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Nauru in the South Pacific Basin is one of the world's tiniest nations with a total land area of just over 8 square miles. This South Sea island was first visited by Captain John Fearn of the whaler 'Hunter' in 1978, who called it 'Pleasant Island'.
The country used to enjoy the world's highest income per capita. But after long decades of Australia's exhaustion of phosphates in the country, Nauru is now on the verge of insolvency. Land tenure in Nauru is one of the most basic problems that foreigners face when investing the country. Establishing ownership of land in Nauru has been a problem of the Nauruan nationals themselves. Problems arise because of undocumented land titles due to verbal agreements between parties when inheriting land.
In addition to the land problem, Nauru has a relatively limited land mass and it suffers from a high population density, which is expected to rise. Nauru's government has never made much of an effort to promote Nauru's no tax haven status. Press enquiries are never answered, visas are virtually unobtainable, and foreigners can't purchase land. Transportation services are horrible. Approximately 18 banks, one hotel and one insurance company service the island.
Nauru enacted corporation and trust laws in 1972 to make itself attractive as a modern financial center. Incorporation costs about $900 company in good standing. Nauru trusts and companies can be used to hold land overseas, manage stock portfolios, and avoid inheritance and estate duties. There are probably only a few hundred companies registered in Nauru at this writing.
Nauru is one of the few tax havens that allow corporations to move in or out without dissolution. A corporation organized anywhere can change its domicile to Nauru by notifying the Nauru Registrar of Corporations that the original jurisdiction permits the transfer.
By: Shabina Sanad
GOWEALTHY.COM © 2008
For comments: editor@gowealthy.com
