Doing Business in Tonga
The Government of Tonga welcomes foreign investment, and governs it through these key pieces of legislation:
- The Foreign Investment Act 2002 and Foreign Investment Regulations 2006
- The Companies Act 1995
- The Business Licenses Act 2002 and Business Licenses Regulations 2007
You can get copies of these Acts from the Tonga Trade and Investment Division at the Ministry of Labour, Commerce and Industries (MLCI).
Foreign Investors need to study certain business activities that are (1) Reserved for local Tongan citizens, (2) have Restrictions placed upon foreigners, or (3) are Prohibited to Tongans and Foreigners alike.
***********************************************************************************************************************SCHEDULE 1
(Regulation 3)
RESERVED LIST
1. Taxis
2. Passenger vehicles for hire
3. Used motor vechicle dealers
4. Retailing activity which consists of the distribution of grocery products (food & household provisions) for final consumption.
5. Wholesaling activity
6. Baking of white loaf bread
7. Tongan cultural activities, including:
a. Folktales, folk poetry, and folk riddles;
b. Folk songs and instrumental, fold music;
c. Folk dances, and folk plays;
d. Production of folk arts in particular, drawings, paintings, carvings, sculptures, woodwork, jewelery, handicrafts, costumes, and indigenous textile.
8. Raising of chicken for the production of eggs
9. security business
10. export of green and mature coconuts
11. wiring and installation of residential and commercial buildings with capital investment of less than $500,000
12. Production / Farming of:
a. Root crops (yam, taro, sweet potato, cassava);
b. Squash;
c. Paper mulberry;
d. Pandanus; and
e. kava
13. Fishing activities comprising:
a. Reef Fishing
b. Inshore fishing within 12nm (Zone C) in water less than 1000 meters
c. Bottom fishing in water depth less than 500 m
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SCHEDULE 2
(Regulation 4)
RESTRICTED LIST
|
No. |
Business activity |
Condition |
|
1. 2. 3. 4. |
Commercial fishing comprising: - Tuna fishing - Bottom fishing in water deeper than 500m - Other deep water fishing not less than 100 m - Aquaculture Agricultural supply store distributing seeds, fertilizers, chemicals. Education facility Medical or Health activity |
Subject to their respective Resource Management Plan (administered by the Ministry of Fisheries) Subject to the requirements of the Pesticide Act 2002 Subject to requirements of the Education Act (Cap.86) Subject to the requirements of the Public Health Act 1992; Therapeutic Goods Act 2001; Nursing Act 2001; Medical and Dental Practices Act 2001; Pharmacy Act 2001; Health Practitioners Review Act 2001. |
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SCHEDULE 1
(Section 3)
PROHIBITED ACTIVITIES
1. Storage, disposal or transport of nuclear or toxic waste
2. Pornography
3. Export, Import or production of any products that are prohibited under the Laws of Tonga
4. Prostitution
5. Processing or export of endangered species
6. Production of weapons of warfare
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How to Invest in Tonga - STEPS
A foreign investor needs to apply for and obtain approval from the following agencies before commencing business:
- Ministry of Labour, Commerce
and Industries for;
- Registration for Foreign Investment Registration Certificate (FIC)
- Registration of Company and Reserve Company name
- Registration for Business License (BL)
- Department of Immigration for Work Permits or Business Visa
RELATED ARTICLES:
- Obtaining a Business Licence in Tonga
- Foreign Investment Certificate
- Company Registration
- Visa, Business and Employment
