Palau’s Financial Institution Commission (FIC) is designated as the Registrar of Corporations, according to a recent Executive Order signed by President Surangel Whipps Jr.
According to Executive Order No. 477., FIC has the “technical capacity and institutional knowledge to be designated as the Registrar Corporation that will administer the Corporate Registry promulgate regulations and adopt policies effectuating the purposes and procedures of the Act.”
Palau is modernizing and updating its Corporations’ laws of the Republic.
In 2021, Palau Public Law 10-11, or the Corporations Registry law was signed which will regulate corporations in Palau, both domestic and international as well as for-profit and not-for-profit corporations.
In his signing statement, Whipps said the 143-page law upgraded the current corporations’ law and “replaces the law with a modernized version necessary to ensure good governance and lawful business practices.
An earlier press statement from the ADB said the new law will modernize and simplify business start-up and operation requirements by eliminating unnecessary and outdated formalities, making it faster and cost-effective to register and manage businesses in the future.
The EO signed on January 12, 2023, will turn the responsibility of the registrar to FIC.
Palau’s FIC is the financial regulatory and supervisory system body for the country.
It is also responsible for the licensing, supervision, and regulation of financial institutions.