December 02, 2024
CONDUCTING A BUSINESS IN FALKLAND ISLANDS
The Falkland Islands, a British Overseas Territory in the South Atlantic Ocean, is a unique destination for business ventures. While it attracts many with its breathtaking scenery, there are also business opportunities for entrepreneurs in the fishing, tourism, agriculture, and oil exploration industries.
WHY CHOOSE THE FALKLAND ISLANDS FOR BUSINESS?
The Falkland Islands are characterized by a favourable geographic position and are ranked as one of the safest in the region politically, with people able to develop their businesses in the fishery, hospitality, and agricultural sectors while taking advantage of environmentally friendly practices.
- Strategic Location: Proximity to South America and Antarctic trade routes.
- Stable Governance: A sound legal and political system backed by the United Kingdom (“UK”).
- Niche Market Opportunities: With a small population, businesses can thrive by catering to specialized needs.
- Growing Economy: Fishing, agriculture, and tourism are key drivers, with emerging potential in hydrocarbons exploration.
KEY INDUSTRIES IN THE FALKLAND ISLANDS
- Fishing: The cornerstone of the economy, particularly squid and finfish, regulated under sustainable policies.
- Tourism: A growing sector due to the islands’ unique wildlife and remote charm.
- Agriculture: Focused on sheep farming and wool production.
- Energy: Exploration of oil and gas reserves, creating opportunities for ancillary businesses.
LEGAL AND REGULATORY FRAMEWORK
- Legal System: The law is primarily based on the English common law, the forms of business include a sole trader, partnership, and Limited Liability Company (“LLC”) which is required to be registered with the relevant registry in the locality.
- Business Structures: Common options include:
- Sole proprietorships
- Partnerships
- Limited Liability Companies (LLCs)
- Incorporation Process: Overlooked by the Falkland Islands Registry. Companies must observe the local company’s laws which include registration and filing appropriate incorporation papers and the appointment of directors.
LICENSING AND PERMITS
- Trade Licenses: Required for most businesses, obtainable from the Falkland Islands Government.
- Special Licenses: Businesses in fishing, tourism, and environmental sectors may need additional permits.
TAXATION AND FINANCIAL CONSIDERATIONS
- Tax Rates:
- Corporate tax rate: 26%.
- Personal income tax: Progressive, ranging from 21% to 26%.
- Customs and Import Duties: Applicable on most imported goods, though certain exemptions may apply.
- Financial Services: Limited but stable banking options, with major services provided by Standard Chartered Bank.
EMPLOYMENT AND LABOR REGULATIONS
- Workforce: Small, predominantly local population supplemented by expatriates.
- Employment Laws: Governed by the Employment Protection Ordinance, which outlines rights and obligations for both employers and employees.
- Work Permits: Necessary for foreign workers.
CHALLENGES OF DOING BUSINESS
- Remote Location: High transport and logistics costs.
- Limited Workforce: A small population can restrict labour availability.
- Environmental Regulations: Strict rules to protect the pristine environment, affecting certain industries.
STEPS TO START A BUSINESS
- Market Research: Understand local needs and opportunities.
- Choose a Business Structure: Decide between an LLC, partnership, or other options.
- Register Your Business: Submit required documents to the Falkland Islands Registry.
- Obtain Licenses: Apply for general and industry-specific permits.
- Set Up Operations: Secure premises, hire staff, and establish a supply chain.
SUPPORT AND RESOURCES
- Falkland Islands Government: Provides guidance on regulatory compliance and licensing.
- Chamber of Commerce: Offers networking opportunities and support for entrepreneurs.
- Legal and Financial Advisers: Essential for navigating local laws and tax requirements.
CONCLUSION
Planning to do business in the Falkland Islands requires one to be fully prepared and be ready to respond to the distinctive market conditions. Those businessmen who come up to the islands’ opportunities and challenges will be able to settle down successfully in this beautiful place.
HOW WE CAN HELP?
- We provide tailored support to our clients on how to optimally deal with the challenging and dynamic environment in Falkland Island.
- With the help of our professionals, you will establish a business in Falkland Island, meeting such requirements as registration, licensing, as well as tax obligations.
- Many of our clients are informed of the changes in laws, and we assist them in minimizing risks associated with such changes in Falkland Island.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
