DILI, 23 june 2022 (TATOLI)– More than 22 Companies in Timor-Leste are closing their businesses due to lost revenue, Executive Director of Business Registration and Verification Services (SERVE, IP), Florêncio Sanches said.
Sanches explained, that the companies decided to close their business because there was no revenue from January to June this year.
“The 22 companies consist of two national companies and 20 international companies. The reason these companies decided to close their businesses was that they lost revenue and could not afford other costs such as electricity, space, water, and staff salaries. ,” said Sanches.
Sanches admits that every year around 100 companies close their businesses, saying after this situation, the government has set up 50 million USD through ‘soft credits’ to support companies running their businesses.
“Currently the Government has prepared 50 million USD through soft loans for companies to run their business and now many companies have decided to keep their companies,” he said.
According to Sanchez, the credit will only be offered to companies that have a certificate from SERVE and a proper business plan, including a map design and business address.
Sanches also informed that currently SERVE has registered 38,000 companies. 90% are national companies and 4000 companies are owned by foreigners.
“There are many national companies but the majority of these companies only have limited capital but SERVE still recognizes their companies because they donate 10% of their income to state taxes,” said Sanches.
So far, the 20 international companies operate in various sectors such as tourism, agriculture, and others.
Journalist: José Belarmino De Sá
Editor: Nelia B
