Thousands of islands and several nations make up Micronesia, which is situated in the Pacific Ocean northeast of Australia. The Federated States of Micronesia, one of these nations, is also referred to as “Micronesia”.
The Oceanian nation of Oceania is made up of 607 islands collectively known as the Federated States of Micronesia. These islands span a huge amount of water—more than 2,600,000 km2—in their entirety (1,003,866 mi2).
Even though Micronesia is home to hundreds of islands, only 65 of them are populated.
The nation does not receive as many tourists as others, although the region’s tourist attractions are among the most fascinating in the world. The nation has a lot to offer, including world-class diving, historic cultures, and stunning landscapes.
The islands, lagoons, and atolls of the country are also rather diverse. In some areas, the ground is steep and mountainous, while in others, the coral islands are essentially flat.
How to get to Micronesia
Four states make up the Federated States of Micronesia: Chuuk (formerly known as Truk Lagoon), Kosrae, Pohnpei, and the island of Yap. The principal airport for travel to Micronesia is Pohnpei International Airport. It is situated on Pohnpei Island, close to Palikir, the country’s capital.
Getting to Micronesia can be a little challenging due to the few aircraft available and the sparse tourist traffic on these Pacific islands. Depending on where you wish to travel, flight trajectories change. Chuuk and Guam may be reached by direct flights from Brisbane and Cairns, respectively, but if you’re flying from Sydney, be ready to make a few transfers.
Revenue from tourism
7.6 percent of the nation’s total domestic product, or 15.80 million USD, was generated through tourism in 1997. This was roughly equivalent to 17,200.00 visitors at the time, or 919 USD per person. The nation is now significantly more dependent on tourism than it was 18 years ago. Sales were $25.00 billion, or 7.9 percent of the GDP, before the COVID-19 pandemic’s breakout. As a result, each visitor to Micronesia spent $801 on average throughout their stay.
Micronesia’s legal requirements for starting a business
Starting a business is not as easy as it sounds in Micronesia. To launch a business in the nation, a variety of distinct legislative conditions must be satisfied.
Getting a company license from the appropriate government agency is the first step. You must be given all the relevant details about the business, including its goals and dimensions, in this license.
The government will then demand a copy of your business plan, which you must prepare next. Your company plan will be outlined in this document, along with your revenue-generating plan.
Finally, you’ll need to enlist the aid of your bank or another financial institution. You can use this money to start your firm, pay your staff, and keep track of your financial records.
Challenges of starting a business in Micronesia
Every business owner will encounter a few difficulties. The absence of infrastructure and resources for businesses is at the top of the list. Additionally, launching a business in this area can be difficult due to a lack of infrastructure and knowledge. Finally, the weather might make it challenging to work because it frequently drops below freezing in the winter and is quite hot in the summer.
Despite these difficulties, Micronesia is a desirable location to launch a business. The nation has a lot to offer businesspeople due to its historical significance and abundant natural resources.
The tax implications of starting a business in Micronesia
It can be a thrilling and rewarding experience to launch a business in Micronesia, but there are some important tax consequences to take into account. The government in the nation of residence must first receive a report from the Micronesian business owner detailing their net income and business expenses. This might be a challenging task because many local taxes may not be governed by international standards.
