SOLOMON ISLANDS INVESTMENT SERVICES
S.I.I.S
ABOUT US
SOLOMON ISLANDS INVESTMENT SERVICES
Your Investment Partner
Solomon Islands Investment Services is a project management and risk management firm specializing in real estate and investment in the Solomon Islands. Our team draws on over 20 years experience in the Solomon Islands and collaborates closely with industry leaders to bring the technical expertise you need to your project.
Our services have many applications across multiple industries including: tourism, real estate, property development, agriculture and mining.
We are more than a consultancy firm and will work alongside you to ensure that you have the local knowledge to support your investment strategy.
ABOUT
THE SOLOMON ISLANDS
BACKGROUND
The Solomon Islands is located to the north east of Australia, about three hours flight from Brisbane and just to the east of Papua New Guinea.
You can travel to the Solomon Islands via Brisbane with Solomon Air or from Port Moresby with Air Niugini. Visitors will receive a tourist visa valid for 90 days on arrival at the airport. The climate is tropical, with high humidity with temperatures averaging about 30 degrees celsius all year round with regular rainfall.
The people of the Solomon Islands are predominantly Melanesian with smaller minorities of Polynesian and Micronesian people. The traditional tribal customs remain strong and are still practiced throughout society. The Solomon Islands population of 684,000 is sparsely located with the largest urban population being the capital, Honiara with 82,000 people. The majority of people live in rural villages surviving of sustenance farming and fishing.
ECONOMY
All major economic data can be found on the Solomon Island’s Central Bank’s website here.
In 2019 the GDP of Solomon Islands was $1.43 billion USD per annum with a GDP per capita of $2,338 USD. There is large wealth inequality in the Solomon Islands with the minimum wage of $8 SBD per hour or approximately $1USD per hour. The Solomon Islands major exports are copra, cocoa, fisheries and logging.
There are major investment opportunities in the development of critical infrastructure, agriculture, tourism and manufacturing. The Solomon Islands Government has a number of incentives available for investment in tourism which can be found here.
LAND OWNERSHIP
The majority of the land in the Solomon Islands is considered to be under customary ownership which means that the traditional tribal groups still maintain joint ownership of the land. The registration of customary land is a complicated process requiring a genealogy study and a deep understanding of customary laws to identify land owners so that negotiations can commence. Solomon Islands Investment Services is highly familiar with the process and can help you to identify and negotiate access to customary land.
In order for a foreigner to use the land it must first be registered as a Perpetual Estate so that a Fixed Term Estate Title can be registered for a foreigner’s use. Foreign Investors can only own a Fixed Term Estate (FTE) of a local’s Perpetual Estate (PE) title, usually for a period of 75 years. This is a legal title governed by the Solomon Islands Lands and Titles Act 1996, that usually has a principle payment and a small yearly rental payment. FTE’s can only be held by a foreigner’s company and can be bought and sold like any other asset. FTE’s are not automatically renewed after sale but can be renewed through mutual agreement with the PE holder. FTE’s are registered land and can therefore be used as collateral for banking and finance purposes.
POLITICAL AND JUDICIAL SYSTEM
The Solomon Islands was previously a British colony and remains a part of the Commonwealth. They have a Westminster system of government and division of powers.
In late 2019 the Solomon Islands split from Taiwan in favor of diplomatic recognition of China and have since been in the process of establishing bilateral relations. Australia and New Zealand aid has helped shape government policy for the last 20 years and there remain close political and commercial ties to these countries. The Australian Government provides extensive investment into healthcare, education, infrastructure and policing and is the largest donner partner to the Solomon Islands.
TAXATION
The Solomon Islands taxation department is called the Solomon Islands Inland Revenue Division (IRD). There are a number of resources listed on their website that provide a thorough explanation of the taxation regime, you can find them here.
The Solomon Islands Government charges 30% income tax for locally registered companies and 35% for foreign registered companies. Sales tax sits at 10% however import tax and duty rates are known to fluctuate so we recommend engaging a registered broker. Export duty is charged on various land and marine fauna shells, gold and other minerals, scrap metal, logs and lumber, fish and various agricultural products.
Solomon Islands Investment Services has vetted and can recommend accounting and freight forwarder services that will ensure you are equipped with the best advice.
COMMUNICATIONS AND LOGISTICS
The two main telecommunications providers in the Solomon Islands are Telekom and B Mobile. These companies provide 4G services in Honiara and 3G or 2G in most rural population centers. Beyond rural population centers telecommunication coverage is intermittent unless using satellite-based telecommunications.
You can buy a sim card for either provider at most general stores which will allow you to make calls immediately, however you will need to visit the head offices of either provider in order to activate your sim card to access the internet. Alternatively, you can pick up a SIM card at the provider's stores at the Honiara International Airport and they can activate your SIM card there. Phone credit is purchased in a ‘top up’ system rather than a plan and you can credit your phone at most general stores in the country. You can find more information on the top up system for Telekom here and B Mobile here.
The Solomon Islands has two international airports, one in Honiara and the other in Munda, Western Province. There are domestic flights to all 9 provinces either by Solomon Air’s commercial flights or by private charter.
There are two international seaports, one in Honiara and the other in Noro, Western Province. Domestic shipping services provide both cargo and passenger transport services across all provinces.
HEALTHCARE
The Solomon Islands has two major hospitals in Honiara and Gizo that can provide general healthcare and emergency treatment.
St Johns Ambulance Service provides high quality emergency response for medical emergencies in Honiara, Guadalcanal and Western Province.
St John’s Ambulance Service can be contacted on 111 for emergencies.
Foreign investors are advised to purchase travel and medivac insurance if they travel to the Solomon Islands and ensure they are well prepared if they are traveling into the provinces. If traveling by small craft boat, storms can move quickly so it is important to ensure you have life jackets, radios and e-perps on board.
REGISTERING YOUR FOREIGN INVESTMENT
To start your investment in the Solomon Islands you must first make an online application to register your foreign investment to the Foreign Investment Board here. Your application will include listing the business activities you wish to engage in which is supported by your business case and proof that you can finance your investment.
Once you gain approval from the Foreign Investment Board you can register your business at Company Haus where you incorporate the company and identify shareholding and directorships. Registering your investment at Company Haus will make you a local company for tax purposes meaning that you will be charged 30% income tax rather than 35% for foreign registered companies.
It is important that you are transparent with your Foreign Investment application because the business activities that you list for your business will be the business activities that your company and employees are limited to. Engaging in activities outside of your foreign investment approval can breach your work permit and may ultimately result in the cancellation of your Foreign Investment Approval if breaches persist. You can always apply to extend the scope of your business activities by reapplying to the Foreign Investment Board to update your details.
Solomon Islands Investment Services is highly familiar with the process and can help you to register your business and ensure that you are fully complaint with all relevant legislation.
WORK PERMITS AND RESIDENCY VISAS
When you initially enter the Solomon Islands it will most likely enter with a tourist visa which is automatically given to most nationals when they arrive in the Solomon Islands. A tourist visa is valid for 90 days and allows you to travel around the Solomon Islands but does not allow you to work or conduct business.
In order to work or conduct business you must have a work permit and a residency visa. There are two types of work permit, one for employees and one for business owners. Employees are required to submit copies of their employment contracts and CVs while business owners can submit their foreign investment and incorporation certificates from Company Haus. The full process and application forms can be found here on the Ministry of Commerce, Industry, Labor and Immigration website.
You can apply for a residency and work visa for up to two years before you must go through the process again for renewal. There are a number of identifying document you must provide and the entire process can take about three months. Solomon Islands Investment Services can save you time and money by handling your application even while you are overseas.