Niue

Business Environment

Organisation for Economic Cooperation and Development

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Niue Commits to Co-operate with OECD to Address Harmful Tax Practices
15/04/2002 - The OECD is pleased to announce that Niue has made a commitment to improve the transparency of its tax and regulatory systems and establish effective exchange of information for tax matters with OECD countries by 31 December 2005.
Niue was among 35 jurisdictions identified by the OECD in June 2000 as meeting the technical criteria for being a tax haven. As a result of having made this commitment, Niue will not be included in the list of unco-operative tax havens to be issued shortly.
Niue will be invited to participate, together with the other committed jurisdictions and OECD Member countries, in the meetings of the OECD's Global Forum to discuss the design of standards for the implementation of these and any similar commitments. The OECD looks forward to working with Niue and encourages other jurisdictions to come forward with similar commitments.
The full text of the commitment will shortly be available on the OECD's website:
(see http://www.oecd.org/EN/document/0,,EN-document-103-nodirectorate-no-21-4...)
http://www.oecd.org/EN/document/0,,EN-document-0-nodirectorate-no-12-283...

As expected, the Niue Legislative Assembly has repealed laws which covered the issuing of banking licenses, paving the way for the Pacific island jurisdiction to be removed from the FATF's blacklist of jurisdictions which are said to be unco-operative in the fight against money-laundering. Niue was removed form the OECD's blacklist in April after signing a 'commitment' letter to the organisation.
Prior to elections in April, the outgoing government under Premier Sani Lakatana had stated that the offshore banking laws would go before parliament on March 7 to be repealed, in a bid to secure removal from the FATF blacklist, but the process was halted after a current bank license holder threat to sue the Government. Niue's Solicitor General, Togia Sioneholo said: 'We have some concerns with respect to some of the licences, and we have had to ensure that we don't place ourselves in a position where licence holders may bring actions against us.'
New Premier Young Vivian, elected in April, said that his top priorities were good governance, transparency and accountability. Niue now expects to receive substantial sums in promised overseas aid.

International Business Companies Act, 1994.
International Business Company. Submission by the Registered Agent of Memorandum and Articles of Association to the Companies Registry. cannot trade within Niue or own local real estate. Forbidden and licensable activities include: insurance agency and brokerage, fund management and asset management (other than the management of their own assets). They cannot solicit funds from the public or offer their shares to the public.
REGISTERED OFFICE REQUIREDYes, must be maintained in Niue at the address of a licensed management company.
DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIESNo.COMPLIANCE:AUTHORISED AND ISSUED SHARE CAPITALThe standard authorised share capital is US$ 10,000 divided in to 10,000 shares of US$ 1. The authorised share capital can be expressed in any currency, or in a mixture of currencies. The minimum issued capital is one share of no par value or one share of par value.CLASSES OF SHARES PERMITTEDRegistered shares, bearer shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights.BEARER SHARES PERMITTEDYes.
FINANCIAL STATEMENT REQUIREMENTSThere is no requirement to file financial statements. A company is required to keep financial records for the benefit of members.DIRECTORSThe minimum number of directors is one, who may be natural persons or bodies corporate, be of any nationality and need not be residents of Niue.COMPANY SECRETARYThe legislation does not refer to the office of company secretary although it is customary to appoint one to facilitate signing obligations.SHAREHOLDERSThe minimum number of shareholders is one.

TAXATIONAn IBC is exempted from local taxation.

Travel Information

Royal Tongan Airlines (WR) provides two weekly flights to Niue from Auckland, New Zealand and stopover in Tonga
The same goes for travel from IUE/AKL. Contact Royal Tongan Airlines for the flights from AKL
The following schedules have been provided by the Royal Tongan Airlines TBU and are subject to change
Please check with the Travel Agent in New Zealand and Australia for confirmation

http://www.flyroyaltongan.com/html/inter_tbuakl.html

Contacts

OFFICE OF THE PREMIER
Premier's Department - P O Box 40 - Niue Island
Tel (683) 4200 - Fax (683) 4206
Email: persec.premier@mail.gov.nu

GOVERNMENT OF NIUE
OFFICE OF THE PREMIER
PO Box 40 Alofi Niue Fax 4206 or 4344 Ph 4200

Information & Booking Centre
(Located at the Commercial Centre in Alofi)

PO Box 42
Alofi, Niue Island
Ph: (683) 4224 / 4394 / 1101
Fax: (683) 4225
Email: niuetourism@mail.gov.nu

Latest available figures

Country Information
Niue is located 2400 km north-east of New Zealand, on the eastern side of the International Dateline

Niue is a self-governing territory in free association with New Zealand. It is fully responsible for its own internal affairs, with New Zealand retaining responsibility for external affairs. Niue is a British Commonwealth Associate Member, and enjoys the protection of the British Crown.

The people of Niue enjoy dual citizenship, as an independent nation in free association with New Zealand. They are bilingual, speaking both Niuean and English and enjoy an independent lifestyle. With a population of only 1700, Niue remains very safe and very clean. When you visit Niue you will be made to feel very welcome - not just as a tourist

Niue, which is one of the world's largest coral islands, is located in the South Pacific Ocean, east of Tonga. The island has a total area of approximately 260 sq. km

Independence:on 19 October 1974, Niue became a self-governing parliamentary government in free association with New Zealand

elections: the monarch is hereditary; premier elected by the Legislative Assembly for a three-year term; election last held 19 March 1999 (next to be held NA March 2002)

Population

POPULATION

Under 2,300 people, 90% of which are of Polynesian descent. The other 10% of the population are made up of peoples of European and Tongan descent.

2,100 in 2000) with substantial emigration to New Zealand.

2,124 (July 2001 est.)

Capital
Alofi, is the administrative and commercial centre of Niue.

Currency
LANGUAGEPolynesian, but the official commercial language is English.CURRENCYThe currency of the financial centre is the US$.EXCHANGE CONTROLNone

Currency:New Zealand dollar (NZD)

Legal system
xommon Law based on the English system.

Government
Executive branch:chief of state: Queen ELIZABETH II (since 6 February 1952); the UK and New Zealand are represented by New Zealand High Commissioner John BRYAN (since NA May 2000)
Dependency status:self-governing in free association with New Zealand; Niue fully responsible for internal affairs; New Zealand retains responsibility for external affairs
Government type:self-governing parliamentary democracy

The Niue Assembly comprised 20 members, 14 of which are elected by local constituencies and six by common roll. The Head of Government is the Premier who is elected by the Assembly. The Premier chooses the Cabinet, which consists of the Premier and three other Ministers.

elections: the monarch is hereditary; premier elected by the Legislative Assembly for a three-year term;

but there are 14 villages each with its own village council whose members are elected and serve three-year terms

The Assembly has 20 members, 6 elected on a common roll and 14 representatives of the villages.

Government is formed by NPP and non-partisans.

Niue Premier Young Viviani

Niue’s premier, Young Vivian, has taken over the island’s tourism portfolio

Finance Minister, Toke Talagi

Premier: Hon. Young Vivian
Ministers: Hon. Toke Talagi
Hon. Bill Vakaafi
Hon. Sani Lakatani

Peleni Talagi - (Attorney Generals Office) responsible for offshores
business Phone: 4228

Niue's voters returned all sitting members of the 20-seat legislative assembly in elections held on 20 April. Parliament will convene on 26 April to vote for a premier. As there is no clear winner, Sani Lakatani, leader of the Niue People's Action Party, will seek re-election for the post against Frank Lui of the Alliance of Independents party.

Election Results: In a close fought battle at the polls today all sitting members were returned to the Legislative Assembly. Provisional results are: Common roll members Toke Talagi ( (445), Sani Lakatani (428), Terry Coe (426), Michael Jackson (400), Hunukitama Hunuki (393) O'Love Jacobsen (370). The next highest pollers were Atapana Siakimotu and Steve McCoy. Village constituencies: Returned unopposed:- Avatele- Billy Talagi; Vaiea-Talititama Taliti; Hakupu-Young Vivian; Mutalau- Bill Vakaafi; Hikutavake -Opili Talafasi; Namukulu - Jack Willie; Makefu-Tofua Puletama; Alofi North - a'ainga Tukuitonga.
Elected - winners first: Alofi South Robert Rex jr (113), Makamau Hekau (88); Tamakautoga - Peter Funaki (45), Taso Tukuniu (40);Toi- Dion Taufitu (10), Lilivika Muimatagi (8 ); Tuapa- Fisa Pihiga (53), Henry Eveni (20); Lakepa- John Operator Siakia (29), Talitama Magatogia (20); Liku - Pokotoa Sipeli (24), Nogimoka Poumale (15).
Toke Talagi captured the most island-wide votes while former top poller O'Love Jacobsen struggled to hold sixth placing.The island's leadership now remains in the balance. Political commentators predict Young Vivian fronts up favourite following a split in the ranks of the Niue Peoples Party which could see Sani Lakatani on the sideline.The Assembly meets Friday April 26 to swear in the members and elect a new Speaker and Premier. Full common roll results posted tomorrow.

Parties

There's been disruption and especially in the Niue's Peoples Party mainly on the basis that they were returned to power on a manifesto of increasing welfare benefits, grants to churches, grants to village councils and so on. And then when in fact they took over they found that there was no money in the kitty, and so can't fulfill those promises. That caused consternation amongst a number of party MPs and some of those didn't vote for the budget to go through its first reading. So there is some disruption there. There is a little bit of friction in the alliance of independents, mainly over a leadership struggle but I think in six months you'll probably see Niue with a group of 20 independent MPs rather than a party system."

Elections

election last held 19 March 1999 (next to be held NA March 2002)
election results: Sani LAKATANI elected premier; percent of Legislative Assembly vote - NA%

Premier: Young Vivian (2002) NPP
Government is formed by NPP and non-partisans.
Parliament:
The results of the last elections, 21 april 2002, are not available. 6 members are non-partisans and 14 members supported the candidate of the Niue People's Party.
Other resources:
CIA World Fact Book
Political Resources on the Net Governments on the WWW Yahoo! Government

Mr. Vivian defeated an Alliance of Independents nominee for Premier, Hunukitama Hunuki, by 14 votes to six.

Economic overview
Most Niueans work on family plantations. Other sources of employment include the Government, the financial sector, tourism and small industry.The economy of Niue is heavily dependent on aid from New Zealand. Government expenditure regularly exceeds revenue, with the shortfall made up by grants from New Zealand. The grants are used to pay wages to public employees.The Agricultural sector consists mainly of subsistence gardening, although some cash crops are grown for export. Industry consists primarily of small factories to process passion fruit, lime oil, honey and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue.In recent years, the Island has suffered a serious loss of population caused by the migration of Niueans to New Zealand.

This free-association gave Niueans automatic New Zealand citizenship status. It resulted in mass migration by Niueans to New Zealand. Some parents thought that by becoming Self-Governing, the next move would be Independence and the citizenship status would be lost.

New Zealand provides NZ$ 6.5 million (US$ 2,991,350) in annual assistance through recurrent budget support and special project funding.

Gross domestic product

Labour force

Government accounts (2001)
Fiscal year:1 April - 31 March

Public holidays (2002)
1 January (New Year's day), 2 January (holiday); 6 February (Waitangi day - marking New Zealand's independence from the UK); 29 March (Good Friday); 31 March (Easter); 1 April (Easter Monday); 25 April (Anzac day); 3rd Monday in June (Queen’s Birthday) ; 19 October (Constitution celebrations); fourth Monday in October (Labour day); 25 December (Christmas ); 26 December (Boxing day).

Time zone
GMT -11 hours. There is no summer time clock change.

Sources
Government of Anguilla
Acorn (Anguilla Online Registry)
Eastern Caribbean Central Bank
Elections Around the World
CIA Fact Book
Holiday Festival

Links

Government of Niue
Niue Tourism Office
Niue News