Question 1

Can a foreign company operate in Solomon Islands?

Accepted Answer

Yes. Foreign companies can establish and operate businesses in Solomon Islands, although the applicable legal and regulatory requirements will depend on the nature of the proposed investment and the industry involved. Foreign investors may choose to incorporate a local subsidiary, register an overseas company, or establish a joint venture with local partners. Certain sectors are reserved for Solomon Islands citizens or require specific government approvals before investment can proceed. Successful market entry also requires consideration of company registration, taxation, employment obligations, licensing requirements, banking arrangements and, where relevant, land tenure and environmental approvals. Understanding these requirements at an early stage helps reduce delays and regulatory risk. PALS regularly assists international investors with establishing operations in Solomon Islands, providing practical advice on investment structuring, regulatory compliance, commercial contracts and ongoing legal obligations.

Question 2

How do I establish a business in Solomon Islands?

Accepted Answer

Establishing a business in Solomon Islands generally involves selecting an appropriate business structure, obtaining foreign investment approvals, registering the company, obtaining any sector-specific licences, and meeting tax and employment obligations. You may also need a business licence from the relevant municipal council. Depending on the nature of the investment, businesses may also need to secure suitable premises or land rights, establish local banking arrangements and comply with environmental or industry-specific regulations. For international investors, the process often extends beyond incorporation. Careful planning of ownership structures, shareholder arrangements, financing, governance and regulatory compliance can significantly improve the long-term success of the investment.PALS assists clients throughout the entire establishment process, from obtaining foreign investment approval, selecting the appropriate legal structure through to incorporation, commercial documentation, government approvals and ongoing corporate governance

Question 3

What approvals are required for foreign investment?

Accepted Answer

Most foreign investments require approval under Solomon Islands' foreign investment framework before business activities commence. Additional approvals may also be required from sector regulators, provincial authorities or environmental agencies depending on the project. Industries such as mining, fisheries, telecommunications, financial services, infrastructure and energy often involve additional licensing and regulatory requirements. Projects involving government contracts or public infrastructure may also require procurement approvals or concession arrangements.Obtaining the necessary approvals early in the investment process helps minimise delays and ensures compliance with Solomon Islands law. PALS regularly advises investors on regulatory requirements, government approvals and investment structuring across a wide range of industries.

Question 4

Can foreign companies lease or acquire land?

Accepted Answer

Land ownership in Solomon Islands differs significantly from many other jurisdictions and is an important consideration for foreign investors. While freehold land is limited, foreign companies may be able to obtain interests in land through lease arrangements or other legally recognised tenure arrangements, subject to applicable legislation and government requirements. Approximately 87% of land in Solomon Islands is customary land, meaning it is held by customary landowners under traditional ownership systems. Projects involving customary land require careful consultation, due diligence and appropriate legal documentation to ensure agreements are valid and sustainable.Understanding land tenure is often one of the most important aspects of a successful investment. PALS advises international investors on land due diligence, lease arrangements, customary land negotiations and the legal risks associated with property acquisition and development.

Question 5

How long does company registration take?

Accepted Answer

The timeframe for company registration depends on the complexity of the proposed business and whether additional regulatory approvals are required. Straightforward incorporations can often be completed relatively quickly once all required documentation has been prepared and submitted. However, foreign investments requiring government approvals, specialised licences or complex ownership structures will generally take longer.Preparation is often the most important factor affecting timing. Ensuring shareholder information, constitutional documents and regulatory applications are complete from the outset can significantly reduce delays. PALS manages the incorporation process from start to finish, coordinating registrations, preparing corporate documents and assisting clients with related regulatory requirements to help establish businesses as efficiently as possible.

Question 6

How are commercial disputes resolved?

Accepted Answer

Commercial disputes in Solomon Islands may be resolved through negotiation, mediation, arbitration or litigation, depending on the terms of the parties' agreements and the nature of the dispute. Many commercial contracts include dispute resolution provisions specifying the governing law, jurisdiction or arbitration procedures that will apply if disagreements arise.Early legal advice often helps businesses resolve disputes before formal proceedings become necessary. Where litigation cannot be avoided, experienced local representation is essential to navigate the unique court procedures and regulatory requirements of Solomon Islands. PALS advises clients on dispute avoidance strategies, contract enforcement, commercial litigation, debt recovery and alternative dispute resolution. Our objective is always to achieve commercially practical outcomes while protecting our clients' legal and commercial interests.

Question 7

Why use local legal advisers?

Accepted Answer

Local legal knowledge is critical when investing in Solomon Islands. While international legal advisers provide valuable strategic guidance, local counsel understand the regulatory environment, government processes, customary land systems, commercial practices and practical considerations that influence successful transactions. Many projects involve multiple government agencies, local stakeholders and regulatory approvals. Experienced local advisers can identify potential issues early, assist with negotiations and help ensure compliance throughout the project lifecycle.As one of Solomon Islands' leading commercial law firms and a member of Pacific Legal Network, PALS combines deep local expertise with access to regional legal capability across the Pacific, providing clients with practical advice tailored to complex cross-border transactions.

Question 8

Can PALS coordinate advice across multiple Pacific countries?

Accepted Answer

Yes. Through its membership of Pacific Legal Network, PALS can coordinate legal advice across multiple Pacific jurisdictions through a single point of contact. This enables clients undertaking regional investments or operations to receive consistent legal advice while benefiting from local expertise in each jurisdiction. Many projects involving infrastructure, banking, telecommunications, renewable energy, mining and development finance span several Pacific countries. Coordinating separate legal advisers in each jurisdiction can be complex and inefficient.Pacific Legal Network provides an integrated approach, allowing clients to manage regional legal requirements through experienced local lawyers supported by a coordinated cross-border team. This reduces duplication, improves communication and helps ensure consistent legal strategies across the Pacific.

Question 9

Do you advise governments and development organisations?

Accepted Answer

Yes. PALS has extensive experience advising governments, development finance institutions, multilateral organisations and international development partners throughout Solomon Islands and the Pacific region. Our work includes legislative drafting, regulatory reform, governance, infrastructure projects, institutional strengthening, procurement and investment facilitation. Through Pacific Legal Network, our team has advised governments, international financial institutions and donor-funded projects on a wide range of legal and regulatory matters, combining international best practice with practical local knowledge.We understand the governance, accountability and stakeholder engagement requirements that accompany public sector and development projects and work collaboratively with government agencies and development partners to deliver practical, sustainable legal solutions.

Question 10

How does customary land affect projects?

Accepted Answer

Customary land is central to many investment projects in Solomon Islands. Because the majority of land is held under customary ownership, investors must carefully consider land rights during project planning, particularly for mining, infrastructure, agriculture, tourism and renewable energy developments. Negotiating with customary landowners requires a thorough understanding of local legal frameworks, traditional ownership structures and community engagement processes. Proper due diligence and well-drafted agreements are essential to minimise future disputes and provide long-term certainty for investors. PALS regularly advises clients on customary land issues, lease arrangements, landowner negotiations and project structuring to help ensure investments are legally secure and commercially sustainable.

Question 11

How can local counsel help international investors?

Accepted Answer

Local legal advisers provide far more than regulatory advice, they help investors understand how business is conducted in practice. Successful investments require navigating government processes, understanding local commercial customs, managing stakeholder relationships and identifying potential legal risks before they affect project timelines or costs. Local counsel can coordinate regulatory approvals, conduct legal due diligence, negotiate commercial agreements, advise on employment and taxation issues, and assist with land access and environmental compliance. They also provide valuable insights into the practical operation of Solomon Islands' legal and regulatory environment. PALS combines local knowledge with regional capability through Pacific Legal Network, allowing international investors to access coordinated legal support for both Solomon Islands and broader Pacific investments. This integrated approach helps clients establish, grow and protect their investments with confidence.

Frequently Asked Questions