Foreign Affairs

According tot he 1977 The Entry, Residence and Departure Act, anyone other than a Cook Islands citizen or permanent resident who wishes to live and work on the Islands must first obtain a work and residence permit. It is possible to apply for a work and residence permit online.

The Cook Islands have little formal unemployment and a shortage of skilled and qualified workers in both the public and business/private sectors. Foreign investor may recruit employees from overseas when it is not possible to find qualified local persons to fill a position.

A passport, proof of sufficient funds, and an onward or return ticket are required for a short-term stay. Many nationals wishing only to stay up to 31 days do not need to apply for a Visa.

The World of Business

Offshore companies are not required to obtain a business license to operate in the Cook Islands although domestic operations are required to obtain one. The government has restricted certain domestic activities to Cook Islanders.

If a business entity is not specifically exempted, it is necessary to obtain approval from the government and to register planned activities before setting up commercial operations in the Cook Islands.

A foreign enterprise is defined by law as any business where more than one third of the total equity is owned by foreigners. Under the investment code, joint ventures with the participation of Cook Islanders is strong encouraged but not required in cases where such a joint venture is an impractical proposition.

Foreigners are allowed to lease land for a period not exceeding five years without obtaining special permission. Foreigners wanting to lease real estate for longer periods of time must get approval from a government committee that was set up under the Leases Restrictions Act of 1976. Foreigners are forbidden from leasing land for over 60 years and from owning a freehold. This act defines a foreigner as any person who is not a citizen of the Cook Islands or a permanent resident.

The Cook Islands prides itself on strict confidentially in the financial sector as such offshore registries may not be searched by the general public. One must provide the register with a persuasive, rational, and convincing reason such as fraud before being allowed to search offshore registries. According to the International Trusts Act of 1984, it is necessary to register the creation of an internal trust nevertheless the registration requirements do not include disclosing the names or details of the beneficiaries or settlor of the provisions of a copy of the dead of trust that set out the terms under which property was settled to the registry. Similarly, under the International Companies Act of 1981, companies do not have to file the details of the beneficial owners at any time, including at the date of incorporation or in subsequent annual returns.

If government officials or bank, insurance company, trust & corporate entity employees fail to observe secrecy and failure to do so resulting in an unauthorized disclosure will lead to penal sanctions. There are a few exceptions if criminal activity is involved provided it does not include fiscal crime.

Effective on the 1st of July 2006, the government lifted most the import levies, although pork, fresh fruit and vegetables, pearls and soft drinks were added to the original \'big four\' list of exceptions - motor vehicles, liquor, tobacco and fuel – to sooth fears that the move would have too big an impact on government revenues. However, on the 1st of July 2008 import duties on the items added to the list will be cut in half.

The government of the Cook Islands has not placed any controls on the exchange of foreign capital.

The Cook Islands’ Monetary board is responsible for administering The Development Investment Act of 1977, which is considered to be the foundation for all incentives and concessions. Under the Act, all foreign enterprises are required to apply to the Monetary Board, in effect the Cook Islands’ Cabinet, to establish a new business. In an Investment Code that lists the areas in which investment is restricted and those in which it is encouraged was published.

In general, foreign inward investment is encouraged. If the government believes that the investments will contribute significantly to the Cook Islands’ development, incentives and concessions are available for foreign investment. The following is an incomplete list of possible incentives and concessions.

• the imposition of tariffs on competing imports;

• tax relief by way of an accelerated depreciation allowance on capital goods;

• work permits;

• tax concessions;

• exemptions from customs duty and import levy;

• permission to lease land;

• training incentives, including allowances for the training and recruitment of Cook Islanders who are living abroad.