The Cook Islands

The Cook Islands is a group of 15 islands situated in the South Pacific Ocean between Tahiti and Samoa.The legal system is based upon the principles of English common law and equity.

The official language is English.The local currency is the New Zealand dollar.

An International Company (as opposed to a Domestic Company) may not carry on business in the Cook Islands unless it has been registered under the Development Investment Act 1977.Such companies may carry out most business purposes with the following exceptions for which a special licence must be obtained:

-Accepting banking deposits,
-Accepting contracts of insurance or reinsurance,
-Carrying out trust business.
 

In February 2005, it was decided that the Cook Islands should be removed from the list of Non-Cooperative Countries and Territories as it is effectively implementing anti-money laundering measures.

In September 2000, the Cook Islands’ parliament passed the Money Laundering Prevention Act and has since put in place the Financial Transactions Reporting Act that requires full reporting on transfers and disclosure by companies, banks, trust accounts and insurance firms.

The legislation currently covers the following main points:

Capital

-There are no minimum or maximum capital requirements.
-Both par and no par value shares are allowed.
-Companies must have at least one shareholder.
-Bearer shares are permitted.
-Shares can be designated in all major currencies.
-Details of shareholders do not appear on a public file.
-Annual General Meetings are required although a written resolution signed by all  the members is also valid.Members meetings may be held outside the Cook  Islands.

Officers

-The minimum number of directors is one.
-Corporate directors are permitted.
-Directors need not be resident.
-A resident Secretary who must be an officer of a registered Cook Islands  trustee company is required.Additional secretaries may be appointed who do  not have to be resident.
-Annual returns must be filed.
-Companies must keep accounts, however, there is no audit (unless requested  by the shareholders) or filing requirement.

Incorporation

-Companies can usually be incorporated within one day.
-Shelf companies are available.
-A Cook Islands Resident Agent must be appointed and companies must have a  registered office address in the Cook Islands.
-There is no requirement to disclose beneficial ownership details.
-Cook Islands legislation allows for both inward and outward transfer of  corporate domicile.
-Certain words may not be included in a company name without prior  authorisation and/or licensing. Amongst these are: “Assurance”, “Bank”, “  Building Society”,“Chamber of Commerce”, “Chartered”, “Cooperative”,
 “Imperial”, “Insurance”, “Municipal”, “Royal”.

Taxation

-There is no taxation except for annual government fees.
-The Cook Islands are not party to any double taxation treaties.
-There are no exchange controls.

Useful links : Cook Islands Government - http://www.cook-islands.gov.ck

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