held in Brisbane, Australia on the 5th of August 2011.

The event involves a one day conference featuring high-level insights into where current and future opportunities lie in PNG.

It will also provide practical guidance from experienced business people on how to tackle the various challenges PNG as a developing economy might pose to doing business here.

The event will be hosted by the Business Advantage International and the Port Moresby Chamber of Commerce and Industry and supported by the Investment Promotion Authority and the Queensland Government.

The program includes presentations on the current economic growth by policy makers and senior business officials from both countries.

It will also consist of panel discussions featuring many PNG based business leaders who will provide delegates with a comprehensive view of the PNG economy and the many opportunities it offers.

Australia, especially Queensland, has long standing economic ties with PNG and is its largest trading partner.

The number of Australian firms doing business in PNG is growing fast but untapped opportunities remain in many areas.

Registration forms for the conference can be downloaded from the following addresses: PNG Advantage Conference or IPA.