MANILA, PHILIPPINES — The Asian Development Bank (ADB) has welcomed the passing of a new Corporations Act in Palau which will make it easier and faster to start and run a business.
The new act modernizes and simplifies business start-up and operation requirements by eliminating unnecessary and outdated formalities, which will make it simpler, faster, and more cost-effective to register and manage businesses in the future. The act also ensures that Palau complies with global anti-money laundering/countering the financing of terrorism obligations, strengthens and clarifies director duties, and makes the provisions for foreign companies seeking to do business in Palau more robust.
“Making it easier for businesses to start and operate is one of the most sustainable ways to support increased private sector activity and stimulate economic growth,” said ADB Pacific Liaison and Coordination Office Regional Director Lotte Schou-Zibell. “That’s why ADB is supporting Pacific governments to reform their business legal environments to be modern, inclusive, and well-suited to the region’s small island economies.”
More than 5 years in the making, the act was developed with support from the Pacific Private Sector Development Initiative (PSDI)—an ADB technical assistance program undertaken in partnership with the governments of Australia and New Zealand.
“The passing of this act gives Palau a modern foundation to support business activity,” said Palau’s Minister of Finance Kaleb Udui Jr. “These reforms reflect the Government of Palau’s commitment to improve its business legal environment, support private sector growth, and enhance Palau’s economic prosperity––a pillar of our Pathway to 2030.”
“The new Corporations Act will greatly improve the ease of doing business in Palau,” said Australia’s Ambassador to Palau Richelle Turner. “I congratulate the Government of Palau for enacting these reforms which will ensure the country has a contemporary, global business climate. Australia is proud to support PSDI’s work in Palau and across the Pacific.”
Established in 2006, PSDI works with ADB’s 14 Pacific developing member countries to improve the enabling environment for business and support inclusive, private sector-led economic growth.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.