Kosrae State Government
Department of Resources and Economic Affairs
Getting Started
Policy Documents and Resources
Conducting business on Kosrae is similar to operating a business in the US because federal and state business laws have been modeled after those in the US. 
 
Businesses may operate as sole proprietorships, partnerships or corporations. Whatever its form, our laws do not require local citizens to share in the ownership of the business if a foreign investor prefers 100% ownership. The preferred approach, however, is for outside investors to enter into joint ventures with local partners. Foreign investment permit regulations, for example, require that consideration be given during the review process to the extent of local ownership in the business. 
 
The reality of the situation is that participation of a local citizen partner will, in all but the most unusual situations, be beneficial to the outside investor. 
 
The Kosrae State Government will assist investors in identifying prospective local citizen partners, although you are also free to do so on your own. 
 
Investors who choose to manage their investments on Kosrae will need foreign investment permits to reside in the country for the duration of their investment. If ownership in the business is 20% or less, such an investor is required to secure work permits.
Application Process
DREA will assist in the processing of your foreign investment application with all relevant departments and agencies.

Processing of foreign investment applications start once the application form is filed with DREA. The director by law has a maximum of 15 days to complete the review of each permit application, but a new 15 day may be required if the director lacks needed additional information.

A non-refundable filing fee of $150 USD must accompany your application at the time of filing. There is no annual renewal fee.

For more information, you may contact DREA via the following information below. We also have a contact form available on this website for your convenience.

Office Hours: Monday to Thursday, 8 AM - 3 PM, Friday, 8 AM - 2:30 PM
Telephone: (691) 370-2044
Fax: (691) 370-2006
Email:  info@investkosrae.fm
          sraffilman@investkosrae.fm
          emike@investkosrae.fm