Language: English is the official language, and it is spoken by most of the Polynesian population.
Population: The population is approximately 19,000, and half of the people live on Rorotonga.
Political System: In 1901, the Cook Islands was ceded to New Zealand after Great Britain's protectorate over the islands since 1888. The Cook Islands became self-governing in 1965. Cook Islanders have retained New Zealand citizenship, which provides them with free access to New Zealand. However, there is no reciprocal agreement giving free access to the Cook Islands for New Zealand residents. New Zealand currency is used in the Islands.
Her Majesty the Queen has the executive authority, and the executive government lies with a Cabinet consisting of the prime minister and six other ministers who are appointed by him. There are two main political parties: the Democratic Party and the Cook Islands Party.
The Cook Islands is a member of the South Pacific Forum, the Economic Commission for Asia and the Pacific, and the Asian Development Bank.
Legal System: The legal system is based upon the principles of English Common Law. The highest court is the High Court of the Cook Islands, and appeals are made to the Cook Islands Court of Appeal and to the Privy Council in England.
Taxation: The Cook Islands is not part of any double-taxation agreements. Companies established within the offshore jurisdiction are exempt from any form of taxation, including stamp duties, capital issue tax, withholding tax and capital gains tax. The legislation provides a guarantee that the Crown will not compulsorily acquire or expropriate a company's property situated in the Cook Islands (except under specified circumstances defined by law).
Incorporation: The regulation of companies in the Cook Islands and their taxation status is dependent on whether they seek registration as domestic companies, under the Cook Islands Companies Act 1970-71, or as International Companies under the Cook Islands International Companies Act 1981-82.
A foreign company incorporated outside the Cook Islands may register under the International Companies Act 1981-82 or under the Companies Act 1970-71, if it has a place of business or is carrying on business within the Cook Islands. Registration under either Act does not exempt a foreign company from compliance with the requirements of registration under the Development Investment Act, if it is a "foreign enterprise" as defined under the Act.
Domestic Companies are incorporated under the provision of the Companies Act 1970-71. A domestic company that is a "foreign enterprise" under the provisions of the Development Investment Act 1977 may only carry on business in the Cook Islands if it is registered under the Act. A domestic company is not exempted from any income or other tax, excise or duty, and would normally be subject to income tax at the current rate of 20%.
International Companies: A company can be incorporated as an international company if its shareholders are non-residents of the Cook Islands. However, a trustee company registered under the Trustee Companies Act 1981-1982 can hold shares in an international company and may be the only shareholder.
An international company can be incorporated for any lawful purpose, other than that of a trustee company, but it is not allowed to carry on a banking or insurance business unless it is licensed under the relevant Act. Also, a company must register under the Development Investment Act 1977 in order to carry on a business in the Cook Islands.
The minimum number of directors is one, and it is not necessary to appoint a resident director. However, a resident secretary, who must be an officer of a registered trustee company, is required. Additional secretaries do not have to be residents.
There are no minimum capital requirements, and shares may be of no par value. Bearer shares may be issued, and registered shares that have been fully paid may be exchanged for bearer shares, unless this is prohibited by the company's Articles of Association. Shares can be designated in all major currencies.
Provision is made for bearer debentures, perpetual debentures, conversion of bearer to registered debentures and for the re-issue of redeemed debentures. There is also provision for voting rights of shareholders to be suspended while certain types of debentures are on issue.
All companies must keep annual returns together with audited accounts unless the members of the company (being a private company), at each Annual General Meeting, decide that auditors should not be appointed. Proper books and accounts must be maintained.
Annual General Meetings are required. In case an AGM is not held, written resolutions signed by all members of the company entitled to vote at an AGM must be passed in place of the meeting. If all members agree, an AGM does not have to take place in the Cook Islands.
Special Features: