CNMI 2013 business resource guide

A publication by the CNMI Department of Commerce’s CNMI Small Business Development Center & Commonwealth Development Authority

Table of Contents CNMI Business Resource Guide CHAPTER 6 – ADMINISTERING EMPLOYEES ...... 33 Chapter 1 – ABOUT THE CNMI ...... 1 Complying with Equal Employment Opportunity Laws ...... 33 Chapter 2 - BUSINESS PLANNING . . . . 5 Complying with Employee Safety and Health Protection Laws ...... 33 Introduction ...... 5 Establishing Wages and Hours . . . . . 34 SAMPLE BUSINESS PLAN OUTLINE . . . . 5 Complying with the Workers’ Compensation Insurance Law ...... 34 Chapter 3- DEFINING AND REGISTERING Finding Employees ...... 35 BUSINESS ENTITIES ...... 9 Foreign Workers ...... 35 Introduction ...... 9 Providing Employee Benefits ...... 36 Obtaining A Business License . . . . . 11 Filing Employment Taxes ...... 37 Special Licenses ...... 11 License Fees ...... 11 Chapter 7 - PHYSICALLY SETTING UP AN OFFICE Obtaining Special Licenses/Certificates . . 12 OR FACILITY ...... 39 Banking and Insurance Licenses . . . . . 14 Leasing Land ...... 39 Environmental Health ...... 17 Complying with the Building Safe Code . . 39 Gaming and Amusement operation Licenses18 Complying with Public Accommodations Professional Licenses ...... 19 Requirement of ADA ...... 40 Taxicab Operation Licenses ...... 20 Renting or Leasing an Office or Facility . . 40 Business And Investment ...... 21 CHAPTER 8 - HOOKING UP TO THE LOCAL CHAPTER 4 – OPERATING A BUSINESS . . 26 UTILITY ...... 42 Getting Loans and Financial Assistance . . 26 Commonwealth Utilities Corporation (CUC) 42 Opening a Bank Account ...... 27 Obtaining Telephone Services ...... 42 Protecting and Preserving the Environment 27 Other Information and Resources . . . . 43

CHAPTER 5 - PAYING CNMI TAXES . . . . 30 AGENCIES AND ORGANIZATIONS . . . . 45 Health Care Impact Tax Bill (HB 18-34) & Non-Communicable Diseases (NCDs)

HB 18-34 aims to increase the sin tax on tobacco Tobacco abuse is the single most critical risk factor and alcohol and introduce a sin tax on related to the leading chronic diseases in the CNMI- sugar-sweetened beverages (SSB); the most critical cancer, heart disease, and emphysema. risks associated with NCDs. FACT #1 FACT #6

About 7 out of 10 deaths in the CNMI are due to Children born in the year 2000s will be the “ rst NCDs (i.e. heart disease, stroke, cancer and generation who would die before their parents due diabetes). to NCDs.” FACT #2 FACT #7

CHC reported a 126% (N=34) increase in newly Evidence shows that a higher tax is the most registered dialysis patients in 2012 compared to eective way to reduce use of the sin tax products, 2011(N=27). especially among the youth and the poor. FACT #3 FACT #8

PSS reported in 2013 that 57% of students are at HB18-34 aims to: 1) Reduce use and limit access of risk of obesity. unhealthy products; and 2) Fund NCD prevention, medical care cost and MPLT loan. FACT #9 FACT #4

The 2011 CNMI Youth Risk Behavior Survey (YRBS) revealed current alcohol use among high school students have increased to 41.4%. - National Institute of Health FACT #5

Governor Eloy S. Inos signed a NCD Emergency Directive on April 18th, 2013 to mobilize “whole of society” to address the NCD crisis in the CNMI. FACT #10

*More facts and data sources are available by emailing: [email protected] . CHCC Division of Public Health Services HB18-34 & NCDs Fact Sheet Version 2 (05/23/13) Health Care Impact Tax Bill (HB 18-34) & Non-Communicable Diseases (NCDs) Welcome to the CNMI Business Resource Guide! We hope you find the CNMI Business HB 18-34 aims to increase the sin tax on tobacco Tobacco abuse is the single most critical risk factor Resource Guide a useful source of and alcohol and introduce a sin tax on related to the leading chronic diseases in the CNMI- information for your company . In this guide you will find a valuable compilation of sugar-sweetened beverages (SSB); the most critical cancer, heart disease, and emphysema. relevant business information, as well as risks associated with NCDs. public and private business resources . Our FACT #1 FACT #6 goal is to make the process of doing business CNMI SBDC in CNMI easier . We do this by setting out COMMONWEALTH OF THE NORTHERN ISLANDS all of the basic information that businesses About 7 out of 10 deaths in the CNMI are due to Children born in the year 2000s will be the “ rst SMALL BUSINESS DEVELOPMENT CENTER generation who would die before their parents due PISBDCN ... in Partnership with the U.S. SBA operating in CNMI need to know, and by NCDs (i.e. heart disease, stroke, cancer and providing contact information to professional to NCDs.” diabetes). and industry specialists that can help you start-up, grow and expand your business . FACT #2 FACT #7 Please note that businesses operating in CNMI must comply with the laws and CHC reported a 126% (N=34) increase in newly Evidence shows that a higher tax is the most regulations of both the United States registered dialysis patients in 2012 compared to eective way to reduce use of the sin tax products, Government and the Government of the 2011(N=27). especially among the youth and the poor. CNMI . The CNMI welcomes new businesses to its business community family . We trust FACT #3

FACT #8 you will find that operating a business here to be both a personally rewarding Commonwealth and a profitable experience . With proper PSS reported in 2013 that 57% of students are at HB18-34 aims to: 1) Reduce use and limit access of planning, sound management practices, well risk of obesity. unhealthy products; and 2) Fund NCD prevention, Development trained employees, the appropriate level of medical care cost and MPLT loan. investment, and access to credible sources Authority of business information, we believe that you will then have laid the foundations for FACT #9 FACT #4 a bright and prosperous business future in CNMI .

The 2011 CNMI Youth Risk Behavior Survey (YRBS) The CNMI Small Business Development revealed current alcohol use among high school Center is a member of the Pacific Islands students have increased to 41.4%. - National Small Business Development Center Network Institute of Health (PISBDCN) . Its mission is to support the

FACT #5 growth and economic development of the U .S . affiliated islands in the western pacific by providing free, one-to-one, confidential business counseling and high quality training CNMI to existing and prospective small businesses . Governor Eloy S. Inos signed a NCD Emergency Directive on For more information about the PISBDCN’s Department of programs and services, please visit www . April 18th, 2013 to mobilize pacificsbdc .com or communicate directly with “whole of society” to address COMMERCE the PISBDCN’s Service Centers located in the NCD crisis in the CNMI. the areas of the Republic of Palau, Republic FACT #10 of Marshall Islands, Federated States of Micronesia (Yap, Chuuk, & Kosrae) and *More facts and data sources are available by emailing: [email protected] . Commonwealth of Northern Mariana Islands . CHCC Division of Public Health Services HB18-34 & NCDs Fact Sheet Version 2 (05/23/13) CNMI GUAM

Pacific Islands Small Business Development Center Network PISBDCN

CHUUK YAP RMI KOSRAE PALAU

CNMI Small Business Development Palau SBDC Kosrae SBDC Center P .O . Box 9 P .O . Box 577 CNMI Department of Commerce Koror, Palau 96940 Tofol, Kosrae State FM 96944 Capitol Hill Tel: (680) 587-6004 Tel: (691) 370-2751 Tel: (670)664-3018 Fax: (680) 587-1549 Fax: (691) 370-2066 Fax: (670)664-3067 Perry Inos Jr . Director Republic of the Marshall Islands Yap SBDC Email: perry@pacificsbdc .com SBDC P .O . Box 1171 P .O . Box 1727 Colonia,Yap FM 96943 Guam SBDC Majuro, Marshall Islands 96960 Tel: (691) 350-4801 Leon Guerrero School of Business & Tel: (692) 625-3685/3384 Fax: (691) 350-4803 Public Administration Building Fax: (692)-625-3821 University of Guam PO Box 5014, UOG Station Chuuk SBDC Mangilao, Guam 96923 P .O . Box 1604 Tel: (671) 735-2590 Weno, Chuuk FM 96942 Fax: (671) 734-2002 Tel: (691) 330-5846 Fax: (691) 330-5847 1. About the CNMI 1.1 Historical Background Settlement in the Mariana Islands This prosperous period came to an end began over 4,000 years ago with the arrival in December 1941 with the outbreak of COMMONWEALTH OF THE NORTHERN of seafaring explorers from Southeast the Pacific War . The American invasion of MARIANA ISLANDS comprises a chain of Asia . These immigrants are the ancient the Marianas began with the amphibious fourteen islands possessing a combined ancestors of the modern day Chamorros, assault against Saipan on 15 June 1944 land area of 184 square miles spread out the indigenous residents of the Mariana succeeding in wresting the island from its over 264,000 square miles of ocean . They Islands . Ancient Chamorros were skillful determined Japanese defenders . are the northernmost group in a region horticulturalists, mariners and fisher folk Airfield construction began of the Pacific commonly referred to as who adapted to an environment made immediately . By early 1945, five B-29 Micronesia . challenging by periodic droughts and wings were operating out of fields on Located just north of Guam, the powerful tropical storms . Guam, Tinian and Saipan . The full potential Mariana Islands are on the edge of the Europeans first arrived in the Mariana of the Marianas airbases was realized in Philippine Plate . Saipan is 3,300 miles from in 1521 when Ferdinand Magellan touched August 1945 when Tinian-based B-29s Honolulu; 5,625 from San Francisco; 1,272 at Guam . Forty-four years later the islands dropped atomic bombs on the Japanese miles from Tokyo; and 3,090 miles from were officially claimed by Spain . In the cities of Hiroshima and Nagasaki . Shortly Sydney . They were formed by underwater early decades of the nineteenth century, thereafter, Japan sued for peace, thus volcanoes along the Marianas Trench . Refalawash migrated to the Marianas ending the Second World War . Although the island Guam is a part of Islands . As the Refalawash came from Following the war, the islands were the Mariana Archipelago, it is politically the Caroline Islands, they are commonly administered by the Department of the Navy separate from the Commonwealth and is referred to as Carolinians . under a trusteeship agreement created by administered as an unincorporated territory Germany took formal possession the United Nations . The Trust Territory of the of the United States . The Northern Mariana of the Northern Mariana Islands in Pacific Islands (TTPI) as this governmental Islands have been in political union with November 1899 . The tiny German organizational was named, was unique in the United States since 1976 when the administration focused its efforts on that it was the only “strategic” trusteeship Covenant to Establish the Commonwealth economic development . German rule was created by the United Nations . In 1962, of the Northern Mariana Islands was brought to an abrupt end by a Japanese military control ended and administrative signed by President Gerald R . Ford . naval squadron that seized the Northern responsibilities passed to the Department The Commonwealth’s population is Marianas in October 1914, and in 1921, of the Interior . Saipan became the capital concentrated on the main southern islands the League of Nations formally recognized of the TTPI . Later in the 1960s, Chamorros of Saipan, Tinian & Aguiguan, and Rota . Japan’s control of Micronesia, including and Carolinians made their desires known Saipan is by far the most populous and the Northern Mariana Islands, under the regarding their future political status; developed with an economy supported by provisions of a League Mandate . Marianas political delegation began direct tourism . The island also serves as the seat The Japanese focused their energies negotiations with the U .S . government to of the Commonwealth government . Tinian, on commercial development and by the establish a permanent political union with only three miles to the south of Saipan, early 1930s, large sugar cane plantations the United States; the resulting agreement, has a much smaller population (3,540) that and refining mills were operating on referred to as the Covenant . resides in the southern one-third of the Saipan, Tinian and Rota . At the height of Under the terms of the Covenant, island . The northern two-third leased by operations, the Northern Mariana Islands indigenous residents of the Northern the U .S . government and used for military produced thousands of tons of processed Mariana Islands enjoy U .S . citizenship and training exercises . Rota, at the southern sugar, alcohol, and other products that are afforded full protection under the U .S . end of the Commonwealth, also possesses were shipped to markets in Japan . Constitution, and internal self-government . a small population (3,283) .

CNMI Business Resource Guide 1 About the CNMI 1.2 Overview Information about initiatives by the current of the local Mayor to obtain information administration, please refer to: about community needs and priorities . The Commonwealth of the Northern Mariana Islands (CNMI) has numerous COMMONWEALTH OF THE NORTHERN For information about initiatives by the government agencies, boards and offices with MARIANA ISLANDS CNMI Mayor’s Office, please refer to: which businesses must interact . The number OFFICE OF THE GOVERNOR & LT . SAIPAN MAYOR’S OFFICE of entities, along with their registration and GOVERNOR 2nd Floor Reyes Building filing requirements, may make the business Juan A . Sablan Memorial Bldg . Capitol Hill Oleai Saipan set-up process seem overwhelming . The list Caller Box 10007 Saipan, MP 96950 below helps to ease the process by: Saipan, MP 96950 P: (670) 234-6208 • Describing general procedures P: (670) 664-2200/1/2 F: (670) 234-1190 and issues related to business F: (670) 664-2211 establishment in the CNMI; W: www .executive .gov .mp Rota Mayor’s Office • Serving as a resource guide to P .O . Box 537 government and private offices and COMMONWEALTH OF THE NORTHERN Rota MP 96951 organizations that businesses may MARIANAS ISLANDS LEGISLATURE 670-532-9451 need to be in contact with in the The CNMI Constitution establishes the establishment process; and Legislative Branch under Article II, Section Office of the Mayor • Providing online access to forms and 1, which composed of a Senate and House Municipality of Tinian and Aguiguan references that businesses need to of Representatives . The Senate consists of P .O . Box 52059 Tinian, MP 96952 file or be familiar with to legally set 9 Members- 3 members elected at large Tel: 433-1800 up and operate in the CNMI . from each senatorial district . The House Fax: 433-1810 of Representatives have 20 Members- 18 Although every effort was made to members from Saipan and the Northern Northern Islands Mayor’s Office provide the most current instructions and Islands, 1 member from Rota, and 1 member PO Box 10007 forms, sources should be contacted directly from Tinian and Aguiguan . Saipan, MP 96950 before filing and registering as fee amounts, (670) 665-6466/67 forms, and registration requirements may Northern Marianas Commonwealth change . This is a general guide only . It is Legislature 1.4 Judiciary limited in scope and may not mention or P . O . Box 500129 include reference to all applicable laws, rules Saipan, MP 96950 People of the Commonwealth of the or regulations in the CNMI . It should not be P: (670) 664-8967/8 Northern Mariana Islands benefit from a used as a substitute for the law, promulgated F: (670) 664-8919 judiciary that is an independent and co- regulations or competent legal advice W: www .cnmileg gov. .mp equal branch of government .

1.3 Government CNMI Mayors - The CNMI is divided The Superior Court into 4 municipalities (Saipan, Rota, Tinian, A covenant between the United and Northern Islands) . Each municipality is The Commonwealth Superior Court States and the CNMI governs the relations governed by an elected mayor and an elected is the Commonwealth’s trial court, with between the CNMI and the United States municipal council . Mayors are responsible general jurisdiction over civil and criminal and provides for full American citizenship for assuring an appropriate level of service proceedings . Five Commonwealth Superior for all people born in CNMI . is provided to the villages, and that these Court judges preside in courtrooms in the Judicial Building in Susupe, Saipan; The Office of the Governor - CNMI services are distributed equally . Businesses proceedings are also conducted periodically has a governor and lieutenant governor considering locating to a particular village in Rota and Tinian courtrooms . who are elected for a four-year term . should consider paying a visit to the Office 2 CNMI Business Resource Guide About the CNMI Commonwealth Superior Court The Rota Judicial Center 1.5 Education proceedings are largely governed by P . O . Box 511631 Commonwealth court rules applying in Rota, MP 96951 Children growing up in the Northern various types of proceedings (e .g ., the Mariana Islands have an opportunity to Commonwealth Rules of Criminal Procedure) . US DISTRICT COURT FOR THE live and attend school with children of Commonwealth Superior Court decisions NORTHERN MARIANA ISLANDS many nationalities . Based on the U .S . may be appealed to the Commonwealth educational system, mandatory school age Supreme Court . The District Court for the Northern Mariana in the Marianas is from 6 to 16 years or Islands was established by an act of Congress in from the first through the 12th grade . The 1977 and became operational in January, 1978 . CNMI Public School System consists of 12 Supreme Court It sits on the island of Saipan, but may also sit elementary schools, 4 junior high schools, at other places within the Commonwealth . The The Commonwealth of the Northern and 5 high schools . For children under 6 District Court has the same jurisdiction to hear years old, there are head start programs Mariana Islands (NMI) Supreme Court is federal cases as United States District Courts, the appellate court of the Northern Mariana including bankruptcy cases . Appeals are taken and preschool opportunities . Islands, with jurisdiction to hear appeals to the United States Court of Appeals for the from final judgments and orders of the NMI Ninth Circuit . Contact Information: Superior Court . All appeals from the NMI Judges of the District Court for the Public School System (PSS) Supreme Court go directly to United States Northern Mariana Islands are appointed by the P . O . Box 501370 Supreme Court . President of the United States, with the advice Saipan, MP 96950 Contact Information: and consent of the United States Senate, to P: (670) 237-3001/3 Guma’ Hustisia, Iimwal, Aweewe on ten-year terms or until a successor is chosen F: (670) 664-3798 Saipan and qualified . The first District Court judge was W: www .cnmipss org/. the Honorable Alfred Laureta, who served from 1978 until 1988 . His successor is the Honorable Commonwealth Superior Court Tinian Office 433-0570 Alex R . Munson who retired in February 2010 . P . O . Box 500307 Rota Office 532-0561 On January 26, 2011, President Barack Saipan, MP 96950 Head Start Program P: (670) 236-9700 Obama nominated the Honorable Ramona Villagomez Manglona and was confirmed by Saipan 664-3751 F: (670) 236-9742 the Senate on July 27, 2011 . On July 29, 2011, Tinian 433-3410 President Obama signed the commission, Rota 532-9471 Commonwealth Supreme Court which was the official act of appointment of P . O . Box 502165 Judge Manglona to the District Court . Judge Private Schools Saipan, MP 96950 Manglona assumed office as Chief Judge on P: (670) 236-9800 July 30, 2011 becoming the first person from In addition to the Public School F: (670) 236-9702 the Northern Mariana Islands to serve as a System, there is a choice of about 20 W: http://www .justice gov. .mp/superior_ federal judge . private schools to meet the diverse needs court .aspx Contact Information: of an international community . U S. . District Court for the Northern The Tinian Courthouse Mariana Islands Superior Court NORTHERN MARIANAS COLLEGE 2nd Floor, Horiguchi Building, Garapan P . O . Box 80 P .O . Box 500687 Accredited by the WASC Accrediting Tinian, MP 96950 Saipan, MP 96950 Commission for Community and Junior Tel: 433-3410 P: (670) 236-2902 Colleges, the Northern Marianas College Fax: 433-0284 F: (670) 236-2910 offers certificate and associate degrees W: www .nmid .uscourts .gov/ in a number of fields and bachelor degree

CNMI Business Resource Guide 3 About the CNMI programs in education and business . The 1.6 Healthcare CNMI, however, is generally lower than in college includes the Business Development the U .S . mainland . The Northern Marianas offer a variety Center (BDC), an FM public radio station, DEPARTMENT OF PUBLIC HEALTH of medical, dental and eye care options . a Distance Education program, and a SERVICES host of other programs and projects . The The island of Saipan has orthodontic Commonwealth Health Center (CHC) 234-8950 NMC Business Development Center (BDC) services and opthomological care in addition to essential services . The major Rota Health Center 532-0954 was established in 1993 to help local medical needs of the Northern Marianas Tinian Health Center 433-9233 entrepreneurs establish and maintain small are met by the Commonwealth Healthcare Family Care Clinic 234-8917 business enterprises . Corporation (CHC) . CHC is a unified medical Children’s Development Assistance Center 664-4845 Contact Information: center which accommodates inpatient and Women & Children’s Clinic 234-8943 Northern Marianas College outpatient services, emergency care, public Kagman Community Center 256-5243 P . O . Box 501250 health and dental services, hemodialysis DENTAL SERVICES Saipan, MP 96950 and other ancillary and diagnostic services Saipan Seventh-day Adventist Clinic 234-6323 P: (670)234-5498 and administrative offices . CHC services Smile Saipan 235-3720 F: (670) 234-1270 and facilities include a clinical laboratory, electrocardiography, ultrasound and Toothworks 234-3810 W: www .nmcnet .edu radiology . Dental Care 233-1100 Dental Wave 233-3300 In addition to CHC, there is also a Tinian Office: 433-0648 OPTOMETRIST NMC Public Library 433-0504 variety of private health clinics offering HARDT EYE CLINIC GARAPAN 235-2030 Rota Office: 532-9477 competitive services . Medical facilities in the CNMI must meet U .S . standards . The MARIANAS EYE INSTITUTE 235-9090 cost of medical insurance and care in the

Pre-employment Background JURAL GROUP Investigation Information and Security Consulting Arrests, Conviction, Sex O ender, PROVIDING THE EDGE FOR SUCCESS Bankruptcy, Civil Litigation, Address and Reference Verication

Investigation Violation of Laws and Company Regulations and Policies

Grant Management Grant Research, Application, Implementation and Reporting

Risk Assessment Personal and Physical Security.

Executive Protection Personal Security/VIP Protection

Surveillance Verication and Conrmation P.O. Box 500341 Talabwogh Ave, Tanapag Village Saipan, MP 96950 Cell: (670) 285-3488 • Tel/Fax: (670) 323-3201 • Email: [email protected] 4 CNMI Business Resource Guide Business Planning initial planning (estimated to be the cause FINANCIAL PLAN for over 90% of business problems); Not 2. Business l Initial Required Funds (star t-ups) enough capital; and lack of prior business or industry experience . l Historical Financials (existing Planning businesses) 2.1 Introduction 2.2 Sample Business Plan l Sources of Finance l Monthly Operating Costs A sample business plan outline is set A business plan is a statement of l Pricing Strategy & Gross Profit Margin out on this page, and the following pages what the business is how it operates, how l Unit Sales Forecast it is managed, how it interacts with the contain detailed descriptions for what is l Break-even Analysis marketplace, how it functions financially, required in each section of the business and what its strengths and weaknesses plan . l Projected Financial Statements are . Through financial and operational SAMPLE BUSINESS PLAN OUTLINE l Forecasting Assumptions projections, the plan describes where the l Risk Analysis and Alternative Plans of COVER PAGE & TABLE OF business is going and what is needed for Action CONTENTS it to get there . It is a planning tool that ATTACHMENTS/SUPPORTING sets out the goals of the business and EXECUTIVE SUMMARY the path it needs to follow to get there . DOCUMENTS l Business Summary It helps the business owner to make Usually at the request of a bank: l Request for Financing appropriate judgments and decisions l Loan application by forcing consideration of all of the l Personal financial statement important areas of business operation . In BUSINESS DESCRIPTION l Business licenses, permits addition, a business plan is almost always l History & Business Ownership required by lenders considering a business l Resumes of key personnel l Products/Services Offered loan application . Also consider who will l Three years personal & business tax l Mission Statement & Business Goals be reading your business plan, why they returns are reading your business plan, and the INDUSTRY ANALYSIS & l Resumes of key personnel response you hope to generate from them . MARKETING PLAN l Leases, contracts, & building plans There will be changes in emphasis in a l Business & property insurance business plan pitched to a bank, an investor l Market Analysis & Target Markets or venture capitalist, or if it is to be used as l Competitive Analysis l Personal & business references a management planning tool . The failure l Products/Services Differentiation l Business ownership documentation rate for small business is the subject of l Key Success Factors (articles, by-laws, etc .)t many myths and half-truths due to the l Marketing Strategy absence of reliable statistical evidence . A. Cover Page & Table of The most relevant research to date was the MANAGEMENT AND Contents: US Small Business Administration (Office OPERATIONS PLAN A well-designed cover page and table of Advocacy) Study “Refining Business l Key officers, Management & Personnel of contents ensures that readers of your Success” (2002) . It reported that 50% business plan do not waste time searching of new establishments with employees l Production/Service/Distribution Methods through your plan for the information they survive for at least 5 years, and that 1/3 are most interested in . First and foremost, l Suppliers & Facilities (one-third) of all businesses close for on the cover of your business plan, set out l Production Methods & Quality Control reasons other than business failure . The the proposed name of the business venture, three principal causes of serious business l Billing, Collections & Recordkeeping the name and contact details of the author, problems or outright failure are: Poor Policies and the date it was completed . Very few CNMI Business Resource Guide 5 Business Planning investors will read your plan from front C. Business Description Market Analysis & Target Markets: to back . Instead, they will normally jump What industry are the product/ service around looking for the details that they History & Company Ownership: in? What is its competitive profile (one, will focus upon in making an investment The exact legal name of the business, two, several, or many)? What is the size decision . Keep this in mind when you the legal form of the business, who owns of this industry ($ volume of sales, unit design your table of contents, and try to it, and how it was established? sales, number of households reached, make it as easy as possible for readers to Description & Location of Business etc .)? What are the growth trends and the find their way around your plan . Products & Services: product/service outlook for this industry? Describe the physical address and What are the profitability characteristics B. Executive Summary: general location of the business, and the of this industry (high or low margins, high type of business it is primarily engaged overhead, high capital investment)? How Frequently made up of two separate in (wholesale or retail trade, service, large is the target market (number of sections. manufacturing, agriculture/forestry/ consumers or businesses)? What are the Business Summary: fishing, construction, transportation,growth trends and potential for the target The executive summary is potentially etc .) . Describe the products and services market? How are they distributed? the most important section of your in enough detail so that it is readily After completing the industry analysis, business plan . It is normally the first understandable . the next step is to identify the target section of your business plan that investors Mission Statement & Business Goals: markets and customers who are most likely will read, and could be the last if it is The mission statement is both to benefit from and therefore purchase poorly written . A good executive summary practical and philosophical . It is extremely the company’s products/services . The is essentially a condensed but powerful important because everything the business 80/20 rule of thumb states that 80% of a summary of your entire business plan . It does in the future must be consistent and company’s revenues are generated by 20% creates a first impression in your reader’s in compliance with its content . The mission of its customers . mind of both you and your business . Use statement can include: the purpose for clear and concise language and stick to the Competitive Analysis: which the company exists; what the How many competitors, direct and facts . Investors and lenders are searching company does; the company’s goals; for evidence that justifies the soundness indirect, are there in the marketplace and quality control policies; its role in the what are their competitive characteristics? of your opportunity, and that gets them community; ethical practices; profitability; excited about what you intend to achieve . Where does the business fit in; what market employees; customers; shareholders; and segment niche will be pursued? How will If possible, try to present your executive the environment . The goals should be summary on a single page (but 3 pages at a the business gain a competitive advantage primarily financial (such as an increase in over the competition? A competitive matrix maximum) . Focus on the opportunity you are revenues or customers) and be supported presenting your investor and explain why it is a good way to summarize a competitive by planned management actions (purchase analysis . is special . Make certain that the opinions additional equipment, hire additional Product/Services Differentiation: and claims in your executive summary employees, repay debt) . are fully supported in the other sections What is different about the business of your business plan . And use concrete from other competing businesses? Ways facts and figures to explain your business D. Industry Analysis & products/services are differentiated concept, market niche, and financial Marketing Plan include: higher quality; better customer projections . Requesting for Financing The marketing plan is the critical service; quicker responsiveness; safer, (or Investment): Include the details of the link between the product/service and healthier; more attractive; more convenient; loan or investment you require (the amount customers . A clear cut definition of target and lower cost (and others) . you need, what you will spend it on, and markets is a critical part of the marketing the return you offer your investor . plan .

6 CNMI Business Resource Guide Business Planning

E. Management & Operations feet) of the building and the age? Is there of funds for inventory, payroll, rent, debt Plan enough space to accommodate growth? payments and other expenses and the Can the facilities be upgraded or will the actual receipt of cash from sales . Cash flow This section of the business plan business have to move if it grows during planning is simple in concept, but involves describes how the business will function the planning period? Is it easy to get to, and considerable effort to manage . Time is the internally in order to produce, deliver, is there adequate parking? critical ingredient . monitor distribution of its products/ services and take appropriate management Production Methods & Quality Initial Required Funds: Control: actions in response to financial and Primarily for new businesses, this How will the product actually be operating results . Without operating and is a list of all the assets needed to fund produced (describe the production control systems fully thought through and the start-up of the business . This list process)? How will consistent quality of presented in the business plan, a financier may include land & buildings, renovation product and service delivery be assured? and/or investor will question whether the costs, equipment, furniture and fixtures, What specific quality control measures will business can actually realize the goals set and vehicles, as well as initial operating be implemented? out in the business plan . costs such as up-front training, beginning Key Officers, Management & Billing, Collections & Record Keeping inventory, rent and utility deposits, pre- Personnel: Policies: launch marketing expenditures, and Who will put the business plan Describe billing procedures . Are working capital (cash to run the business into action? How many employees will accounts receivable monitored? How until the business becomes profitable) . often? Are formal collection policies in there be over the planning period? What Historical Financial Statements: place? Business owners are responsible functions will they perform? What are Primarily for existing businesses, for maintaining a universally accepted the skills required to fulfill particular job attach the past three years of balance method of recordkeeping . The system responsibilities? What will their hours be sheets, income statements and cash flow should be simple to use, accurate, timely, (part-time, shift, etc .)? What will be the pay statements to the business plan . In this and consistent . While it provides important scale and benefits offered by the company? section discuss any relevant trends and business information to the owner, it must variances in: assets, debts and equity; Product/Service Distribution also be in a form that can be reviewed revenues, cost of goods sold (COGS), Methods: by other stakeholders — business overhead and net income; cash received, How is the product/service actually consultants, lenders or government cash paid out and net cash balances . produced? To illustrate the process, entities, for example . consider describing a day in the life of the Sources of Finance: company from opening to closing . How are F. Finance Plan How much will be contributed by products serviced? Do clients come to an the owners of the business and what is office or is the service performed at the The financial section of the business the value of these contributions? This customer’s site? What are the hours the plan is the numerical expression of the represents your equity contribution, and business is open? marketing analysis and operating plans . may include vehicles, renovation equipment Suppliers & Facilities: The financial projections indicate if the or cash . Banks will typically require proof of What materials are used to produce business idea is attractive enough to equity contribution, so remember to retain the product/service and who are the secure . The thoroughness of the financial receipts for your equity contributions . suppliers? Are these suppliers reputable plan will assure the reader that the As a general rule, banks would be and reliable? Do they supply the best business will be well managed . seeking an equity contribution by the quality at the most competitive price? The cash flow projections are the owners of the business of 20% or greater . Describe the physical facilities in which most important section of the finance The balance of the funds required to start the business will be located . Is it owned plan . The need for cash flow planning your business after the owner’s equity or leased? What are the terms (price and comes from the time discrepancy that contribution would typically represent the term) of the lease? What is the size (square usually exists between the expenditure amount of your loan request . CNMI Business Resource Guide 7 Business Planning

Monthly Operating Costs: The balance sheet is a statement of 1 . Loan application How many employees will you need to assets, liabilities and equity at a specific 2 . Personal financial statement run your business, and what is the monthly date . For existing businesses, include 3 . Business licenses, permits, etc . payroll cost? Have you allowed for the a balance sheet from the most current 4 . Three years personal (and business) cost of employee social security taxes and period . For startup businesses, include an tax returns workers compensation insurance? Other estimated opening (pro forma) balance 5 . Resumes of key personnel monthly operating costs include rent, sheet . Discuss significant balance sheet 6 . Copies of leases, contracts and utilities, marketing expenditures, supplies, items . building plans fuel, maintenance, etc . Forecasting Assumptions: 7 . Copies of business and property Pricing Strategy & Gross Profit No reader can understand any financial insurance Margin: projections without an explanation of 8 . Personal / business references and Pricing is the single most important the forecasting assumptions behind product/service endorsements factor affecting profits . Pricing a product/ the numbers . The assumptions need 9 . Samples of marketing materials service includes consideration of the to be written out on a line by line basis, 10 . Business ownership documentation following factors: the customers; explaining any seasonal variations . If the (articles of incorporation, by-laws, competitive marketplace; business’s assumptions are credible, and supported partnership agreement, borrowing position in the marketplace; and pricing by the market research set out in the resolution, etc .) must be adequate to return a profit to the marketing plan section, the projections are owners and investors . The prices of similar likely to be accepted as credible by lenders Registrar Of Corporations products/services will limit your pricing and investors . Department Of Commerce 1st Floor Dept . Of Commerce Bldg flexibility . Risk Analysis & Alternative Plans of Capitol Hill Break-Even Analysis: Action: Caller Box 10007 How many units must be sold to cover What steps will be taken if some Saipan MP 96950 all costs? Break-even analysis pinpoints or all of the assumptions in the plan how changing prices, and/or increasing are not realized? By careful, thorough or decreasing expenses, will affect planning, big surprises can be avoided, but profitability and unit sales . Break-even uncontrollable external factors (oil prices analysis tests the feasibility of achieving rises, typhoons) are always present . How the level of unit sales necessary to pay for will the company respond if sales drop? all costs . What if product costs go up? What if a Projected Financial Statements: new competitor unexpectedly enters the Prepare monthly cash flow and income market? If consumer preferences change, statement projections for the next fiscal how can the product/service be adapted to year . Prepare annual cash flow projections, meet these new needs? income statements and balance sheets for Please Note: It is always advisable to have the next two years (financial projections a certified public accountant review your should be prepared for a minimum of financial statements. three years) . In particular, the cash flow projection is a critical tool for a new and G. Supporting Documents growing business . It indicates how much cash is needed and when it is needed, so Set out below is a list of possible that investing and borrowing needs can be attachments that may be required to arranged in advance . support a business plan (usually at the request of a bank):

8 CNMI Business Resource Guide Defining and Registering business Entities

PARTNERSHIPS difference between C- and S-Corporations 3. DEFINING AND The two types of legal partnerships relates to tax issues . Considered the most in the CNMI are: general and limited . complex and time consuming to create, A general partnership has two or more investors should consult with a practicing REGISTERING owners sharing management and liability attorney in establishing a corporation . of the business but is not incorporated . BUSINESS Partners control the operations of the A. Registration Procedures for Foreign business and have unlimited liability for Corporations business obligations . A business with one ENTITIES Foreign corporations register by or more general partners with the same completing and submitting an Application Investors have a choice of legal structures rights and responsibilities and one or more for Certificate of Authority to the Registrar to choose from when forming a business limited partners playing passive roles in the of Corporations . The application and an in the CNMI: business is a limited partnership . Limited official certificate that verifies that the _ Sole proprietorship partners do not actively participate in the corporation exists in good standing with _ Partnership (General or Limited) management of the business to avoid the country or state of its formation must _ Corporation (C or S) being personally liable for the debts of the be submitted to the Registrar in triplicate . _ Limited Liability Company business . The most a limited partner may This certificate must be obtained from the (Partnership or Corporation) lose is the amount of his/her investment in appropriate office in which the original the partnership . Each structure has its own legal and company was registered and presented with Partnerships must register by an English translation where applicable . tax differences . It is highly recommended submitting to the Registrar of Corporations that practicing attorneys and accountants The Registrar will not accept application a Partnership Registration Form . The packages without proof of payment to the be consulted before deciding which type Registrar of Corporations requires of business structure is appropriate for the CNMI Treasury of the filing fee of one- partnerships to file the Annual Partnership hundred dollars ($100) . Once this fee is individual investor and the company . A list Statement . of attorneys and accountants may be found paid and the incorporation documents meet For more information about registration in the Yellow Pages of local telephone and statutory requirements, the Registrar will procedures and reporting requirements for business directories . file and return a file-stamped copy of the general or limited partnerships, contact: documents and a Certificate of Authority to This section highlights the format and Registrar of Corporations the corporation . registration requirements for the legal CNMI Department of Commerce forms of business in the CNMI . Caller Box 10007 B. Registration Procedures for Donni Hill Building SOLE PROPRIETORSHIPS Domestic Corporations Capitol Hill Domestic corporations are required As the name implies, sole Saipan, MP 96950 proprietorships have one business owner . to submit Articles of Incorporation and By- Tel .: (670) 664-3002 laws of the Corporation in triplicate to the They are the easiest and least expensive Fax: (670) 664-1015 to establish since legal formalities are Registrar of Corporations . As specified in the Checklist (for Registration of Domestic not necessary . Proprietors or owners have CORPORATIONS complete control over the business, receive Corporations), the Articles of Incorporation C-Corporations and S-Corporations must set forth: all profits or incur all losses of the business . are the legal forms of corporations in the 1 . the name of the corporation Owners, therefore, are personally liable for CNMI . Corporations are legal entities containing the words: “Corporation,” all business debts; liability is not limited to separate from the individuals that own “Incorporated,” “Company,” or the value of the business . or operate them; they have their own “Limited” or their abbreviation . assets, liabilities, rights and privileges . The

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 9 Defining and Registering business Entities

2 . the number of shares that the foreign corporation authorized to transact the country or state of its formation . corporation is authorized to issue business in the CNMI . Registered agents Applications for Amended Certificate of 3 . the address of the corporation’s must sign the Consent and Authorization Incorporation must be submitted with initial registered office and the name to Appointment as Registered Agent . This applicable articles of amendment, articles of the initial agent at that office document gives consent to service of of restatement, or amendment of by-laws . 4 . the name and address of each process only and does not include liabilities To register cancellation or dissolution incorporator and obligations of the corporation . The of a corporation, an authorized person must consent and authorization is valid for one complete an Application for Certificate of The Articles of Incorporation may also set (1) year . Withdrawal and submit it to the Registrar forth: If a corporation is without a registered along with proof of payment to the CNMI 1 . the names and addresses of the office or agent in the CNMI for sixty (60) Treasury of the filing fee of twenty-five individuals who are to serve as the days or more, the Registrar of Corporations dollars ($25) . initial directors may commence a proceeding to 2 . provisions inconsistent with the administratively dissolve the corporation . law regarding the purpose or LIMITED LIABILITY COMPANY purposes for which the corporation CNMI Public Law 14-11 added limited is organized; managing the business D. Reporting Requirements liability companies (LLCs) as another form and regulating the affairs of the Corporations registered in the CNMI of legal business structure in the CNMI . corporation; defining, limiting,must file Annual Corporation Reports An LLC combines several features of and regulating the powers of the with the Registrar of Corporations . The corporation and partnership structures . corporation, its board of directors, initial report must be filed within sixty (60) It has a separate legal existence and and shareholders; a par value for days after the domestic corporation was generally offers liability protection to its authorized shares or classes of incorporated or the foreign corporation owners or members . LLCs can be classified shares; the imposition of personal was authorized to transact business . as either a partnership or corporation for liability on shareholders for the Subsequent reports must be submitted tax purposes . debts of the corporation to a specific between January 1 and March 1 of the extent and upon specific conditions following calendar years . A filing fee of A. Registration Procedures for LLCs fifty dollars ($50) must be made with the LLCs must register by filing with Once the filing fee of one-hundred CNMI Treasury before annual reports are the Registrar of Corporations Articles dollars ($100) is paid and the incorporation submitted to the Registrar in duplicate . of Organization and paying the required documents are in order, the Registrar of $100 filing fee . Foreign LLCs register by Corporations will file the documents and submitting an Application for Certificate E. Change or Dissolution prepare for issuance the Certificate of of Authority – Foreign Limited Liability To register any change in a corporation, Incorporation . Company . The original application plus an authorized person must complete an two (2) copies must be submitted with the Application for Amended Certificate of required $100 filing fee and a Certificate C. Registered Office and Registered Authority for foreign corporations or an of Existence or similar record duly Agent Application for Amended Certificate of authenticated by the Secretary of State or All corporations must continuously Incorporation for domestic corporations and like official of the state or country under maintain in the CNMI a registered office submit it to the Registrar of Corporations whose law it is incorporated . and a registered agent . The registered along with proof of payment to the CNMI office may be the same as any of its places Treasury of the filing fee of fifty dollars . of business . The registered agent may Applications for Amended Certificate B. Reporting Requirements be a resident - (U .S . citizen who resides, of Authority must be accompanied by The Registrar of Corporations requires files taxes and votes in the CNMI) of an official certificate verifying that the that initial annual reports for LLCs be filed the CNMI, a domestic corporation or a corporation exists in good standing in within 60 (sixty) days of incorporation for 10 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Defining and Registering business Entities domestic LLCs or issuance of the Certificate of the business . Partnerships and Public Utilities ...... $300 of Authority for foreign LLCs . Subsequent corporations are required to submit along Security Dealers ...... $300 reports must be filed on or before March with the application a file-stamped copy of Scuba Diving Instruction . . . $100 1st of each year . The filing fee for annual the company’s most recent annual report . Scuba Diving Tour Operation $100 reports is $50 . The Business License Office also requires Produce & Fish Vendors For additional information on from corporations applying for the first (Roadside) ...... $5 filing requirements for partnerships, time copies of the company’s Certificate of Wholesalers ...... $50 corporations, and LLCs, contact: Incorporation, its Articles of Incorporation, General Business ...... $50/activity and its By-laws . Partnerships, on the other Registrar of Corporations hand, must submit a copy of the company’s CNMI Department of Commerce License applications will not be Partnership Registration Form . Applicants Caller Box 10007 considered complete without proof of whom are non-U .S . citizens must also Donni Hill Building payment of the business license fee(s) to provide the Business License Office their Capitol Hill the CNMI Treasury . Immigration Status . Saipan, MP 96950 Tel .: (670) 664-3002 NOTE: BUSINESS LICENSE ISSUANCE Fax: (670) 664-1015 The Workers’ Compensation Certificate Business License Office personnel will of Clearance certifies either: 1) that review your application for completeness For information on the Certificate all workers are covered by workers and advise you of when to pick up your of Compliance which is necessary for compensation insurance or 2) that the license . At the time of issuance, you the application to reinstate revoked or business has no employees subject to should receive a business license for each administratively dissolved corporations, such coverage. business activity and your tax identification contact: number . SPECIAL LICENSES Applications of businesses requiring Division of Revenue and Taxation CHANGE IN BUSINESS INFORMATION special licenses must be submitted with CNMI Department of Finance Any change in ownership, in the lines copies of the special licenses . Businesses P .O . Box 5234 CHRB of business, or other information contained may need to obtain licenses from 1st Floor, Joeten Commercial Building in the original Application for Business government agencies or organizations such Dandan, Saipan, MP 96950 License must be reported to the Business as the Alcoholic Beverage and Tobacco Tel .: (670) 664-1000-Saipan; 532-1040- License Office within ten (10) working days Control Division, the Banking Office, the Rota; 433-1600-Tinian of such change . Insurance Commission, the Bureau of Fax: (670) 664-1015-Saipan; 532-0473- Environmental Health, the Department of For more information on how to Rota; 433-1615-Tinian Finance or the Casino Gaming Commission obtain a CNMI Business License, contact: before engaging . Business Licensing Office Division of OBTAINING A BUSINESS LICENSE Revenue and Taxation CNMI Department of Finance Businesses need a license to operate LICENSE FEES P .O . Box 5234 CHRB in the CNMI . A CNMI Business License may The business license fee varies for the 2nd Floor, Joeten Commercial Building be obtained by submitting an Application different industries . They are as follows: for Business License with the Business Dandan, Saipan, MP 96950 Banks ...... $500 License Office along with an Application for Tel .: (670) 664-1000-Saipan; 532- Banks (Offshore) ...... $1000 Letter of Compliance and/or Tax Clearance 1040/1065-Rota; 433-1600-Tinian Insurance Agents ...... $75 from the Division of Revenue and Taxation, Fax: (670) 664-1015-Saipan; 532-0473- Insurance Brokers ...... $100 a Workers’ Compensation Certificate of Rota; 433-1615-Tinian Insurance Companies . . . . . $300 Clearance from the Workers’ Compensation Manufacturers ...... $50 Commission, and a sketch of the location Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 11 Defining and Registering business Entities

For more information on the Workers’ Class-3 Retail Dealer’s On-Sale 5 . Temporary Beer License: Compensation Certificate of Clearance, License: Authorizes the sale of beer contact: for consumption on premises Beer and Wine $20 temporarily occupied for the Workers’ Compensation Commission General: $30 purposes of picnics, special NMI Retirement Fund Restaurant: $25 P .O . Box 501247 gatherings, or similar occasions Sampling License: $10 2nd Floor, NMI Retirement Fund Building under certain conditions not Class-4 Retail Dealer’s Off-Sale Capitol Hill, Saipan, MP 96950 exceeding three days License: Tel .: (670) 664-8024-Saipan; 532-9516- 6 Club. License: Authorizes the sale Beer and Wine $20 Rota; 433-3733-Tinian of alcoholic beverages to bona- Fax: (670) 664-8074-Saipan; 532-9486- General $30 fide members and guests only for Rota; 433-3863-Tinian Sampling License $10 consumption on or off the premises Class-5 Temporary Beer License $10 where sold . OBTAINING SPECIAL LICENSES/ Class-6 Club License $100 C. Application Requirements: CERTIFICATES A completed Alcoholic Beverage Prorating: Control License Application must be In addition to the business license, Applications received between submitted along with the following: businesses or individuals may need to October to December in a given year are obtain special licenses or certificates assessed the full amount of the applicable 1 . If Corporation: before engaging in business in the CNMI . fee . Applications received between a) Current Police Clearance/Criminal January to March are assessed three- Record for persons listed on Exhibit fourths of the applicable fee while those “A” of the Alcoholic Beverage ALCOHOLIC BEVERAGE AND received between April to September are Control License Application, TOBACCO CONTROL LICENSES charged one-half of the applicable fee . bartenders, business partners and Businesses that manufacture or sell proprietors . alcoholic beverages or tobacco products B. Description of License b) Certificate of Good Standing/ must first obtain an Alcoholic Beverage 1 . Manufacturers: Authorizes the Existence, copies of corporate Control License or a Tobacco ControlLicense manufacture of alcoholic beverages documents (i .e . Certificate of to engage in such manufacture or sale . for sale to any licensed wholesaler Incorporation, By-laws, Articles of The Department of Commerce’s Alcoholic 2 . Wholesalers: Authorizes Incorporation, Annual Corporation Beverage and Tobacco Control Division the import into or purchase Report) is responsible for the issuance of such in the Commonwealth from a 2 . If Partnership: Copy of th Partnership licenses and for the enforcementof local manufacturer, agent, or wholesaler Agreement alcohol and tobacco control laws . alcoholic beverages and the sale of 3 . If application is for a Class 3 type these beverages to licensed retail I. Alcoholic Beverage Control License License: establishments a) Class 3 Retail Dealer’s On-Sale 3 Retail. Dealer’s On-Sale License: A. Class and Fees General Registration Form . Authorizes the sale of alcoholic b) Copy of Employment Authorization Class Type Fee beverages to consumers for from USCIS for non-resident workers Class-1 Manufacture’s License $250 consumption on the premises . and valid I .D . for resident workers . Sampling License $25 4 Retail. Dealer’s Off-Sale License: 4 . If applicant is a non-U .S . Citizen Class-2 Wholesale Agent’s $250 Authorizes the sale of alcoholic residing in the CNMI, a copy of E-1 License beverages to consumers for Permit from USCIS . Sampling License $25 consumption off the premises . 5 . Copy of Public Health Sanitation

12 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Defining and Registering business Entities

Permit E. Registration of Employees License; before 7:00 a .m . and after 6 . Copy of Business License Class 3 Retailer’s (On Sale) General 10:00 p .m . if the licensee holds an 7 . Applicant’s Business Location/Site Licensees must register with the Alcoholic Off-Sale License; Map . Beverage and Tobacco Control division the 4 . when election polls are open for 8 . Copy of notarized Lease/Rental names of employees engaged in the mixing voting (exemption: hotels, golf Agreement, Title or Deed referring and/or serving of alcoholic beverages by resorts, and airports) to the proposed premise to conduct filling out and submitting the Class 3 Retail 5 . Employees, owners, managers, business . Dealer’s On-Sale General Registration and agents are prohibited from 9 . Receipt of $25 Filing Fee . Form . Licensees must also post and consuming alcoholic beverages have available for inspection the List of while on duty on such premises . Additional Requirements for Retailer’s Employees and their specified duty hours . Additionally, licensees, agents or (On-Sale), General License For further guidance on the license employees may not permit persons As a condition for receiving a Class renewal process, see Renewal of Alcoholic under the age of twenty-one (21) 3 Retailer’s (On Sale), General License, Beverage Control License (Instructions) . years to mix or serve any alcoholic excluding the Class 3 Retailer’s (On- Sale) beverage . Restaurant License, applicant shall post a F. License Issuance Restrictions surety bond in the amount of five thousand H. Condition of Premises The Department of Commerce’s ($5000) United States Dollars . All applicants and licensees must: Alcoholic Beverage and Tobacco Control 1 . have the business name or trade For further reference, see Alcoholic Division does not issue licenses to name printed in English on sign Beverage Control License Instructions applicants that: boards and be displayed or mounted (New Applications) . 1 . are not the real party in interest; outside the business premises; and D. License Renewal 2 . are under the age of 21 years; 2 . have premises that are properly A completed application for renewal must 3 . have had liquor license(s) revoked constructed, furnished, arranged, be submitted with the following by June by the Department of Commerce equipped and sufficiently lit . 30 of any given year: within the prior year . Applicants and licensees of the 1 . If application is for a Class-3 4 . A restriction applies to applicants Class 3 Retailer’s (On-Sale) License type License: a) Copy of Class-3 who are located within 500 feet from must have separate and adequate Registration form, copy of any church, hospital, public or private toilet facilities for males and Employment Authorization from school buildings . These retailers females on the business premises . USCIS for non-resident workers, may sell alcoholic beverages only valid I .D . for resident workers . b) during non church and school hours II. Tobacco Control License Letter of Compliance for Bar Tax . or times when there are no school or c) Copy of latest Business Gross church activities . A. Class and Fees Revenue Tax Return . Class Type Fee 2 . Copy of Business License . G. Prohibitions Class-1 Wholesale Agent’s $300 3 . Full payment receipt for renewal . Licensees shall not sell alcoholic License Licenses will be suspended if renewal beverages: Class-2 Retail Dealer (General $100 fees are not received by June 30 . Licenses 1 . to persons under the age of 21 License) with renewal fees left outstanding for a years; Class-3 Retail Dealer (Vending $75 month will be revoked by the Secretary 2 . to persons under the influence of Machine) of the Department of Commerce . Owners alcohol; of revoked licenses must submit new Class-4 Distributor (Vending $100 3 . after 2:00 a .m . and before 9:00 Machine) applications for consideration . a .m . if licensee holds an On-Sale

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 13 Defining and Registering business Entities

The tobacco control license fee applies 5 . Copy of the Lease or Rental and mounted or displayed outside the to all applicants regardless of when during Agreement business premises . Retail establishments the year the applicant applies . In addition to 6 . Applicant’s Business Location/Site must display cigarettes and other tobacco the license fee, applications are assessed Map products behind glass partitions behind an application fee of five dollars ($5) . The 7 . Payment receipt of application fee counters or in locked cabinets that can tobacco control license is valid for one (1) and applicable license fee only be opened by the owner or store year and renewable annually . For more information, see Application agent . Cigarette vending machines may for Tobacco Control License Instructions only be located in bars, cabarets, or other B. Description of License (new and renewal) establishments that restrict admission to 1 . Wholesale Agent’s License: persons eighteen (18) years or older . Authorizes the import of tobacco C. Required Signs For more information on obtaining an products into the CNMI, and the Businesses licensed to sell tobacco Alcoholic Beverage Control or Tobacco distribution and sell of tobacco products must post signs reading: Control License, logon to http://commerce . products to licensed retail “TOBACCO SALES PROHIBITED TO gov .mp/divisions/alcohol-tobacco/ or establishments . PERSONS UNDER THE AGE OF 18” next contact the 2 . Retail Dealer (General License): to cash registers or other places where Alcoholic Beverage and Tobacco Control Authorizes the sell of any tobacco such items may be purchased . Signs must Division products to consumers . be at least eight and one-half inches CNMI Department of Commerce 3 . Retail Dealer (Vending Machine) (8 .5”) by eleven inches (11”) in dimension Caller Box 10007 CK Authorizes the sell and dispensing of with letters printed in large, bright colors . Saipan, MP 96950 cigarettes from a vending machine Letters should be in all-caps and in a plain, Tel .: (670) 664-3065-Saipan; 532-9478- that is situated on premises that easy to read font . Rota; 433-0853-Tinian only allows the entrance to persons Fax: (670) 664-3067-Saipan; 532-9510- who are 18 years and above . Rota; 433-0678-Tinian 4 . Retail Distributor (Vending Machine): D. License Issuance Restrictions Authorizes the sell and distribution The Department of Commerce’s Alcoholic BANKING AND INSURANCE of cigarette vending machines to Beverage and Tobacco Control Division LICENSES licensed establishment that allows does not issue licenses to applicants that: Businesses engaged in banking and only 18 years and above to enter the 1 . are not the real party in interest; insurance activities must obtain the license premises . 2 . are under the age of 18 years; and authority to operate in the CNMI from 3 . have had a tobacco license(s) the Department of Commerce’s Banking C. Application Requirements: revoked by the Department of and Insurance Division . A completed Application for Tobacco Commerce within the prior year . Control License must be submitted along 4 . A restriction applies to applicants or with the following (applicable to both new tobacco retailers located within 300 The Banking License and renewal applications): feet from public or private school buildings . These retailers may A. Notice of Intention to Organize 1 . Current Police Clearance/Criminal sell tobacco products only during Before any stock subscriptions are Record nonschool hours or times when made, incorporators must file with the 2 . List of names of employees or there are no school activities . Director of Banking a notice of intention to agents authorized to sell tobacco organize a bank in the CNMI . The notice of products . Employees or agents must E. Conditions of Premises intention must include: be 18 years or older . Tobacco Control Licensees must 3 . Photocopy of identification of 1 . the name, residence and occupation have the business name indicated on the employees or agents of each incorporator and the amount application printed in English on sign boards 4 . Copy of Business License of stock subscribed and paid for by 14 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Defining and Registering business Entities

each charter must accompany the Application Insurance Corporation . 2 . the name and address of an individual for Charter of a Commonwealth Bank . E. Capital Requirement within the Commonwealth to whom Incorporators must mail notice of this Banks must maintain, at all times, notice to all the incorporators may application to each bank doing business paid-in cash capital of five hundred be sent on the island in which the proposed thousand dollars ($500,000) . Organizational 3 . the total capital, the number of bank is to be located and to persons and expenses may be counted as part of this shares of each class and the par organizations designated by the Director capital requirement . value of the shares of each class of of Banking . Incorporators are also required the proposed Commonwealth bank publish in a CNMI newspaper of general 4 . statement on whether it is intended circulation notice of the application . F. Reporting Requirements The Director of Banking may, at any that the proposed Commonwealth C. Application for Banking License time, examine the condition of any bank . bank shall have trust powers After the charter is approved by the Banks, therefore, must submit quarterly 5 . the municipality in which the Director of Banking, incorporators may file statements of condition thirty (30) days proposed Commonwealth bank is to an Application for Banking License . be located . Stock subscriptions may following the quarter ended (Jan 30, April Completed applications must be be made thirty (30) days after filing 30, July 30, and Oct 30) . Banks, in addition, submitted along with the following: of such notice . must submit to the Director audited 1 . Current Annual Report financial statements . Banks must also B. Application for Charter 2 . Corporate Charter report to the Director any significant events After the stock capital is fully 3 . Certificate of Incorporation/ (i .e . mergers, stock ownership changes of subscribed, incorporators may apply for a Certificate of Authority five percent (5%) or more) . Other Licenses charter . The proposed charter must include: 4 . Articles of Incorporation Issued by the Banking Section 5 . By-laws 1 .the name of the proposed Other Licenses Issued by the 6 . Corporate Stock Register Commonwealth bank Banking Section 7 . Corporate Minutes 2 . statement on whether it is intended 8 . FDIC Certificate of Membership Finance Company or Non-Bank that the proposed Commonwealth 9 . Other documents to be part of the Lender License bank shall have trust powers application Businesses other than banks that 3 . the island on which the proposed 10 .$5,000 non-refundable application provide financing must first obtain a Finance Commonwealth bank it is to be fee Company or Non-Bank Lender License located 11 . $1,000 license fee . The Banking from the Banking Section . Completed 4 . the amount of capital, the number License may be renewed annually applications must be submitted along with of shares of each class, the relative for a fee of one thousand dollars the following: preferences, powers and rights ($1,000) . of each class, the par value of the 1 . Certificate of Incorporation/ shares of each class and the amount Certificate of Authority D. Deposit Insurance Requirement of the paid-in surplus 2 . Articles of Incorporation Except for those banks operating with 5 . a statement whether voting for 3 . By-laws at least fifty (50) depositors and borrowers directors shall or shall not be 4 . Financial and Income Tax Statements as of February 6, 1984, and those banks cumulative and the extent of the 5 . Pro-forma Financial Statements able to demonstrate, upon independent preemptive rights of stockholders 6 . Proposed Loan Documents and verifiable authentication, that it has 6 . other proper provisions to govern 7 . Resume of Manager, Directors and assets in excess of one hundred billion the business and affairs of the Officers dollars ($100,000,000,000), retail banks Commonwealth bank as desired by The Finance Company or Non-Bank must obtain insurance of its deposits from the incorporators . Lender License may be renewed annually the Federal Reserve’s Federal Deposit Three (3) copies of the proposed for a fee of three hundred dollars ($300) .

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 15 Defining and Registering business Entities

ENVIRONMENTAL HEALTH inspection, BEH inspectors will request to driver’s license, alien registration card or PERMITS see the following: CNMI Business License; other form of picture identification) . An Certificate of Occupancy issued by the employment contract may also be required Sanitary Permits Department of Public Works; and Food to verify employment date with business/ Sanitary permits are required of Handler Certificate(s), if required . employer . Upon receiving normal or good numerous types of businesses to enforce If the business is a health clinic, health screening results, BEH will contact health and sanitation standards and to applicants and ask them to bring into the prevent the outbreak or transmission of inspectors will request to see a CNMI Business License, Certificate of Occupancy, BEH Office their Certificate of Completion diseases . The following types of businesses for Workshop Participation . The Food must obtain sanitary permits from the and a valid license issued by the Medical Profession Licensing Board . Handler Certificate will be issued once the Bureau of Environmental Health (BEH): certificate fee is paid . Food handlers must Businesses that pass the inspection 1 Businesses. that sell, serve, give their certificates to their employers to must visit BEH, pay the applicable fee, and distribute, store or process food or be kept on file at the place of employment . pick up the Sanitary Permit . The Sanitary drinks (i .e . cafeterias, restaurants, During sanitation inspection, employers Permit is valid for one (1) year . The Bureau bars, taverns, retail stores, will be asked to show these certificates . conducts regular site visits throughout the wholesalers, roadside vendors, ice The Food Handler Certificate is valid for year to ensure compliance with minimum plants, butcher shops, etc .) one (1) year and must be renewed forty-five health and sanitation standards . 2 .Businesses that provide room (45) days before expiration . Food Handler Certificate accommodations (i .e . hotels, motels, For more information on Sanitary Food handlers at eating and drinking apartments, boarding houses, staff Permits, categories, fees, health and establishments must obtain the Food housing, room rentals, etc .) sanitation standards and Food Handler’s Handler Certificate before working at such 3 . Shops or clinics where there is Certificates, please visit or contact Bureau establishments . contact between employees and of Environmental Health: patrons (i .e . beauty shops, barber Application Requirements and Division of Public Health shops, massage parlors, pedicure Procedures Department of Public Health and manicure shops, tattoo Food handlers may pick up the P .O . Box 500409 C .K . shops, dental clinics, eye clinics, Food Handler’s Certificate Application at Navy Hill, Saipan, MP 96950 acupuncture clinics, sanitariums, any CNMI licensed clinic . At the clinic, Tel .: (670) 664-4870/4848/4898-Saipan; and other health clinics) applicants undergo health screening . 532-9461-Rota; 433-0395-Tinian 4 .Institutions (i .e . schools, dayPhysicians performing examinations Fax: (670) 664-4871-Saipan; 532-0955- care centers, gyms, correctional will provide BEH the Food Handler Rota; 433-9247-Tinian facilities, etc .) Screening Examination (Report) . After the 5 . Vehicles used for the commercial examination, food handlers should contact transport of foods or drinks (i .e . Foreign Currency Exchange the BEH to schedule attendance at the License pizza delivery vehicles, road-side Food, Hygiene and Sanitation Workshop . vending vehicles, wholesale delivery Upon completion of the workshop, the To engage in the business of buying vehicles) applicant/workshop attendee will receive and selling foreign exchange, businesses 6 . Commercial vessels and ships a Certificate of Completion for Workshop must first obtain a Foreign Currency (FX) 7 . Swimming pools Participation . Dealer License from the Banking Section . 8 . Establishments that sell cosmetics The Food Handler’s Certificate All FX dealers must appoint an agent . The and cosmetic devices Application must be completed and annual license fee for FX dealers is three New businesses must visit the BEH submitted to a BEH representative at hundred dollars ($300) while that for agents to schedule and request for an inspection the workshop . When submitting the is thirty dollars ($30) . of the business . In two weeks or less, application, the applicant must bring BEH will conduct an inspection . At the a photo identification (i .e . passport, 16 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Defining and Registering business Entities

Remittance Dealer License year 10 . Payment fee of three hundred dollars To engage in the business of receiving 2 . If a foreign insurer or a domestic ($300) for a Certificate of Authority money for the purpose of sending it to reciprocal insurer, an Agreement 11 .Articles of Incorporation and By- another country, businesses must first and Power of Attorney appointing laws (for review) obtain a Remittance Dealer License the Insurance Commissioner as its 12 . Copy of applicant’s rate schedules or from the Banking Section . There is a fifty attorney to receive service of legal rate plans to be implemented in the thousand dollars ($50,000) security deposit process . Attach to the Agreement CNMI requirement to obtain this license . An and Power of Attorney a certified 13 . Two (2) specimen copies of each insurance bond may be substituted for copy of a resolution adopted by policy form to be used in the CNMI . the cash requirement . Those accepting the insurer’s board of directors All policies and provisions therein remittance transactions must be licensed consenting to the appointment of shall be printed in a type of which as Remittance Agents . The annual fee for a the Insurance Commissioner to the face is not smaller than two- Remittance Dealer License is three hundred receive service of legal process . points . Evidence of domiciliary dollars ($300) and thirty dollars ($30) for a 3 . If a foreign or alien insurer, an state’s approval is required . Remittance Agent License . Agreement and Power of Attorney 14 . Original Certificate of Good Standing appointing a resident agent to from the state of domicile Investment Company/Broker-Dealer receive service of legal process . The or Advisor/Agent License general agent must be authorized A. Registering the Corporation Prior to providing investment advice to appoint subagents and solicitors . Within ninety (90) days of the granting or services in the CNMI, a company or For alien insurers, this general of the Certificate of Authority, the insurer individual must first obtain a license agent must also be authorized to must register the corporation with the from the Director of Banking . Investment countersign on all policies . Registrar of Corporations . The Registrar companies and/or agents must show 4 . If an alien insurer, a copy of the of Corporations will require evidence of proof of registration with the Securities appointment and authority of its U . payment of the filing fee of one hundred Exchange Commission and the National S . manager, certified by its proper dollars ($100) with the CNMI Treasury . Association of Securities Dealers . The fee officer B. Insurance License for the Investment Company/ Broker-Dealer 5 . If a foreign or alien insurer, a After obtaining a Certificate of License is three hundred dollars ($300) certificate from the public official Authority, the general agent must submit to while that for the Investment Advisor/ of its state or country of domicile the Office of the Insurance Commissioner Agent License is fifty dollars ($50) . showing that it is duly organized an Application for Insurance License . The and is authorized to transact the fee for the Insurance License is seventy- classes of insurance proposed to be The Insurance License five dollars ($75) . The application must transacted Certificate of Authority be accompanied by an Appointment of 6 . An Affidavit of Compliance with the General Agent form which authorizes the Insurers must first obtain a Certificate Commonwealth Insurance Act of Insurance Commissioner to appoint sub- of Authority and an Insurance License 1983 agents and solicitors, accept service of from the Insurance Commissioner 7 . Certificate from proper official of legal process, and countersign insurance before transacting business in the security deposit policies . The Insurance License is valid for Commonwealth . To file for a Certificate 8 . Copy of report of the last examination one (1) year and may be renewed annually . of Authority, a completed Application for made of the insurer certified by the C. Sub-agent, Broker, Surplus Lines Certificate of Authority must be submitted insurance supervisory official of its Broker and Adjuster Licenses to the Insurance Commissioner along with state of domicile or entry into the The Insurance Section also licenses the following: U .S . sub-agents (appointed by general agent), 9 . Other documents or stipulations as 1 . A copy of Annual Statement as of brokers, surplus lines brokers, and the commissioner may require the 31st of December of the prior adjusters . Each of these licenses requires Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 17 Defining and Registering business Entities a fee of one hundred dollars ($100) except to transact life insurance must keep and Fax: (670) 664-3067-Saipan; 532-9510- for the Sub-Agent License with a fee of maintain minimum reserves for its life Rota; 433-0678-Tinian seventy-five dollars ($75) . The licenses policies based upon Standard Ordinary Website: www .commerce .gov .mp are good for one (1) year and renewable Mortality Tables acceptable to the annually . Insurance Commissioner and interest at GAMING AND AMUSEMENT D. Solicitor License three and a half percent (3 .5%) per annum . OPERATION LICENSES The minimum reserve requirement must The application for solicitors or persons Lottery License be maintained and kept on deposit in any that sell insurance and collect premiums The CNMI Department of Finance bank(s) or other financial institution(s) is different from that for general agents, licenses and supervises lottery operations . in the CNMI approved by the Insurance sub-agents, brokers, surplus lines brokers, For license application requirements, Commissioner . Deposits must be legal and adjustors . A completed Application fees and regulations governing lottery money of the United States or allowable for Solicitor License must be submitted operations please contact: along with an Appointment of Solicitor investment securities, or any combination certificate . The Solicitor License is valid for of such money and securities . CNMI Department of Finance one (1) year and renewable annually . The G. Mandatory Participation in P .O . Box 5234 CHRB filing fee for the Solicitor License is fifty Assigned Risk Plan Capitol Hill, Saipan, MP 96950 dollars ($50) . CNMI Public Law 11-55 requires Tel .: (670) 664-1100/01-Saipan; 532-1040- all motor vehicle insurance providers to E. Capital Requirements for Domestic Rota; 433-0202-Tinian participate in the Assigned Risk Plan . The and Alien Insurers Fax: (670) 664-4871-Saipan; 532-9461- Assigned Risk Plan provides minimum All Insurers Except Life Insurers: Rota; 433-9247-Tinian All domestic insurers must have a minimum motor vehicle liability insurance to persons or parties unable to obtain such coverage . paid-in capital of twenty-five thousand Gaming and Amusement Machine Participating insurance providers are called dollars ($25,000) for the transaction of any License by the Insurance Commissioner to provide one (1) class of insurance authorized other The CNMI Department of Finance also persons or parties applying under the Plan than life insurance . For each additional class regulates the commercial operation of with the minimum coverage . Insurance of insurance to be transacted other than gaming and amusement machines . License providers must complete the Application life insurance, there must be an additional fees for the different types of machines are for Insurance Provider License and pay a paid-in capital of fifteen thousand dollars given in Table 3 .2 ($15,000) . Insurers having paid-in capital of fee of $250 to be part of the Assigned Risk Poker machines must be maintained one hundred thousand dollars ($100,000) Plan . in a room separate from all other activities may transact any or all classes of insurance H. Reporting Requirements of the business . Minors are not permitted authorized, except life insurance . The paid- All insurers must submit on or before to enter this room . In addition, alcoholic in capital requirement must be paid in April 1 annual financial statements, a form beverages and other intoxicants are not cash . Life Insurers: Domestic insurers approved by the National Association of allowed in the room . proposing to transact or transacting life Insurance Commissioners, as of the 31st insurance must have a minimum paid-in day of December of the prior year . capital of one hundred thousand dollars For more information on obtaining a ($100,000) in addition to the minimum Banking or an Insurance License, contact: paid-in capital required for other classes of insurance . As with all other insurers, the CNMI Department of Commerce paid-in capital requirement must be paid in Caller Box 10007 cash . Capitol Hill, Saipan, MP 96950 F. Reserve Requirements for Life Tel .: (670) 664-3064-Saipan; 532-9478- Insurers Rota; 433-0853-Tinian All domestic life insurers authorized 18 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Defining and Registering business Entities

Table 3.2 Website: www .tiniangamingcommission .com signed by the applicant . Depending Source: Commonwealth Code: Title 4, Section 1503 on the type of license being applied Rota Casino Gaming and Control for, the Board may also require: Gaming & Amusement Machines Commission 5 . A verification of license License Fees 6 . A copy of current license Coin-operated phonographs $150 PROFESSIONAL LICENSES 7 . Evidence of thirty (30) hours of Continuing Education (CE) Coin-operated CD players $150 Architects, engineers, land surveyors, completion over the past two (2) Other coin-operated, music $150 real estate appraisers, plumbers, years producing machines electricians, carpenters, harbor pilots, 8 . Certified copy of current CNMI Kiddie-ride machines $25 barbers and beauticians obtain professional employment contract licenses or certification from the Board Pachinko machines $6,000 9 . Certified copy of previous nursing of Professional Licensing . Application Pinball machines $150 employment over the past nine (9) requirements and associated fees vary by Poker machines $12,000 months Pool tables $150 trade and type of license/certificate . For specific details, contact: Video games $150 The Board will evaluate the credentials Board of Professional Licensing of applicants wishing to take the National For more information on application P .O . Box 2078 Council Licensure Examination (NCLEX) . If and operation requirements for gaming and House #1336 the applicant meets all the requirements Capitol Hill, Saipan, MP 96950 to sit for the NCLEX exam, as approved amusement machines, contact: Tel .: (670) 234-4811/4809 by the Board, the applicant will be sent a CNMI Department of Finance Fax: (670) 234-4813 Candidate Bulletin Booklet for registration P .O . Box 5234 CHRB of the actual NCLEX exam . Registration Capitol Hill, Saipan, MP 96950 Nursing License must be forwarded with a non-refundable Tel .: (670) 664-1100/01-Saipan; 532-1040- Nurses must receive licensure from examination fee of two hundred dollars Rota; 433-1600-Tinian the Commonwealth Board of Nurse ($200) to Hopkins, Minnesota . Fax: (670) 664-1115-Saipan; 532-0473- Examiners before practicing nursing in the Rota; 433-1615-Tinian For more information on the CNMI . Registered and practical nurses requirements to become a licensed may be licensed by examination or by Casino License registered or practical nurse, contact: endorsement . A completed Application for Casino operations are legal in Tinian (Nursing) License must be submitted along and Rota only . Casinos are licensed and with: Commonwealth Board of Nurse Examiners regulated by the Tinian and Rota Casino P .O . Box 501458 1 . Official transcripts from high school Gaming Control Commissions, respectively . Capitol Hill, Saipan, MP 96950 and nursing school The Commissions may be reached at the Tel .: (670) 664-4810/4812 2 For. foreign applicants, birth following: Fax: 664-4813 certificate and marriage certificate, Tinian Casino Gaming and Control if applicable Commission Table 3.3 3 . Payment of the non-refundable P .O . Box 143 Nursing Licenses - Processing Fees processing fee . Fees should be made Tinian, MP 96952 License Type Examination Endorsement payable to the CNMI Treasurer . Tel .: (670) 433-9292 Registered Nurse $80 $60 See Table 3 .3 for the fees for the Fax: (670) 433-9290 different types of licenses . Practical Nurse $60 $40 E-mail: contact@tiniangamingcommission . 4 . Two (2) 2” x 2” photograph taken Source: Commonwealth Board of Nurse Examiners com within the last six months . The Application by Medical Profession License bottom of the photograph is to be

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 19 Defining and Registering business Entities

Medical Profession Licensing Board TAXICAB OPERATION LICENSES death of any one (1) person in any Acupuncturists, chiropractors, clinical one (1) accident; psychologists, dental nurses/hygienists, Persons interested in engaging in a 2 . Minimum coverage of one hundred dentists, medical laboratory technologists, taxicab operation must be licensed by the thousand dollars ($100,000) for optometrists, pharmacists, physical Department of Commerce . Persons who bodily injury or death of more therapists, radiologists and all other intend to operate a taxicab must complete than one (1) person in any one (1) healing arts practitioners must first obtain an Application for Certification of Fitness accident; licensing from the Medical Profession and Taxicab Operator’s Identification 3 Minimum. coverage of thirty Licensing Board before practicing in the Card: The completed application must be thousand ($30,000) for injury to or CNMI . submitted along with: destruction of property in any one Application requirements vary by 1 . Criminal Record Search (1) accident; and profession . At minimum, applicants should 2 . Traffic Record Search 4 . Uninsured motorists’ coverage in expect to submit the following: 3 . Copy of Passport and/or Birth the above amounts . Certificate 1 . Completed application; 4 . Valid CNMI Driver’s License Taxicab Vehicle Application 2 . One (1) 2” x 2” photo . Photo must be 5 . Three (3) 2” x 2” photos (current, not Owners of vehicles to be used as signed by applicant and current; more than 6 mos . old) taxicabs must submit a completed Taxicab 3 . Applicable fee made payable to the 6 . Health Certificate Vehicle Application along with: CNMI Treasury; 7 . Sketch of Location 4 . Notarized copy of school diploma in 1 . Current Vehicle Registration 8 . Copy of Bureau of Motor Vehicles area of practice; 2 . Current Insurance Policy Taxi Operator’s License 5 . Notarized copy of current license 3 . Current Business License 9 . Receipt of Payment - $25 .00 paid to and name of issuing authority; 4 . Listing of Operators for review CNMI Treasury 6 . Name, telephone, and address and approval . See Taxicab Vehicle Taxi Rates of previous employer . Persons Application Procedure Overview Passenger rates for taxi operations appear interested in engaging in such and Requirements . Also see Taxicab in Table 3 .4 practices are urged to contact the Vehicle Application Required Medical Profession Licensing Board Table 3.4 for more information: For more information on taxicab Taxicab Rate Schedule Medical Profession Licensing Board operations, contact: Flag down rate $2 .50 c/o Commonwealth Health Center Division of Enforcement and Compliance P .O . Box 500409 C .K . Every additional 1/4 mile thereafter CNMI Department of Commerce Capitol Hill, Saipan, MP 96950 $0 75. Caller Box 10007 C .K . Tel . (670) 664-4811 Waiting time, every 2 minutes $0 .75 Capitol Hill, Saipan, MP 96950 Fax: (670) 664-4813 Extras, heavy or large items $1 .00 Tel . (670) 664-3014-Saipan; Source: CNMI Department of Commerce Fax (670) 664-3093-Saipan CNMI Attorney License To be licensed to practice law in the Mandatory Insurance Coverage Foreign INVESTMENT CNMI, contact: Taxicab owners must have general TINVESTMENT INCENTIVES CNMI Bar Association or public liability insurance issued by P .O . Box 504539 qualified insurance companies licensed Committed to attracting new Saipan, MP 96950 to do business in the CNMI . Minimum investment, the CNMI government Tel .: (670) 235-4529 requirements are as follows: passed CNMI Public Laws 12-32 creating the Qualifying Certificate Program . The Fax: (670) 235-4528 1 . Minimum coverage of fifty thousand program reduces business start-up and Website: www .cnmibar .net dollars ($50,000) for bodily injury or operating costs .

20 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Defining and Registering business Entities

Qualifying Certificate (QC) Program EB-5 Immigrant Investor For detail information the USCIS webiste The QC Program grants tax relief by Visa Description at http://www .uscis .gov/portal/site/uscis/ way of rebates and/or abatements to USCIS administers the Immigrant qualified investors . The QC Program targets Investor Program, also known as “EB-5,” E-2 Visa: CNMI-Only Investor specific industries including: franchise created by Congress in 1990 to stimulate The CNMI-Only Investor (E-2) visa restaurants; water parks; aquariums; the U .S . economy through job creation and classification allows foreign, long-term cultural centers; theme parks; resort capital investment by foreign investors . investors to remain lawfully present in hotels and condominiums; golf courses; Under a pilot immigration program first the CNMI through December 2014 while convention centers; dinner theaters; special enacted in 1992 and regularly reauthorized they resolve their immigration status . This events such as conventions and sporting since, certain EB-5 visas also are set classification is intended to help as the events; CNMI based airlines and other aside for investors in Regional Centers CNMI transitions from the CNMI permit aviation related activities; manufacturing designated by USCIS based on proposals system to U .S . immigration laws . or processing of high technology products; for promoting economic growth . internet related businesses and/or All EB-5 investors must invest in a Obtaining E-2 CNMI Investor businesses engaged in internet commerce . new commercial enterprise, which is a Status (E2C) Qualified investors may receive up to commercial enterprise: Initial Application one hundred percent (100%) in rebates • Established after Nov. 29, 1990, or You must file your initial Form I-129 and/or abatements on CNMI taxes • Established on or before Nov. 29, petition and Supplement E with USCIS including business gross revenue taxes, 1990, that is: before January 18, 2013 . USCIS will reject income taxes, capital gains taxes, excise 1 . Purchased and the existing business initial petitions filed after that date . taxes, developer infrastructure taxes, is restructured or reorganized in alcoholic beverage taxes for periods of such a way that a new commercial up to twenty-five (25) years . Impact on enterprise results, or Length of Stay existing industries, location of proposed 2 . Expanded through the investment Your E-2 CNMI investor status is activity(ies), creation of new employment, so that a 40-percent increase in the valid in the CNMI initially for two years . import substitution, and impact on net worth or number of employees If you have a spouse or minor children consumer prices are among the many occurs accompanying or following to join you in factors considered in the determination of Commercial enterprise means any the CNMI, they will have the same validity benefits granted . for-profit activity formed for the ongoing period as you . An E-2 CNMI Investor status conduct of lawful business including, but is extendable in 2 year increments ending on December 31, 2014 . For more information about the QC not limited to: program, contact: • A sole proprietorship • Partnership (whether limited or Extending Your Stay Commonwealth Development Authority general) To apply for an extension of stay, you P .O . Box 502149 • Holding company must file a new Form I-129 and Supplement Saipan, MP 96950 • Joint venture E with the required evidence and fee . Tel .: (670) 234-6245/6293/7145-Saipan; • Corporation 532-9408-Rota; 433-9203-Tinian • Business trust or other entity, which Fax: (670) 234-7144 or 235-7147-Saipan; may be publicly or privately owned General Qualifications for an 532-9407-Rota; 433-3690-Tinian This definition includes a commercial E-2 CNMI Investor E-mail: administration@cda gov. .mp enterprise consisting of a holding company To qualify for E-2 CNMI Investor status, Website: www .cda .gov .mp and its wholly owned subsidiaries, provided you must: that each such subsidiary is engaged in a • Have been admitted to the CNMI for-profit activity formed for the ongoing with a long-term investor visa conduct of a lawful business . under CNMI immigration law before Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 21 Defining and Registering business Entities

November 28, 2009 an investment of at least $50,000 CNMI Investor Statuses that Do • Have continuously maintained • A foreign investor with a foreign Not Qualify for E-2 Status residence in the CNMI under long- investment certificate issued by the You are not eligible for an E2C visa term investor status CNMI based upon an investment of if you held one of the following CNMI • Currently maintain the investment(s) at least $100,000 in an aggregate investor statuses under CNMI Immigration that formed the basis for the CNMI approved investment in excess of law: long-term investor status $2 million or at least $250,000 in a • The sub-category of the retiree • Otherwise be allowed to enter single approved investment investor specifically limited to the United States under the U .S . • A retiree investor over the age of Japanese retirees Immigration and Nationality Act 55 years who was issued a foreign • Short-term business entry permits (INA) NMI Investor Statuses that retiree investment certificate based • Regular-term business entry permits Qualify for E2C Status upon a qualifying investment in an You qualify for E-2 CNMI Investor approved residence in the CNMI For more information; please visit status if you held one of the (but not including the 2-year non- www .uscis .gov following long-term CNMI investor renewable retiree investor program statuses under CNMI Immigration limited to Japanese nationals) law: • A long-term business investor who was issued a long-term business certificate by the CNMI based upon

N I A T I N Join the

C H E A RC MB E Nestled in the middle of the beautiful Mariana Islands chain, Tinian Island is a quaint 39sq mile ER OF COMM tropical beauty which hosts the only active legalized US Casino Gaming Jurisdiction in the Paci c. Welcoming approximately 90,000 tourists per year as well as hosting several large US Military Training Exercises, Tinian oers a wide variety of business opportunities. Join the other 130 members of the Tinian Chamber of Commerce today so you can have access to limitless business opportunities and be a part of the rapid growth of Tinian’s economy. For more information visit http://www.tinianchamber.com/ Invest in Tinian!

Telephone: 670-433-CNMI (2664) P.O. Box 520800 FAX: 670-433-4FAX (4329) Tinian, MP 96952-0800 www.TinianChamber.com 22 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. What sums up a Responsible Retailer? No Selling Not Getting Advocating Tobacco & Fined up to for Healthy Alcohol to $1000 Children Minors + +

Responsible = Retailer

For more information, please contact Mr. RIcky Itibus, Commonwealth Healthcare Corporation’s Substance Abuse Prevention Technician at 234-8950 ext. 8724 CNMI Department of Commerce Statistical Act of 1990(PL 7-35)and formally given its authority through theCommonwealth Statistics e Central Division (CSD) was StatisticsCentral Division (CSD) agents and advisers. broker-dealers,securities and investment exchangecurrency nance dealers, companies, money transmitters, pawnbrokers, foreign CNMI-chartered and banks companies, trust is division licensesand regulates Banking Oce.SBDC Registrar of Corporation, and CNMI the of Commerce, includes Insurance, Banking, other oces under Oceof the Secretary the compliance, and workers comp. In addition, alcohol and tobacco, enforcement and (5) divisions; economic development, statistics, e Department of Commerce consists of ve or retention. Commonwealth economy through jobcreation statistics, accomplishes and stimulates the forcollection measurement of economic vital practices, consumer protection, and data of economic solutions, promoting fair business alike. goals and e set objectives areas inthe and prosperity business to all and hte people, continuous enhancement of economic growth Commerce is for better the CNMIthrough the e vision of CNMIDepartment the of investment, investment, infrastructure research grants, and jobdevelopment. Economy by promoting afavorable business environment, attract private capital toward developing sound solutions that would help stimulate Commonwealth the e mission and goals of CNMIDepartment the of Commerce are geared fundamentally conducted over years. the CPI, and and censuses other surveys EconomicCensus Reports, Indicator Reports, Mariana Islands includes which Decennial the U.S. Federal Government on Northern the information gathered by CNMIand the both main role is compiling statistical all established on August division’s 9,1991.Our Commonwealth Insurance Act of 1983.Along pursuant to 4CMC, Division 7,of the by statute to regulate insurance the industry, Departmentthe of Commerce, is empowered e Oceof Insurance the Commissioner of Insurance “Recycling Act Reporting of 2006.” enforcement of Public aspect Law 15-36or the and recently(BOT), was tasked with the and Measures (OWM), Bureau the of Taxicabs threefolds; it consists of Oceof the Weights e Enforcement and Compliance Division is Enforcement &Compliance Associated States. card holders or citizens of Freely the owners/managers that are UScitizens, green existing and/or potential business small management. is available isto service all counseling areas inall of business providesSBDC free, condential, one-to-one CNMI SBDC adjusters, solicitors and surplus lines. and foreign insurers, sub-agents, brokers, respective licensed general agentsalso for alien business Commonwealth, inthe oce the has Commissioner has allowed to transact with numerous the insurers that Insurance the expenses includingexpenses rehabilitation. injuries, death, disability, and medical from catastrophic the of eects work related protection for employers both and employees e WCC program provides nancial (WCC) Workers’ Compensation Commission Registrar of Corporation. required to annual le reports with the proprietorships, other business all are types Commonwealth. With exception the of sole corporations and partnerships inthe other records or to documents pertaining certicates,custody papers, all statements, or responsible for issuing, receiving, and holding e Oceof Registrar the of Corporation is Registrar

Defining and Registering business Entities

Association licensed and registered Persons interested in any of CDA’s 4. Operating a under the laws of the CNMI actually financing options must submit the CDA doing business in the CNMI for at Loan Application along with the following: Business least two (2) years . 1 . Business plan 6 . Another prerequisite for obtaining a 2 . Land documents (Land title) loan from CDA are three (3) letters of 3 . Property map, if surveyed by a GETTING LOANS, FINANCIAL denial from local banks . The denial Certified Surveyor ASSISTANCE letters must be for loan applications 4 . Specific Use of Fund Statement for the same business purpose and 5 . Declination letter from at three (3) Aside from personal savings or loans amount being applied for at CDA . banks on the proposed project from family, friends, or investors, banks 6 . Financial Statements for last two (2) are the most common source of financing CDA is a lender of last resort; the years, if applicable for businesses . The private banks currently requirement of such letter keeps CDA from 7 . List of Collateral being offered operating in the CNMI include Bank of competing with local lending institutions . 8 . Project Income and Expenses for Guam, Bank of Hawaii, First Hawaiian one (1) year Bank, Bank Pacific, Bank of Saipan and City Direct Loan Program 9 . Personal Financial Statement for Trust Bank . Each institution has its own The Direct Loan Program offers each applicant specific requirements for qualification and agricultural, marine, and commercial loans 10 .Resume terms for approval . to qualified applicants . The maximum term 11 . Authorization form to obtain credit Contact the banks for detailed on direct loans is thirty (30) years . The information information on service offerings . interest rate on agricultural and marine 12 . Payment of credit report fee of ten loans is four and a half percent (4 .5%), dollars ($10) per applicant fixed, while the rate on commercial loans 13 . Tax Compliance from the Division of Government Financing is seven percent (7%), fixed . Revenue and Taxation Eligible business may also secure 14 If . a corporation, Corporate financing from the government . CDA Loan Guarantee Program Resolution to Borrow, Articles of has two (2) loan programs available for CDA leverages its limited resources by Incorporation, By-laws, Annual businesses establishing, expanding, or soliciting the participation of commercial Report and Certification from the modernizing facilities in the CNMI: lending institutions in funding business Registrar of Corporations that • Direct Loan Program ventures for local entrepreneurs . Under the Corporation is in good order • Loan Guarantee Program guarantee program, the bank approves and 15 If. a partnership, Partnership To be eligible to apply under any of disburses the loan which CDA can guarantee Agreement CDA’s loan programs, applicants must be up to ninety percent (90%) of the total term 16 . Personnel requirement for proposed one of the following: loan or revolving line of credit . The banks project 1 . Commonwealth citizens that are currently doing business with CDA 2 . U .S . citizens or nationals with two are Bank of Guam, Bank of Hawaii, and For more details on the types of (2) years continuous residency in the Bank of Saipan . The maximum term on loan financing options available or application CNMI guarantees is twenty (20) years . Interest requirements, contact: 3 . Partnership or association wholly rates are set at the bank’s prevailing rate . Commonwealth Development Authority owned by CNMI citizens Guaranteed loans and revolving lines of P .O . Box 502149 4 . Corporation organized under the credit facilities are evaluated and must Saipan, MP 96950 laws of the CNMI with fifty-one meet the same underwriting criteria and Tel .: (670) 234-6245/6293/7145-Saipan; percent (51%) capital stock owned eligibility requirements as direct loans with 532-9408-Rota by CNMI citizens CDA . Fax: (670) 234-7144 or 235-7147-Saipan; 5 . U .S . Corporation, Partnership or 532-9407-Rota 26 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. OPerating A Business

E-mail: administration@cda gov. .mp (SSN), one must submit a completed and P .O . Box 501304 Website: www .cda .gov .mp signed Form SS-5, Application for a Social Gualo Rai Commercial Center Security Card with all required evidence to Gualo Rai, Saipan, MP 96950 Opening a Bank Account the Social Security Administration Office Tel .: (670) 664-8500-Saipan; 532-3102-Rota; at the Marina Heights II Building in Puerto 433-3169-Tinian Before opening a company bank Rico. Fax: (670) 664-8540-Saipan; 532-3103-Rota; account, the company must first register 433-3169-Tinian to conduct business in the CNMI . After For more information on obtaining an TIN, being registered with the Registrar of contact: COASTAL RESOURCES Corporations and issued a business license Division of Revenue and Taxation The Coastal Resources Management from the Business License Office, an CNMI Department of Finance Office (CRMO) works to protect, conserve authorized company representative would P .O . Box 5234 CHRB and manage the CNMI’s coastal resources . visit a new accounts officer at the bank 1st Floor, Joeten Commercial Building where the company wishes to open an Dandan, Saipan, MP 96950 account . Tel :. (670) 664-1000-Saipan; 532-1040- Jurisdictions and Areas of Particular Rota; 433-1600-Tinian Concern (APCs) Documents required to open a Fax: (670) 664-1015-Saipan; 532-0473- CRMO has jurisdiction over the business account include: Rota; 433-1615-Tinian Commonwealth Territorial Sea which • Business License encompasses the area extending twelve • Social Security Number (SSN) or PROTECTING THE ENVIRONMENT & (12) miles beyond the CNMI’s archipelagic Taxpayer Identification Number PRESERVING RESOURCES baseline and all inland areas . This jurisdiction (TIN) excludes U .S . Government land . A proposed • Identification of the Owner The CNMI also works hard to protect its project wholly or partially within an APC, or • Signature Card environment and preserve its resources for which constitutes a Major Sitting, or which the safety and health of residents and future has a direct and significant impact on an APC For Corporations (additional documents) enjoyment of surroundings and resources . requires a CRM permit . There are five (5) • Articles of Incorporation This chapter highlights the different agencies APCs: • Bylaws of the Corporation charged with protecting and preserving the • Certificate of Incorporation CNMI’s land, air, water, coastal resources, 1 . Shoreline the area between the mean fish and wildlife resources and historic and high water mark or the edge of a For Partnerships (additional documents) archaeological resources . shoreline cliff and one hundred fifty • Partnership Agreement (150) feet inland Environmental Quality 2 . Lagoon and Reef the area extending For more information on obtaining a SSN, seaward from the water line to the contact: Given its mandate to protect the outer slope of the reef Social Security Administration environment and public health, the Division 3 . Wetlands and Mangrove those areas 2nd Floor, Marina Heights II Building of Environmental Quality (DEQ) develops, which are permanently or periodically Puerto Rico, Saipan, MP 96950 implements, and maintains programs that covered with water and within which Tel .: (670) 234-6683-Saipan; 532-9421- eliminate or minimize threats to the CNMI’s can be found species of wetland or Rota; 433-9421-Tinian land, air and water . For more information mangrove vegetation Fax: (670) 234-3022-Saipan on human health and environmental 4 . Port and Industrial those land Website: www .ssa .gov/employer/ regulations, permits and its required forms and water areas surrounding the and documents, please visit or contact commercial ports of Saipan, Tinian NOTE: Division of Environmental Quality: and Rota To obtain a Social Security Number 5 . Coastal Hazards the areas identified

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 27 OPerating A Business

as coastal flood hazard zones by the 3 . Shoreline Permit Application for 9 . Map of the vicinity Federal Emergency Management Photographic Activities 10 . Topographic survey map with ten (10) Agency (FEMA) 4 . Lagoon & Reef Permit Application for foot contour; NOTE: Marine Sport Activities 11 . Elevation plans of the project including The territorial limits of CRMO include the 5 . Port & Industrial Permit Application a side profile of the project; area extending twelve (12) miles beyond for Drydock Activities 12 . Title documents to all real property and the CNMI’s archipelagic baseline and inland 6 . Shoreline and/or Lagoon & Reef submerged lands including leases areas. Permit Application for Scientific from appropriate parties; Research A pre-application meeting 13 . Affidavit or declaration made under Major Sittings with CRMO and/or CRM Regulatory penalty of perjury that the application Any proposed project which has the Agencies or review of plans will is a statement of truth by the principal potential to directly and significantly impact determine if a CRM permit is required or authorized agent; and coastal resources within the CNMI . Major and if so, what type of permit is 14 . Environmental Assessments to Siting projects could also be located within an required for the proposed project . include: APC . Such projects vary in scope and size and • Project summary, justification and can include proposed projects with potential The Permit Process size; for significant adverse effects on submerged Applicants must file an original and • Description of existing environment lands, groundwater recharge areas, cultural eight (8) copies of the application along of site including vegetation, wildlife, areas, historic or archaeological sites and with applicable exhibits and attachments . land uses, historic and cultural properties, designated conservation and For Major Siting projects, the following are resources, soil, geology, topography, pristine areas, or uninhabited islands, required: weather, and air quality; sparsely populated islands, mangroves, 1 . Copies of construction plans including • Description of socio-economic reefs, wetlands, beaches and lakes, areas CNMI certified engineering and characteristics of the project including of significant interest, recreational areas, architect designs and floor plans; income and employment, education, limestone, volcanic and cocos forest, and 2 . Plans for excavation, earthmoving infrastructures, law enforcement, endangered or threatened species or marine and storm water control; fire protection, hospital, and medical mammal habitats . 3 . A map showing the distance of all facilities; proposed structures from mean high • Discussion of alternatives to the Minor Permits water and wetlands, as shown on proposed project size/design and A Minor Permit is required for projects APC maps, if applicable; how the preferred alternative was that are not identified as Major Sitings and 4 . Estimated costs for all improvements selected; are located within an APC . Such projects affixed to the property; • Description of the direct, indirect, include the construction of picnic shelters, 5 . Copies of CNMI and Federal and cumulative environmental and landscaping and other beautification permits including business license, socio-economic effects, both positive activities and strip clearing for surveying submerged lands lease, and other and negative, which may result from and construction . necessary permits; the project i .e . air and water quality, 6 . Names of adjacent property owners noise and dust levels, sedimentation and erosion, plant and wildlife habitat Types of Applications and copies of letters sent to them and populations, infrastructure CRMO has the following types of notifying them of the proposed capacity (short and long term); applications: project; 7 . Adjacent property description; • Description of how impacts have 1 . General Permit Application (for a Major 8 . Estimates of daily peak demand for been avoided or minimized and how Siting project or any other project utilities including water and electricity any unavoidable impacts will be located in an APC) and projected usage of utilities and mitigated . 2 . Shoreline Permit Application (for general other infrastructure; activities within Shoreline APC) 28 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. OPerating A Business

A non-refundable application fee is FISH AND WILDLIFE RESOURCES Affairs to ensure the protection of historic, assessed on all applications . Major Siting archaeological, architectural and cultural permit applications are reviewed by CRMO Proposed developments that involve resources . To fulfill its duties, the Division and CRM Regulatory Agencies . hunting, catching or gathering of fish and of Historic Preservation reviews public and wildlife or other activities that may impact CRMO and CRM Program Agencies private land-use activities . The Division of these resources should consult with the have up to sixty (60) days to issue a final Historic Preservation works closely with Department of Lands and Natural Resources’ decision on Major Siting applications . Some the Division of Environmental Quality and Division of Fish and Wildlife to determine if Minor Permits require a decision within ten the Coastal Resources Management Office . any permits are required for such activities . (10) working days by CRMO while other Permits are not issued by these offices if the Minor Permits require a decision within sixty The Division of Fish and Wildlife has three Division of Historic Preservation finds that (60) days by CRMO and CRM Regulatory (3) Wildlife Conservation/Critical Habitat the use of subject lands will adversely affect Agencies . Major Sitings require a public Areas: 1) Bird Island Wildlife Conservation valuable historic property . hearing . Written comments on projects may Area, 2) Kagman Wildlife Conservation The types of activities requiring historic be submitted to CRMO to be made part of the Area, and 3) Marpi Commonwealth Forest . preservation review include: permit record and considered in the permit The islands of Guguan, Farallon de 1 Projects. requiring Earthmoving decision . Parjaros, Asuncion and Maug are Wildlife Permits - projects requiring For more information on Coastal permits, Sanctuaries making it illegal to take wildlife mechanized vegetation clearing and permit types and fees, please visit or contact species from these islands . Except for cases earthmoving activities including Coastal Resources Management Office: of emergency, landing on these islands must removing vegetation with a backhoe, first be approved by the Director of Fish and payloader or bulldozer, sand or soil Coastal Resources Management Office Wildlife . mining; Office of the Governor 2 . Projects requiring Coastal Resource Susupe, Saipan, MP 96950 Persons interested in obtaining fish Management (CRM) Permits – projects Caller Box 10007 and wildlife permits must fill out a Fishing, that are large-scale or with activities Tel .: (670) 664-8300/8301-Saipan; 532-0464- Harvesting and Hunting Permit Application within the shoreline, lagoons, reefs, Rota; 433-0494-Tinian and pay the applicable fees . wetlands, mangroves, port/industrial Fax: (670) 664-8315-Saipan; 532-1000-Rota; For more information on Fish and areas, coastal flood zones, and other 433-0638-Tinian Wildlife permits, fees and period of validity, sensitive environmental areas; Website: www .crm .gov .mp please visit or contact Division of Fish and 3 . Projects which receive federal funding Wildlife: or require federal permits; Projects near coastal waters or wetlands Division of Fish and Wildlife 4 . Projects which will affect historic may also require permits from the U .S . Department of Lands and Natural Resources structures or buildings . Army Corps of Engineers . For information P .O . Box 10007 on whether special permits are required for Lower Base, Saipan, MP 96950 For assistance in filling out the specific projects, contact: Tel .: (670) 664-6000-Saipan; 532-6000-Rota; application for Historic Preservation Review Department of the Army 433-9298-Tinian or for further information on the historic Pacific Ocean Division Fax: (670) 664-6060-Saipan; 532-0520-Rota; preservation review process, contact: Corps of Engineers 433-3152-Tinian Division of Historic Preservation Guam Operations Office Department of Community and Cultural Room 302 San Ramon Building HISTORIC AND ARCHAEOLOGICAL Affairs 115 San Ramon Street RESOURCES Saipan, MP 96950 Agana, Guam 96910 Public Law 3-39, the Historic Tel .: (670) 664-2120-Saipan; 532-0818-Rota; Tel .: (671) 472-8091 Preservation Act of 1982, created the 433-0220-Tinian Division of Historic Preservation under the Fax: (670) 664-2139-Saipan; 532-0818-Rota; Department of Community and Cultural 433-0220-Tinian Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 29 Paying CNMI Taxes 5. PAYING CNMI Earnings Tax BUSINESS GROSS REVENUE TAX Earnings from sources within the Business gross revenues sourced CNMI not derived from employment or within the CNMI are subject to the TAXES business are subject to the Earnings Tax . Business Gross Revenue Tax (BGRT) . BGRT This section provides a general summary The Earnings Tax is applicable to gains taxes must be paid on a monthly basis . of CNMI taxes except for employees’ from the sale or lease of personal property Returns are due on or before the last day payroll and income taxes . CNMI and winnings from gambling, lottery, raffle of the month following the end of the employees’ payroll and income taxes are or other similar earnings month . Special rates apply to agricultural discussed in Chapter 6, Administering producers, fisheries, manufacturers, Employees . Individuals, businesses or Table 5.1 wholesalers, and financial institutions . organizations are urged to consult with Northern Marianas Territorial Manufacturers that export products from the Department of Finance’s Division Income Tax (NMTIT) Rebate Amounts the CNMI are exempt from the BGRT . BGRT of Revenue and Taxation or other tax for Corporate and Non-Corporate rates are shown in Tables 5 .3 and 5 .4 . authority for specific information or other Taxpayers Table 5.3 tax advice . Source: Division of Revenue & Taxation Business Gross Revenue Tax Rates Rebate Base Rebate Amount $0 - $5,000 No Tax Northern Marianas < $20,000 - 90% of rebate the base $5,001 - $50,000 1 .5% of amount over $0 Territorial Income Tax $20,001 - $100,000 - $18,000 plus - 70% $50,001 - $100,000 2% of amount over $0 (NMTIT ) of the rebate base over $20,000 $100,001 - $250,000 2 .5% of amount over $0 The NMTIT mirrors the U .S . Internal > $100,000 - $74,000 plus 50% of the $250,001 - $500,000 3% of amount over $0 Revenue Code except where incompatible rebate base over $100,000 $500,001 - $750,000 4% of amount over $0 with the Covenant to Establish a Source: Division of Revenue and Taxation activities. Any Earnings Tax paid is allowed as a non-refundable Over $750,000 5% of amount over $0 Commonwealth of the Northern Mariana credit against the NMTIT. Earnings Tax rates are Islands in Political Union with the United provided in Table 5.2. Table 5.4 States of America or CNMI tax laws . Special Business Gross Revenue Tax Sole proprietorships, partnerships, Table 5.2 Rates corporations and other taxable entities Earnings Tax Rates Source: Division of Revenue and Taxation Source: Division of Revenue and Taxation Annual must report and pay income taxes on CNMI- Industry Rate Gross Revenues Rate sourced income . The NMTIT is assessed Agricultural Producers & Fisheries Annual Gross Earnings Rate at graduated rates . Rate tables may be $0 if annual gross revenue is $0 - obtained from the Division of Revenue and $0 - $1,000 No Tax $1,666 65. Taxation or from the U S. . Internal Revenue $1,001 - $5,000 2% of amount over $0 1% of annual gross revenue if annual Service’s (IRS’s) Publication 15, Circular $5,001 - $7,000 3% of amount over $0 gross revenue is > $1,666 .65 E, and Employer’s Tax Guide . Pursuant to $7,001 - $15,000 4% of amount over $0 the Covenant and CNMI tax laws, taxable $15,001 - $22,000 5% of amount over $0 Manufacturers & Wholesalers entities subject to the NMTIT are entitled $22,001 - $30,000 6% of amount over $0 $0 if annual gross revenue is $0 - $5,000 to a rebate on their NMTIT tax liability . The $30,001 - $40,000 7% of amount over $0 rebate ranges from fifty to ninety (50-90%) 1 .5% of annual gross revenue if annual $40,001 - $50,000 8% of amount over $0 depending on the amount of tax paid . See gross revenue is $5,001 - $50,000 Over $50,000 9% of amount over $0 Table 5 1. . 2% of annual gross revenue if annual gross revenue is > $50,000

30 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Paying CNMI Taxes GENERAL EXCISE TAX Environmental Beautification purposes relating to CNMI are assessed a Tax user fee . The user fee is three and seven- Goods imported into the CNMI for tenths of a percent (3 .7%) of the gross value business purposes or for personal use CNMI Public Law 13-42 recently of the merchandise to be certified . This fee exceeding the amount allowed under the established the Environmental is due and payable to the Commonwealth law are subject to the General Excise Tax . Beautification Tax to be assessed on all Treasury upon certification . The General Excise Tax rate varies for each imported consumer goods . The tax is set As with the General Excise, type of commodity . The General Excise Tax at the rate of .42 percent ad valorem and Environmental Beautification, Fuel, is collected by the Division of Customs at is collected by the Division of Customs at Beverage Container taxes, the user fee is ports of entry . Rates are given in Table 5 .5 . ports of entry . assessed and collected by the Division of NOTE: “Consumer goods” means “products, goods Customs . Table 5.5 and materials including but not limited to vehicles, General Excise Tax Rates retail products, garment material, construction Source: Division of Revenue and Taxation; CNMI material and all goods that have any form of Alcoholic Beverage/Bar Tax Public Law 13-38 packaging.” Businesses licensed to serve alcoholic Commodity Rate beverages for consumption on the premises Agricultural products 1% ad valorem Fuel Tax of the establishment are assessed a tax of Beer and malt beverages $ 02/oz. . Sellers and distributors of liquid and ten percent (10%) of the total charge for any Boats/yachts not exceeding $500,000 aviation fuel are subject to fuel taxes . The alcoholic beverage sold or consumed at the 5% ad valorem rate for liquid fuel is fifteen cents ($ .15) per establishment . The Alcoholic Beverage/ Cigarettes $1 75/20. cigarettes gallon while that for aviation fuel is three Bar Tax must be filed with the Division of CNMI produced goods 1% retail price percent (3%) ad valorem . Revenue and Taxation on a monthly basis Construction equipment, materials and and paid before the twentieth (20th) day of This fuel tax does not apply to sales of machinery 3% ad valorem the succeeding month . Cosmetics 17 25%. ad valorem liquid fuel to the Commonwealth Utilities Distilled alcoholic beverages $ .18/oz . Corporation with certain provisions . The Food stuffs 1% ad valorem Fuel Tax is assessed and collected by the Hotel Occupancy Tax Hygiene products 1% ad valorem Division of Customs at ports of entry . Transient occupants of a room Jewelry 5 75%. ad valorem or rooms in a hotel, lodging house, or Leather goods 5 .75% ad valorem Beverage Container Tax similar facility in the CNMI are assessed Luxury boats/yachts in excess of an occupancy tax of ten percent (15%) $500,000 5 .75% ad valorem Soft drink and alcoholic beverage of the amount charged or paid for the Luxury passenger vehicles in excess of containers are subject to the Beverage accommodations . Owners or managers of $30,000 5 .75% ad valorem Container Tax . A tax of five cents ($ .05) hotels, lodging houses or similar facilities Passenger vehicles not exceeding is imposed on soft drink and alcoholic are responsible for collecting the tax . The $30,000 5% ad valorem beverage containers . The Beverage tax must be collected at the time rent is Perfumes 23% ad valorem Container Tax is assessed and collected by paid or charged . The tax must be reported Precious metals/stones 5 75%. ad the Division of Customs at ports of entry . and remitted to the Division of Revenue valorem and Taxation before the twentieth (20th) Prescription drugs and medicines 1% ad User Fee day of the succeeding month . valorem Soft drinks $ 06/12. oz . Persons or businesses requiring Tobacco products 60% invoice price certification from the Department of Gaming Machine Jackpot Tax Finance for country of origin or other Wine and sake $ .05/oz . A tax of twenty percent (20%) is All others 5% ad valorem assessed on all jackpot winnings from

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 31 Paying CNMI Taxes poker machines pachinko machines, slot machines, pachinko slot machines, and similar gaming devices . Game room establishments are responsible for collecting the tax and keeping all records, and may be held liable for uncollected taxes . Talafofo, Saipan P.O. Box 504101 Saipan MP 96950 NOTE: “Jackpot winnings” are winnings where the machine pays out one thousand dollars ($1,000) or more. Variety of local & native made products Inquire Tourists/Guest Package available Entities exempt from Paying CNMI Taxes • Free Ranging (No Admission Fee) • Coconut Drink • Souvenir Non-profit organizations are subject to applicable CNMI taxes • Koconutville Post Card * Prices negotiable unless the organization applies for and is granted tax-exempt status by the Division of Revenue and Taxation . Organizations granted tax- - Botanical/Fruit Plantation exempt status is not exempt from taxation on taxable income from - Mini Petting Zoo (Local/Native animals) unrelated business activities . Foreign sales corporations (FSCs) are exempt from the BGRT and NMTIT . In order to qualify for such tax Home to the tree of life exemptions, FSCs must apply for an FSC license with the Secretary Throughout the Paci c Islands, the Coconut tree is one of the of Finance . most important trees because of the many purposes and use All FSC license applications must submit with the following: it has. Along with some Asian countries, it is know as the a) a copy of the company’s articles of incorporation and bylaws; b) "Tree of Life". This tree has served so many dierent a copy of its most recent election to be treated as an FSC or, if it cultures from generation to generation by providing the has not yet made an election, a pledge to furnish the Secretary of following uses, food & drink, medicine, shelter, Finance a copy of its election within ninety (90) days after making jewelries, clothing, furniture and more... the election; c) information on its resident director and the location Please Contact: Tony 670 989-8676 or Rose 670 989-2440 • Email: [email protected] of its Commonwealth office; and d) its $500 license fee . Although exempt from the BGRT and NMTIT, foreign sales corporations must file informational tax returns with the Division of Revenue and Taxation . Informational returns must be submitted along with schedules and worksheets at the same time the FSC’s tax returns are filed with the U .S . Internal Revenue Service . The Division of Revenue and Taxation may require additional information substantiating qualifications for foreign sales corporation treatment under the U .S . Internal Revenue Code .

For more information on the CNMI tax system, contact: Division of Revenue and Taxation CNMI Department of Finance P .O . Box 5234 CHRB 1st Floor, Joeten Commercial Building Dandan, Saipan, MP 96950 Tel .: (670) 664-1000-Saipan; 532-1040-Rota; 433-1600-Tinian Fax: (670) 664-1015-Saipan; 532-0473-Rota; 433-1615-Tinian

For information on the General Excise, Fuel, Environmental Beautification, and Beverage Container taxes or the User Fee, contact: Division of Customs CNMI Department of Finance P .O . Box 5234 CHRB Puerto Rico, Saipan, MP 96950 Tel .: (670) 664-1601-Saipan; 532-9455-Rota; 433-1600-Tinian Fax: (670) 664-1615-Saipan; 532-0473-Rota; 433-1615-Tinian

32 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. administering employees

For general guidance or technical The CNMI government’s equal 6. Administering assistance on the ADA, contact: employment opportunity program may be CNMI Council on Developmental reached at: Disabilities CNMI Equal Employment Opportunity Employees P .O . Box 502565 Program Saipan, MP 96950 P .O . Box 5153 CHRB COMPLYING WITH EQUAL Tel . (670) 664-7000 Office of Personnel Management EMPLOYMENT OPPORTUNITY LAWS Fax: (670) 664-7030 2nd Floor, J .M . Building E-mail: gddc@cnmiddcouncil .org Garapan, Saipan, MP 96950 Federal equal employment opportunity Website: www .cnmiddcouncil .org Tel .: (670) 234-6925/6958/8036-Saipan; laws are applicable in the CNMI . Applicants 532-9480-Rota; 433-0032-Tinian to and employees of most employers are THE AGE AND DISCRIMINATION IN Fax: (670) 234-1013-Saipan; 532-9482- protected by the following federal laws: EMPLOYMENT ACT OF 1967 (ADEA) Rota; 433-0031-Tinian The ADEA protects individuals who are forty (40) years of age or older from TITLE VII OF THE CIVIL RIGHTS ACT OF COMPLYING WITH EMPLOYEE discrimination on the basis of age in hiring, 1964 (TITLE VII) SAFETY AND HEALTH PROTECTION promotion, discharge, compensation, terms, Title VII prohibits discrimination in conditions or privileges of employment . The LAWS hiring, promotion, discharge, pay, fringe ADEA applies to employers with twenty benefits, job training, classification, In addition to equal employment (20) or more employees . referral and other aspects of employment protection, federal law also provides on the basis of race, color, religion, sex for job safety and health protection for and national origin . Title VII’s prohibitions THE EQUAL PAY ACT OF 1963 (EPA) workers . The Occupational Safety and against sex discrimination also covers The EPA prohibits wage discrimination Health Act of 1970 provides for a workplace sexual harassment and pregnancy based between men and women in substantially environment free from recognized hazards discrimination . Title VII’s employment equal jobs within the same establishment . to safety and health, such as exposure to requirements are applicable to employers The EPA applies to employers with one toxic chemicals, excessive noise levels, with fifteen (15) or more employees . (1) or more employees . The above Equal mechanical dangers, heat or cold stress, Employment Opportunity laws prohibit or unsanitary conditions . All employers retaliation against individuals who file and employees must comply with rules and TITLE I OF THE AMERICANS WITH charges of discrimination or participate in regulations enforced by the Occupational DISABILITIES ACT (ADA) OF 1990 proceedings under these laws . The U .S . Safety and Health Administration under Effective July 26, 1992, Title I, Equal Employment Opportunity Commission the U .S . Department of Labor . Special rules Employment under the ADA prohibits (EEOC) enforces these four laws . apply for work environments involving discrimination against qualified individuals hazardous substances . with disabilities, because of such disabilities (including conditions such as For additional information, contact: The Act applies to all employers cerebral palsy, epilepsy, multiple sclerosis, U S. . Equal Employment Opportunity and their employees for fields such as AIDS, heart disease, and diabetes), in Commission manufacturing, construction, long shoring, regard to job application procedures, San Francisco District Office agriculture, law and medicine, charity and the hiring and discharge of employees, 901 Market Street, Suite 500 disaster relief, organized labor and private employee compensation, advancement, job San Francisco, CA 94103 education, and religious groups to the training, and any other terms, conditions, Tel :. (415) 356-5042 extent that they employ workers for secular or privileges of employment . The ADA’s Fax: (415) 356-5126 purposes . employment requirements are applicable OSHA sets standards and conducts to employers with fifteen (15) or more workplace inspections to assure employers employees . Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 33 administering employees are in compliance with the standards . can be obtained from: Division of Labor It is the responsibility of employers to Occupational Safety and Health CNMI Department of Labor familiarize themselves with standards Administration, Saipan Office, U S. . Caller Box 10007 applicable to their establishments or Department of Labor Capitol Hill industries . Among the standards imposed Tel :. (670) 323-1201/322-3758 Capitol Hill, Saipan, MP 96950 to all industry sectors are: Occupational Safety and Health Tel .: (670) 236-0900/0907-Saipan; 532- 1 . Access to Medical Records - requires Administration, San Francisco Office, U .S . 9429-Rota; 433-3700-Tinian employers to grant employees Department of Labor Fax: (670) 236-0991-Saipan; 532-9468- access to any of their medical 71 Stevenson Street Rota; 433-3707-Tinian records maintained by the employer San Francisco, CA 94105 and to any records the employer Technical Assistance Line: 1-800-475-4019 COMPLYING WITH THE WORKERS’ maintains on the employees’ Complaint Line: 1-800-475-4020 COMPENSATION INSURANCE LAW exposure to toxic substances; Publications Line: 1-800-475-4022 Workers’ compensation insurance 2 . Personal Protective Equipment - became mandatory in the CNMI in 1989 requires that employers provide ESTABLISHING WAGES AND HOURS with the enactment of CNMI Public Law employees, at no cost to employees, 6-33 . The law compensates and protects with protective equipment (i .e . T he Minimum Wage and Hour Act sets employees suffering personal injury by protective helmets, eye protection, wage and hour standards for employees accident arising out of and in the course of hearing protection, hard-toed shoes, in the CNMI . The current minimum wage employment . At the same time, it protects special goggles, and gauntlets) rate in the CNMI is $5 .55 per hour with an employers by limiting their exposure to designed to protect against hazards; incremental increase of $ .50 per year over lawsuits for on the job injuries or deaths . 3 . Hazard Communication - requires a period of years until the CNMI minimum While the compensation for the loss of manufacturers and importers of wage was equal to the federal minimum wages is limited to forty thousand dollars hazardous materials to conduct a wage, which currently is $7 .25 per hour . ($40,000), there is no set limit for medical hazard evaluation of the products compensation . they manufacture or import . If the Minimum wage applies only if there It is important that employers observe product is found to be hazardous is FLSA coverage the following requirements: under the terms of the standard, The first question any employer 1 . Secure workers’ compensation containers of the material must be needs to ask: Is my business or individual insurance coverage upon hiring of appropriately labeled and shipment employee “covered” by the FLSA . The employee(s) and continue coverage of the material to a new customer minimum wage law is an integral part at all times; must be accompanied by a material of the Fair Labor Standards Act (FLSA), 2 . Obtain a Workers’ Compensation safety data sheet . Receiving a comprehensive statute providing Certificate of Clearance prior to employers must train employees, protection for workers in the workplace . application for or renewal of a CNMI using the material safety data sheet Therefore, if your business or your specific Business License; they receive, to recognize and avoid employees are not “covered: by the FLSA, 3 . Post a Notice of Insurance Coverage the hazards the materials present; the minimum wage law does not apply . form in a conspicuous place advising 4 . Record-keeping - requires employers Employees working for small independently employee(s) of their insurance covered by OSHA with more than ten owned retail or service businesses may not protection and the name of the (10) employees to maintain OSHA be covered . insurance provider; and specified records of job-related 4 . File report(s) of injury (ies) with the injuries and illnesses . For more specific information on wages Workers Compensation Commission and hours or other labor management within ten (10) calendar days of the Additional information and guidelines issues, contact: date they are informed of injury(ies) . on employee safety and health protection

34 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. administering employees

For more information on the workers’ to the Commonwealth of the Northern (CW visa) . This new visa classification compensation law and its requirements, Mariana Islands (the CNMI) for the first enables employers in the CNMI to apply please time in history . The transition period for for temporary permission to employ contact: implementation of U .S . immigration law nonimmigrant workers who are otherwise in the CNMI began on November 28, 2009, ineligible to work . For more information Workers’ Compensation Commission and is scheduled to end on December 31, about this category go to the Nonimmigrant P .O . Box 501247 2014 . Worker in the CNMI Web page . Capitol Hill, Saipan, MP 96950 E-Verify Now Available in the CNMI Please note: Premium Processing Tel .: (670) 664-8024-Saipan; 532-9516- Employers in the Commonwealth of Service is currently suspended for all Rota; 433-3733-Tinian the Northern Mariana Islands (CNMI) may Form I-129 filings that request a change Fax: (670) 664-8074-Saipan; 532-9486- now enroll in E-Verify . E-Verify can verify or a grant of status for workers within the Rota; 433-3863-Tinian the employment eligibility of all newly CNMI . Premium Processing Service is not hired employees, including employees with available for I-129CW filings . FINDING EMPLOYEES CNMI-Only Transitional Worker (CW-1) or Temporary Worker Categories: H-1B E-2 CNMI Investor (E-2C) nonimmigrant Companies have several ways to and H-2B statuses . Enrolling in E-Verify is easy . The promote job vacancies or seek qualified Foreign nationals in H-1B and H-2B E-Verify website has a variety of resources candidates; they may announce vacant classifications who are admitted to perform to help you prepare . Visit the Getting positions in local newspapers, radio labor and services in the CNMI and Guam Started page of the E-Verify website stations or on television . Companies are exempt from the H-1B cap and H-2B to explore enrollment resources . The may also work with business or industry cap from November 28, 2009 to December Commonwealth of the Northern Mariana associations or the Department of Labor’s 31, 2014 . To qualify for this exemption, Islands (CNMI) page on I-9 Central provides Division of Employment Services to find job your prospective employer’s petition must additional Form I-9 guidance for employers candidates . include a Labor Condition Application (LCA) hiring individuals in the CNMI . listing employment or services in the CNMI USCIS also announces the nationwide and/or Guam only . For more information on employee hiring launch of Self Check, the free online service The spouse and qualifying children of requirements, contact: that allows individuals in the United States an H worker may apply for H-4 “dependant Division of Employment Services to check their own employment eligibility of an H worker” classification . There is no CNMI Department of Labor Working in the CNMI cap for H-4 classification . Family members Caller Box 10007 All foreign workers must have seeking H-4 classification may apply Capitol Hill, Saipan, MP 96950 permission to work legally in the United directly at the U .S . Embassy or Consulate Tel .: (670) 236-0926/0928-Saipan; 532- States and in the CNMI . Each employment for a visa or (if lawfully present in the CNMI) 9448-Rota; 433-3707-Tinian category has different requirements for may apply to USCIS for a grant of status . Fax: (670) 236-0994-Saipan; 532-9468- admission, conditions and authorized Once that status has been granted, future Rota; 433-3730-Tinian periods of stay . It is important that you requests to extend that status must be filed www .marianaslabor .net follow the terms of your admission and with USCIS using Form I-539, Application Foreign workers visa . For more information about temporary to Change or Extend Nonimmigrant Status . and permanent worker categories, visit our Please see the H-1B and H-2B Web OBTAINING DOCUMENTATION FOR Working in the US Web page . pages for more information about these PERMITS FOR ENTRY CNMI-Only Temporary Workers temporary worker categories . On May 8, 2008, the Consolidated If you do not qualify for any of Employment Authorization Verification Natural Resources Act (CNRA) was the established temporary worker Beginning on Nov . 28, 2011, employers signed into law . The CNRA extends categories, you may be eligible for the must use the standard Form I-9 for all new most provisions of U .S . immigration law CNMI-Only Transitional Worker category

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 35 administering employees hires and reverifications in the CNMI . Travel for Foreign Nationals Present PROVIDING EMPLOYEE BENEFITS Parole in the CNMI in the CNMI: Aside from wages and salaries, The term “parole,” when used by If you need to leave the CNMI for any employers use employee benefits to attract immigration officials, means “permission reason, you will need an appropriate visa and retain solid, capable employees . A to be in the United States .” Parole allows from a U .S . embassy or consulate abroad good benefits package not only allows people living and working in the CNMI in order to return to the CNMI, unless the employer to remain competitive in the with a valid CNMI permit to continue to you have been granted advance parole by labor market, it also fosters good employee live and work in the CNMI after returning USCIS . morale . Benefit plans may include: health from Guam or other parts of the United Go to the U .S . Department of State and other insurance, retirements plans, States . There is no fee for this request . website for information about: paid time off and training . The following groups in CNMI may be • How to obtain a visa eligible for a grant of parole: • Visa wait times for each U.S. • CNMI permanent residents Consular post abroad Health and Other Insurance Benefits • Immediate relatives of CNMI To get more information about Sickness, disability and death can be permanent residents immigration in the CNMI you may: emotionally and economically devastating to an employee and his or her family . • Immediate relatives of citizens of • Call the National Customer Service Employees, therefore, consider health the Compacts of Free Association Center at 1-800-375-5283 . This and other insurance benefits an important States (FAS): toll-free number has automated part of a solid group plan . Many health • Children of CW-1 workers who are information and live assistance 24 insurance plans offer medical, dental and 18 years old or are 17 years old and hours a day, 7 days a week . During vision coverage . Other forms of financial will be turning 18 THIS (2011/2012) regular business hours, customers protection generally part of group plans school year, who are studying in who need more information or include short- and long-term disability a secondary or high school in the assistance can be transferred to a coverage and life insurance . Disability plans CNMI customer service representative . provide income replacement for employees • Individuals Waiting for a Decision In the CNMI, live assistance is that are unable to work due to illness or on a Nonimmigrant Employment- available Tuesday through Saturday, accident . Life insurance provides death Based Petition, such as an H-1B 6 AM to 11 AM local time . benefits to the insured’s dependents . A • Caregivers of Critical Medical of • Email us at [email protected]. listing of insurance providers may be found Special Need Individuals gov . in the Yellow Pages of local telephone and • Immediate Relatives of U.S. Citizens • Find the status of your case by using business directories . and Certain Stateless Individuals the “My Case Status” tool . • Make an appointment to visit the Go to the ‘Requesting Parole for the USCIS Application Support Center Retirement Benefits First Time in the CNMI’ or ‘Extending Parole (ASC) at TSL Plaza in Saipan . Walk- Retirement plans encourage saving in the CNMI’ Web pages for more guidance ins for emergencies only, will be seen for the future . 401(k), 403(b), pension, about how to apply for parole . after people with appointments . and other types of retirement plans allow Grant of Status More information on U .S . immigration- employees to set aside portions of their In most cases, an individual in the related and travel issues can be found at monthly income to save for the future and United States without an INA based on the right under “Non-USCIS Links .” defer taxes . Employers offering such plans nonimmigrant status needs to leave the W: http://www .uscis .gov/cnmi often match employee contributions . country in order to obtain a nonimmigrant classification . However, exceptions can Paid Time Off be made to individuals in the CNMI with Paid time-off give employees breaks CNMI permits or parole authorization . from work . Vacation days, holidays,

36 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. administering employees personal leave, and sick leave are all of Revenue and Taxation on Deposit Table 6.1 considered paid time off . Employers are Form 500-WH . The filing schedule varies, Wage and Salary Tax Rates encouraged to set clear policies on paid depending on the amount of tax liability . Annual Gross Wages Rate time off and to include such provisions in Employers should contact the Division of $0 - $1,000 No Tax employee contracts . Revenue and Taxation or other tax authority $1,001 - $5,000 2% of amount over $0 to ascertain the filing schedule for the $5,001 - $7,000 3% of amount over $0 business . FILING EMPLOYMENT TAXES $7,001 - $15,000 4% of amount over $0 Employers are responsible for the $15,001 - $22,000 5% of amount over $0 timely filing of employees’ withheld CNMI Northern Marianas Territorial Income $22,001 - $30,000 6% of amount over $0 and federal income taxes and payroll taxes . Tax (NMTIT) $30,001 - $40,000 7% of amount over $0 Because of the complex nature of income EMPLOYEE PAYS; EMPLOYER $40,001 - $50,000 8% of amount over $0 and payroll taxes, it is highly recommended WITHHOLDS . Although payment of that businesses consult with or retain the the NMTIT is the responsibility of the Over $50,000 9% of amount over $0 services of certified public accountants or employee, the employer withholds the tax reputable accounting firms . For a listing and remits it to the Division of Revenue For more information on the NMTIT and of accountants and accounting firms, look and Taxation on behalf of the employee . WST taxes, contact: in the Yellow Pages of local telephone The NMTIT is assessed at graduated Division of Revenue and Taxation directories . rates on the “adjusted gross income .” The CNMI Department of Finance NMTIT rates may be obtained from the P .O . Box 5234 CHRB Division of Revenue and Taxation or from 1st Floor, Joeten Commercial Building CNMI EMPLOYMENT TAXES the U S. . Internal Revenue Service’s (IRS’s) Dandan, Saipan, MP 96950 Companies with employees must Publication 15, Circular E, Employer’s Tax Tel .: (670) 664-1000-Saipan; 532-1040- have each employee complete a Form Guide . Pursuant to the Covenant and CNMI Rota; 433-1600-Tinian W-4, Employee’s Withholding Allowance tax laws, individuals subject to the NMTIT Fax: (670) 664-1015-Saipan; 532-0473- Certificate . Form W-4, the Employee’s are entitled to a rebate on their NMTIT tax Rota; 433-1615-Tinian Withholding Allowance Certificate, is used liability . The rebate ranges from fifty to to determine how much income tax to ninety percent (50-90%) depending on the U.S. FEDERAL GOVERNMENT withhold from employees’ wages . amount of tax paid . EMPLOYMENT TAXES Employers must file Form W-2, Wage and Tax Statement, to report wages paid to Federal Insurance Contributions Act each employee from whom Income, Social Wage and Salary Tax (WST) (FICA) Security, or Medicare taxes were withheld EMPLOYEE PAYS; EMPLOYER EMPLOYER WITHHOLDS AND or Income tax would have been withheld WITHHOLDS . In addition to the NMTIT, EMPLOYER MATCHES . The FICA if the employee had claimed no more an annual tax is imposed on all wages establishes a system of old-age, survivors, than one withholding allowance or had and salaries from sources within the disability, and hospital insurance . The FICA not claimed exemption from withholding CNMI . As with the NMTIT, the employer consists of the Social Security tax and on Form W-4, Employee’s Withholding withholds the WST and remits it to the the Medicare tax . Employers withhold the Allowance Certificate . Division of Revenue and Taxation on behalf Social Security and Medicare taxes for the of the employee . The WST is assessed at employee; employers also make matching Employers must file Form W-3, graduated rates on annual gross wages . tax payments of the same amounts to the Transmittal of Wage and Tax Statements . See Table 6 .1 . IRS . The Social Security tax applies to Employers are responsible for regularly wages up to a maximum wage base . The depositing employees’ withheld income Generally, any WST paid on wages Medicare tax, on the other hand, applies and payroll taxes with the Division of sourced within the CNMI is allowed as a to all wages with no maximum wage base . Revenue and Taxation . These withholdings nonrefundable credit against the NMTIT . The current wage base limit and tax rates payments must be remitted to the Division Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 37 administering employees may be obtained from Publication 15, (216) 516-2000 - (Hours: Mon-Fri; 6:00 a .m . Number (Social Security Number, Employer Circular E, Employer’s Tax Guide . Table 6 .2 - 2:00 a m. . EST) Identification Number, or Individual illustrates the FICS tax rates . Fax: (215) 516-2555 Taxpayer Identification Number) in order to use the online application . Table 6.2 For more information or instructions on You can also apply by telephone Federal Insurance Contributions Act reporting Social Security and Medicare service by calling the Business & Specialty (FICA) Tax Rates taxes, contact: Tax Line at (800) 829-4933 . The hours of Source: Publication 15, Circular E, Employer’s Tax Social Security Administration operation are 7:00 a m. . - 7:00 p .m . local Guide; Internal Revenue Service 2nd Floor, Marina Heights II Building time, Monday through Friday . Apply By Puerto Rico, Saipan, MP 96950 Tax Rate FAX or by mail by submitting a completed Tel :. (670) 234-6683-Saipan; 532-9421- Social Security Tax Form SS-4 . Rota; 433-9421-Tinian Employee 6 .2% on first $87,000 of For more information, please visit Fax: (670) 234-3022-Saipan wages http://www .irs .gov/Businesses/Small- Website: www .ssa .gov/employer/ Employer 6 .2% on first $87,000 of Businesses-&-Self-Employed/How-to- wages An Employer Identification Number Apply-for-an-EIN Self-employed 12 4%. on first $87,000 of (EIN) is also known as a Federal Tax net earnings Identification Number, and is used to Medicare Tax identify a business entity . Generally, businesses need an EIN . You may apply Employee 1 .45% on all wages for an EIN in various ways, and now you Employer 1 .45% on all wages may apply online . This is a free service Self-employed 2 .9% on net earnings offered by the Internal Revenue Service. You must check with your state FICA tax payments are made either to make sure you need a state number or monthly or semi-weekly depending on charter . the amount owed during a four-quarter look-back period . Payments may be made How to Apply for an EIN electronically using the Electronic Federal Applying for an EIN is a free service Tax Payment System (EFTPS) . To enroll in offered by the Internal Revenue Service . EFTPS, visit www .eftps .gov or call (800) Beware of Web sites on the Internet that 945-8400 or (800) 555-4477 . charge for this free service . Payments may also be made by Apply Online delivering Form 8109, Federal Tax Deposit The Internet EIN application is the Coupon, with payment to an institution preferred method for customers to apply authorized to accept federal tax deposits, for and obtain an EIN . Once the application or mailing directly to: is completed, the information is validated during the online session, and an EIN is Internal Revenue Service issued immediately . The online application Philadelphia, PA 19255-0215 process is available for all entities whose principal business, office or agency, For information on when tax deposits are or legal residence (in the case of an due to the federal government or for any individual), is located in the United States other information related to the FICA tax, or U .S . Territories . The principal officer, contact: general partner, grantor, owner, trustor etc . Internal Revenue Service must have a valid Taxpayer Identification Tel .: (800) 829-1040 - Toll free 38 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Physically setting up an office or facility

Tel :. (670) 234-3751/3752/3757-Saipan; showing the scale, size and location of the 7. PHYSICALLY 532-9431-Rota; 433-9245-Tinian new construction and all existing structures Fax: (670) 234-3755-Saipan; 532-9430- on the site and the distance from lot lines Rota; 433-0599-Tinian and the established street grades . The Site SETTING UP Plan must be drawn in accordance with an accurate boundary line survey . In the case AN OFFICE OR Complying with the Building of demolition, the Site Plan must show Safety Code all construction to be demolished and the location and size of all existing buildings to FACILITY The CNMI Building Safety Code (“the remain on the site . As with the requirement Code”) was established by CNMI Public to file Drawings and Specifications, the Law 6-45 . The Code provides standards for Leasing Land Building Safety Official may waive the the location, design, material, construction, requirement for filing of Site Plans if the At present, only persons of CNMI enlargement, maintenance, use, occupancy, work involved is minor in nature . Adequate descent may own land in the CNMI . and moving of buildings . Before constructing details of structural, mechanical and Nonindigenous persons, however, may or renovating a building, installing heating electrical work including computations, lease private land for up to fifty-five appliances, electrical fixtures or outlets, a stress diagrams and other technical data (55) years . Numerous private firms offer building permit must be obtained from the are also required at time of filing of the assistance in locating real property . Building Safety Office of the Department application . Engineering drawings and Individuals or parties interested in of Public Works . The building permit computations must bear the signature of leasing land are advised to consult with process ensures adequate maintenance of a CNMI licensed professional engineer a reputable real estate agent and a CNMI buildings, protection of the health, safety or architect . Also required for a complete licensed attorney . A list of real estate firms and welfare of people and compliance with application package is a statement of may be found in the Yellow Pages of local applicable regulations . Before applying for estimated total project cost and evidence telephone and business directories . a building permit, developers must first of tax credit . Total project cost includes secure all other applicable permits from all costs for architectural and engineering Public land is also available for lease the Division of Environmental Quality, if private land cannot be identified and design, professional services, on-site Division of Historical Preservation, Coastal construction materials, and labor including secured for a project or development . The Resources Management Office, U .S . Army Department of Public Lands is the agency construction management, administration Corps of Engineers, or other federal or and supervision costs . responsible for administering public land local government agency regulating the leases . Under the law, public land may particular activity . Payment of the applicable Plan- be leased for up to twenty-five (25) years . Review Fee, the Building Permit Fee, and Lease extensions of not more than fifteen Applications for Building Permit/ other applicable fees must be made to the (15) years may be granted with approval by Plan Review/Floodplain must be Building Safety Official before applications three fourths (3/4) of the members of the submitted along with at least two (2) copies are accepted . Upon finding conformity CNMI Legislature . Leases of more than five of Drawings and Specifications drawn to with all building safety requirements and (5) hectares of public land for commercial scale with sufficient clarity and dimensions applicable laws, the Building Safety Official use purposes must be approved by a to show the nature and character of the will issue the building permit . majority of members of the Legislature . work to be performed . Should the quality of materials essential for compliance with The building permit and approved the Safety Code, specific information must Drawings and Specifications must be For more information on the leasing of be given to establish such quality . Consult kept at the worksite at all times . Work at government land, contact: with the Building Safety Official for format the site may begin after the permit holder Department of Public Lands and size requirements for Drawings and posts an Inspection Card in a conspicuous P .O . Box 500380 Specifications . place on the premises and in a position to 2nd Floor, Joeten Commercial Center allow the Building Safety Official or his/her Dandan, Saipan, MP 96950 Developers must submit a Site Plan authorized representative to make entries .

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 39 Physically setting up an office or facility

The building can be occupied or used, in Building Safety Division terminals, depots); whole or in part, only after the Certificate CNMI Department of Public Works 8 . Places of public display or collection of Occupancy is issued . The Certificate of Caller Box 10007 (e g. ., museums, libraries); Occupancy must remain posted indefinitely 2nd Floor, Joeten Commercial Building 9 . Places of recreation (e .g ., parks, in a conspicuous place . Gualo Rai, Saipan, MP 96950 zoos, amusement parks); Tel :. (670) 235-5827/5828-Saipan; 532- 10 . Private schools; The Developer Infrastructure Tax 3870-Rota; 433-9255-Tinian 11 .Social service centers (e g. ., day The Developer Infrastructure Tax is Fax: (670) 235-6346; 532-3099-Rota; care centers, food banks, homeless a two percent (2%) tax assessed on the 433-9242-Tinian shelters, adoption agencies); total project cost for new commercial 12 .Places of exercise or recreation developments . The Building Safety Official COMPLYING WITH PUBLIC (e .g ., gyms, health spas, bowling reviews all applications to determine if ACCOMMODATIONS alleys, golf courses) . the tax is applicable to the project . If so, REQUIREMENTS OF THE official will issue the developer a voucher AMERICANS WITH DISABILITIES All entities that fall under any of the for payment . Developers subject to the ACT above categories have been subject to the tax are also assessed a nonrefundable nondiscrimination requirements of Title III Title III, Public Accommodations since January 26, 1992, regardless of the administrative fee equal to the building of the Americans with Disabilities Act permit fee . Developers are liable for the number of employees as such entities . For (ADA) prohibits private entities from general guidelines or technical assistance total tax based on this final total project discriminating on the basis of disability cost less any previous payments or tax on nondiscrimination requirements of Title in places of public accommodation . Title III of the ADA, contact: credits . The Certificate of Occupancy will III requires all newly constructed and not be issued by the Building Safety Official altered places of public accommodation CNMI Council on Developmental until the total tax is collected . and commercial facilities to be designed Disabilities and constructed in such a manner that P .O . Box 502565 Flood Hazard Design Requirements they are readily accessible to and usable Capitol Hill, Saipan, MP 96950 As the administering agency of the by persons with disabilities . Title III defines Tel . (670) 664-7000 CNMI Flood Damage Prevention Program, a public accommodation as a private entity Fax: (670) 664-7030 the Building Safety Office’s Flood Plain that owns, leases, leases to, or operates a E-mail: gddc@cnmiddcouncil .org Administrator will review building permit place of public accommodation . Website: cnmiddcouncil .org applications to determine if proposed Title III identifies twelve (12) categories Zoning Requirements projects are located within special flood of public accommodation . zones . Projects located in flood-prone areas The Commonwealth Zoning Board are required to submit program documents 1 . Places of lodging (e .g ,. hotels, motels); works to improve Saipan’s economy and and will be advised of: 1) the availability quality of life, and to conserve natural of federally subsidized flood insurance; 2) 2 . Places serving food and drink (e .g ., restaurants, bars); and historic resources . They do this by eligibility for federal disaster assistance; administering the Saipan Zoning Law and 3) flood hazard design requirements . 3 . Places of public entertainment (e .g ., movies, theaters, stadiums, concert in a way that is transparent and user- For more information on building permit friendly, and is integrated with other application requirements, the developer halls); 4 . Places of public gathering (e .g .,CNMI regulatory, land management, and infrastructure tax, flood hazard design development agencies . requirements, or other building safety auditoriums, convention centers); concerns, contact: 5 . Sales or rental establishments (e .g . stores); For more information on building Persons applying for new or renewal 6 . Service establishments (e .g ., gasof business licenses, constructing a new safety codes, permits, fees and other stations, dry cleaners, banks, requirements, please visit or contact building, renovating existing buildings doctors, and lawyers’ offices); or making ground improvements shall Building Safety Division: 7 Transportation. stations (e .g ., 40 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Physically setting up an office or facility submit an application for approval with the Renting or Leasing an Office CNMI Zoning Board before submitting any or Facility business license application to the CNMI Business Office . Businesses not interested in building a structure or facility may rent or lease space . Rent or lease options provide more choice For more information on the CNMI in location, are more affordable, help free Zoning Law, please contact them at: up money allowing for better response to changing markets, and afford the time for Caller Box 10007 business owners to concentrate solely on Saipan, MP 96950 running the business . Local real estate 2nd Floor . Joeten Building, DanDan, companies rent, lease, or sell commercial Saipan space and/or assist in identifying the right Tel: 234-9661/66 business location . Look in the Yellow Pages www .zoning .gov .mp of local telephone and business directories for a list of private real estate firms .

Located at Joeten Center in Susupe, P.O. Box 500168, Saipan, MP 96950 Tel: 234-6267 | Fax: 234-5880 www.pacificains.com General Agent For:

Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. CNMI Business Resource Guide 41 Hooking up to the local utility

CNMI (electrical power) or ten percent (10%) of the average billing 8. HOOKING UP for the two (2) highest billings during the Additional for water service previous twelve-month (12-month) period . TO THE LOCAL 1 Hydraulic. Analysis (Water Consumption Table) (for water For more information on utility services, service) contact: UTILITY 2 . Construction Plans - Profile and Commonwealth Utilities Corporation Details, if applicable (for water P .O . Box 501220 service) Commonwealth Utilities Corporation Joeten Commercial Building (CUC) is the local provider of power, water Dandan, Saipan, MP 96950 Additional for Wastewater Treatment: and wastewater treatment services . Tel .: (670) 235-7025-Saipan; 532-4010- 3 . Coastal Resources Management Commercial service applications are Rota; 433-9264-Tinian (CRM) Permit, if applicable available at the Power Division Office on Fax: (670) 235-6145-Saipan; 532-9415- 4 . Flow Calculation the 3rd floor of the Joeten Commercial Rota; 433-9262-Tinian 5 . Payment of $50 Inspection Fee Center in Dandan, Saipan, and the ground NOTE: The CUC Dedication of Easement gives floor of the Wind Song Enterprises Building CUC permission to enter the customer’s property OBTAINING TELEPHONE SERVICE for inspections, connections, installations, meter in Songsong, Rota, and the CUC Tinian readings, meter readings, and service terminations . Telephone service in the CNMI is Office in San Jose, Tinian . provided by Pacific Telecom, Inc . (PTI) . A refundable security deposit for To order telephone service, call or visit a Application Requirements power service is required and is based on customer service representative at PTI . The Customer Service Center is open on The following outlines the necessary estimated two-month average usage . weekdays from 8:00 a .m . to 5:00 p .m . documents and materials for each type of Some necessary information for service commercial service application . PAYMENTS applications include: Monthly payments may be made in 1 . map of business location; For all utility services: cash, cashier’s check, or business check . 2 . how your business name will appear 1 . Completed Application for Utility Third-party checks are not accepted . in the local telephone directory; Service Payments may be mailed to CUC or paid 3 . locations of telephones; 2 .Notarized CUC Dedication of in person . In addition, payments can be 4 . place of employment, if applicable, Easement from Original Property made on their website at www .iwebms . and telephone number; Owner, not 55-Year Lessee, if net/cucgov . 5 .CNMI driver’s license, Social applicable A billing period will normally contain Security card or passport; 3 . Land Title and Legal Property from twenty-seven (27) to thirty-four (34) 6 information. about previous Description, if applicable days . All bills are due and payable upon telephone service; and 4 . Site Location Sketch- Property presentation . A bill unpaid fifteen (15) days 7 . name of preferred primary long Map may be required for Survey/ after presentation is past due and will distance service carrier . Inspection receive a delinquency notice and incur a 5 . Lease and Sublease Agreement, if one percent (1%) late charge . Any account NEW TELEPHONE INSTALLATION any, from Original Property Owner that is not paid within fourteen (14) days REQUIREMENTS after the delinquency notice will be subject Additional for electrical power: Below are new telephone installation to disconnection for non-payment . If 1 . Load Calculation to be included requirements for new commercial disconnected, a commercial customer will with One-Line Diagram - 200 amps buildings: be assessed a re-connection fee that is the and above must be certified by a greater of one hundred fifty dollars ($150) 1 A. Dedication of Easement licensed electrical engineer in the 42 CNMI Business Resource Guide Note: Content in this page is an update of the Commonwealth Development Authority’s 2006 brochure on Setting Up a Business in the CNMI: A Guide for Investors. Hooking up to the local utility

Agreement, signed and witnessed to multilevel structure fires, rescue TRANSFER by a recognized CNMI Notary operations, and advanced EMS • Fill out Vehicle Registration 2 . Design/placement of underground situations . EMS programs in the Application facilities Northern Marianas have adopted • Fill out Certification Application 3 . Conduit connected to the housing at the National Registry Exam as the • Copy of Driver’s License or any I.D. building location system standard bearing their signature 4 . Conduit free of foreign materials • Motor Vehicle Liability Insurance with all PVC joints glued DEPARTMENT OF PUBLIC SAFETY • Bill of Sale must be notarized, 5 . Conduits set at walls flushed Police Division otherwise, acknowledge presence against them and screwed with “U” Saipan 664-9000 of both seller & buyer at BMV . clamps . Height of conduit at least Tinian 433-9222 • Certificate of Ownership must sixty inches (60”) or five feet (5’) Rota 532-9435 be signed off on lines 1 & 2, from final grade relinquishing rights to the car . If 6 . No common splice locations with Fire Division the registration read “and” as power or cable TV two registered owners, then both Saipan 664-9033 7 . Entrance cable provided and owned owners must sign, if it reads “or” Tinian 433-0476 by IT&E only one of the owners is required Rota 532-3736 to sign . To apply for a new service, discuss • Motor Vehicle Safety Inspection additional benefits, or change an existing • Receipt of registration fee payment service, contact: Bureau of Motor Vehicles from Superior Court . IT&E Saipan 664-9066 P . O . Box 500306 Tinian 433-0969 New Driver’s License Saipan, MP 96950 Fill out the Driver’s License and Sales & Marketing… (670)682-2877 Motor Vehicle Registration Operator’s Permit Application Form Sales Fax……………… . (670)235-2877 Registration of new vehicles Payment of fees must be made at the Marketing Fax …… . . (670)682-6170 purchased at any of the auto dealers will Superior Court; $40 for the Driver’s License Website: www .ite .net be processed by the auto dealer company . fee and $1 .00 for the Traffic Clearance . Otherwise the following are the procedures Submit all receipt and application to the Public Safety for registering vehicles purchased from CNMI Bureau of Motor Vehicle . other individuals or for renewing vehicle • The police division is comprised of registration: four sections: Traffic, Patrol, Boating RENEWAL (forms available at BMV) Safety and Criminal Investigation . Cooperative training and • Motor Vehicle Registration Card technological development with the • Motor Vehicle Safety Inspection U .S ., such as the implementation of • Motor Vehicle Liability Insurance the computerized Criminal Justice • Payment of registration fee shall be Information System keep the police made at the Superior Court (located division up-to-date . next to BMV) • The fire division is responsible for • Fill out Vehicle Registration fire prevention and suppression, Application to be accompanied with public fire education and Emergency I .D . Medical Services (EMS) . Personnel of the division are trained to respond

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44 CNMI Business Resource Guide agencies and Organizations

Fax: (670) 664-4871-Saipan; 532-0955- P .O . Box 5153 CHRB AGENCIES AND Rota; 433-9247-Tinian 2nd Floor, J .M . Building Garapan, Saipan, MP 96950 Division of Enforcement and Tel .: (670) 234-6925/6958/8036-Saipan; ORGANIZATIONS Compliance 532-9480-Rota; 433-0032-Tinian CNMI Department of Commerce Fax: (670) 234-1013-Saipan; 532-9482- Alcoholic Beverage and Tobacco Caller Box 10007 C .K . Rota; 433-0031-Tinian Control Division Capitol Hill, Saipan, MP 96950 CNMI Department of Commerce Tel . (670) 664-3014-Saipan; 532-9478- CNMI Law Revision Commission Caller Box 10007 Rota; 433-0853-Tinian P .O . Box 502179 Capitol Hill, Saipan, MP 96950 Fax (670) 664-3093-Saipan; 532-9510- Saipan, MP 96950 Tel .: (670) 664-3026/3065-Saipan; 532- Rota; 433-2589-Tinian Tel .: (670) 236-9820 9478-Rota; 433-0853-Tinian Fax: (670) 236-9897 Fax: (670) 664-3061-Saipan; 532-9510- Business Licensing Office E-mail: cnmilaw@itecnmi .com Rota; 433-0678-Tinian Division of Revenue and Taxation Website: www .cnmilaw .org Website: www .commerce .gov .mp CNMI Department of Finance P .O . Box 5234 CHRB Central Statistics Division Banking and Insurance Division 2nd Floor, Joeten Commercial Building CNMI Department of Commerce CNMI Department of Commerce Dandan, Saipan, MP 96950 Caller Box 10007 Caller Box 10007 Tel :. (670) 664-1000-Saipan; 532- Capitol Hill, Saipan, MP 96950 Capitol Hill, Saipan, MP 96950 1040/1065-Rota; 433-1600-Tinian Tel .: (670) 664-3033-Saipan; 532-9478- Tel .: (670) 664-3008-Saipan; 532-9478- Fax: (670) 664-1015-Saipan; 532-0473- Rota; 433-0853-Tinian Rota; 433-0853-Tinian Rota; 433-1615-Tinian Fax: (670) 664-3066-Saipan; 532-9510- Fax: (670) 664-3067-Saipan; 532-9510- Rota; 433-1054-Tinian Rota; 433-0678-Tinian CNMI Bar Association Website: www .commerce .gov .mp Website: www .commerce .gov .mp P .O . Box 504539 Saipan, MP 96950 Coastal Resources Management Board of Professional Licensing Tel :. (670) 235-4529 Office P .O . Box 2078 Fax: (670) 235-4528 Office of the Governor House #1336 Ascencion Dr . Website: www .cnmibar .net Caller Box 10007 Capitol Hill, Saipan, MP 96950 Susupe, Saipan, MP 96950 Tel .: (670) 234-4811/4809 CNMI Council on Developmental Tel .: (670) 664-8300-Saipan; 532-0464- Fax: (670) 234-4813 Disabilities Rota; 433-0494-Tinian P .O . Box 502565 Fax: (670) 664-8315-Saipan; 532-1000- Building Safety Division Capitol Hill, Saipan, MP 96950 Rota; 433-0638-Tinian CNMI Department of Public Works Tel . (670) 664-7000 Website: www .crm .gov .mp Caller Box 10007 Fax: (670) 664-7030 2nd Floor, Joeten Commercial Building E-mail: gddc@cnmiddcouncil .org Commonwealth Board of Nurse Gualo Rai, Saipan, MP 96950 Website: cnmiddcouncil .org Examiners Tel .: (670) 235-5827/5828-Saipan; 532- P .O . Box 501458 3870-Rota; 433-9255-Tinian CNMI Department of Finance Capitol Hill, Saipan, MP 96950 Fax: (670) 235-6346-Saipan; 532-3099- P .O . Box 5234 CHRB Tel .: (670) 664-4810/4812 Rota; 433-9242-Tinian Capitol Hill, Saipan, MP 96950 Fax: 664-4813 E-mail: bscadm@netscape .com Tel :. (670) 664-1100/01-Saipan; 532-1040- Rota; 433-1600-Tinian Commonwealth Development Bureau of Environmental Health Fax: (670) 664-1115-Saipan; 532-0473- Authority Division of Public Health Rota; 433-1615-Tinian P .O . Box 502149 Department of Public Health Saipan, MP 96950 P .O . Box 500409 C .K . CNMI Equal Employment Opportunity Tel .: (670) 234-6245/6293/7145-Saipan; Navy Hill, Saipan, MP 96950 Program 532-9408-Rota; 433-9203-Tinian Tel .: (670) 664-4870/4848/4849-Saipan; Office of Personnel Management Fax: (670) 234-7144 or 235-7147-Saipan; 532-9461-Rota; 433-0395-Tinian CNMI Business Resource Guide 45 agencies and Organizations

532-9407-Rota; 433-3690-Tinian Tel :. (670) 664-8500-Saipan; 532-3102- Internal Revenue Service E-mail: administration@cda gov. .mp Rota; 433-3169-Tinian Philadelphia, PA 19255-0215 Website: www .cda .gov .mp Fax: (670) 664-8540-Saipan; 532-3103- Tel .: (800) 829-1040 - Toll free Rota; 433-3169-Tinian (216) 516-2000 - (Hours: Mon-Fri; 6:00 a .m . Commonwealth Utilities Corporation E-mail: deq@saipan .com - 2:00 a .m . EST) P .O . Box 501220 Fax: (215) 516-2555 Joeten Commercial Building Division of Fish and Wildlife Dandan, Saipan, MP 96950 Department of Lands and Natural Marianas Visitors Authority Tel .: (670) 235-7025-Saipan; 532-4010- Resources P . O . BOX 500861 Rota; 433-9264-Tinian P .O . Box 10007 Saipan, MP 96950 Fax: (670) 235-6145-Saipan; 532-9415- Lower Base, Saipan, MP 96950 Telephone Number: 670-664-3200/3201 Rota; 433-9262-Tinian Tel :. (670) 664-6000-Saipan; 532-6000- Fax Number: 670-664-3237 Rota; 433-9298-Tinian Department of the Army Fax: (670) 664-6060-Saipan; 532-0520- MVA Japan Pacific Ocean Division Rota; 433-3152-Tinian AVIAREPS Marketing Garden, LTD Corps of Engineers International Place, Sanei-cho 26-3, Guam Operations Office Division of Historic Preservation Shinjuku-ku, Room 302 San Ramon Building Department of Community and Cultural Tokyo 160-0008, Japan 115 San Ramon Street, Agana, Guam 96910 Affairs Telephone Number: 813-3225-0263 Tel .: (671) 472-8091 Saipan, MP 96950 Fax Number: 813-5363-1118 Tel :. (670) 664-2120-Saipan; 532-0818- http://japan .mymarianas .com/ Department of Public Lands Rota; 433-0220-Tinian P .O . Box 500380 Fax: (670) 664-2139-Saipan; 532-0818- MVA Korea 2nd Floor, Joeten Commercial Center Rota; 433-0220-Tinian AVIAREPS Marketing Garden, LTD Dandan, Saipan, MP 96950 14F Donghwa Bldg 58-7 Seosomun-dong Tel .: (670) 234-3751/3752/3757-Saipan; Division of Labor Joong-gu, Seoul, 100-736, Korea 532-9431-Rota; 433-9245-Tinian CNMI Department of Labor Telephone Number: 822-777-3252 Fax: (670) 234-3755-Saipan; 532-9430- Caller Box 10007 Fax Number: 822-777-8179 Rota; 433-0599-Tinian Capitol Hill, Saipan, MP 96950 www .mymarianas .co .kr Tel :. (670) 236-0900/0907-Saipan; 532- Division of Customs 9429-Rota; 433-3700-Tinian MVA China CNMI Department of Finance Fax: (670) 236-0991-Saipan; 532-9468- Beijing Office P .O . Box 5234 CHRB Rota; 433-3730-Tinian AVIAREPS Marketing Garden, LTD China Puerto Rico, Saipan, MP 96950 Suite 81, Building 3 Jianguomenwai Tel .: (670) 664-1601-Saipan; 532-9455- Division of Revenue and Taxation Diplomatic Compound, No . 1 Xiushuijie Rota; 433-1600-Tinian CNMI Department of Finance Chaoyang District Beijing, P .R . China Fax: (670) 664-1615-Saipan; 532-0473- P .O . Box 5234 CHRB Telephone Number: 86-10-8532-5343-197 Rota; 433-1615-Tinian 1st Floor, Joeten Commercial Building Fax Number: 86-10-8532-3845 Dandan, Saipan, MP 96950 www .mymarianas .cn Division of Employment Services Tel :. (670) 664-1000-Saipan; 532-1040- CNMI Department of Labor Rota; 433-1600-Tinian MVA Shanghai Office Caller Box 10007 Fax: (670) 664-1015-Saipan; 532-0473- AVIAREPS Marketing Garden, LTD China Capitol Hill, Saipan, MP 96950 Rota; 433-1615-Tinian Suite B, 18/F, JingAn New Century Plaza, Tel .: (670) 236-0926/0928-Saipan; 532- 188 Wujiang Road, Shanghai, P .R . China 9448-Rota; 433-3707-Tinian Hotel Association of the Northern Telephone Number: 86-21-6359-1535-121 Fax: (670) 236-0994-Saipan; 532-9468- Mariana Islands Fax Number: 86-21-6539-1571 Rota; 433-3730-Tinian P .O . Box 5075 CHRB www .mymarianas .cn Saipan, MP 96950 Division of Environmental Quality Tel: (670) 233-1420 P .O . Box 501304 Fax: (670) 233-1424 Gualo Rai Commercial Center Website: www .marianashotels .org Gualo Rai, Saipan, MP 96950 46 CNMI Business Resource Guide agencies and Organizations Medical Profession Licensing Board As Terlaje Campus, Building T Banks c/o Commonwealth Health Center As Terlaje, Saipan, MP 96950 P .O . Box 500409 C .K . Tel :. (670) 235-1551/1552 Bank of Guam Capitol Hill, Saipan, MP 96950 Fax: (670) 235-5383 P .O . Box 501217 Tel . (670) 664-4811 Saipan, MP 96950 Fax: (670) 664-4813 Social Security Administration Garapan Branch…… . . Tel: (670)236-2700 2nd Floor, Marina Heights II Building ………Fax: (670)233-5003 Occupational Safety and Health Puerto Rico, Saipan, MP 96950 Website: www .bankofguam .com Administration Tel :. (670) 234-6203-Saipan; 532-9421- Saipan Office Rota; 433-9421-Tinian Bank of Hawaii U .S . Department of Labor Website: www .ssa .gov/employer/ P .O . Box 500566 Tel .: (670) 323-1201/322-3758 Social Security Administration Saipan, MP 96950 Office of International Programs Garapan Branch……………322-4210 Occupational Safety and Health P .O . Box 17741 Fax: (670)322-4210 Administration Baltimore, MD 21235-7741 Website: www .boh .com San Francisco Office U .S . Department of Labor Tinian Casino Gaming Control Bridge Capital LLC 71 Stevenson Street Commission Garapan San Francisco, CA 94105 P .O . Box 143 Tel .: 323-7700/322-3508/9 Technical Assistance Line: 1-800-475-4019 Tinian, MP 96952 Complaint Line: 1-800-475-4020 Tel :. (670) 433-0063 Bank of Saipan Publications Line: 1-800-475-4022 Fax: (670) 433-9290 Garapan Saipan Branch E-mail: contact@tiniangamingcommission .com P . O . Box 500678 Quarantine Website: www .tiniangamingcommission .com Saipan, MP 96950 Depart of Land and Natural Resources Garapan Branch…… . Tel: (670)233- (DLNR) U.S. Equal Employment Opportunity 6260/61/62 Airport Commission Website: www .bankofsaipan .com Tel: (670)288-1045/6 San Francisco District Office 901 Market Street, Suite 500 Bankpacific Ltd. Registrar of Corporations San Francisco, CA 94103 P .O . Box 503201 CNMI Department of Commerce Tel :. (415) 356-5042 Saipan, MP 96950 Caller Box 10007 Fax: (415) 356-5126 Garapan Branch…… .Tel: (670)233-2265 2nd Floor, Joeten Commercial Building, Website: www .bankpacific .com Room 27 US Patent Office Dandan, Saipan, MP 96950 Commissioner for Patents City Trust Bank Tel .: (670) 664-3002 P .O . Box 1450 Gualo Rai Branch…… . .Tel: (670)235- Fax: (670) 664-1015 Alexandria, VA 22313-1450 7701/02/04/7828 Tel: 1-800-786-9199 Saipan Chamber of Commerce http://www .uspto .gov/patents/index jsp. Financial and Insurances Services P .O . Box 500806 Group, Inc 1st Floor, Family Building Workers’ Compensation Commission Beach Road, Garapan…… .Tel: (670)234- Garapan, Saipan, MP 96950 NMI Retirement Fund 0142/5706/8615…… . .Fax: (670)234-3517 Tel .: (670) 233-7150 P .O . Box 501247 Fax: (670) 233-7151 2nd Floor, NMI Retirement Fund Building Financial Express E-mail: saipanchamber@saipan .com Capitol Hill, Saipan, MP 96950 Tel: (670) 235-6032 Website: www .saipanchamber .com Tel :. (670) 664-8024-Saipan; 532-9516- Rota; 433-3733-Tinian First Hawaiian Bank Small Business Development Center P .O . Box 500625 Northern Marianas College Saipan, MP 96950 P .O . Box 501250 C .K .

CNMI Business Resource Guide 47 agencies and Organizations

Gualo Rai Branch………Tel: (670)235- Islander ...... 234-8233 3090…… .Fax: (670)235-3094 Airlines Services Website: www .fhb .com The CNMI airports comply with all local Travel Agencies Isla Financial Services and Federal Aviation Administration PO Box 503219 regulations . Saipan, MP 96950 Century Travel Agency JP Center Beach Road, Garapan Tel .: 235-5278/9 Asiana Airlines Tel: ...... 670- 235-3708/09/10 PMB 574 P . O . Box 10000 Fax: ...... 670 235-3711 Saipan, MP 96950 Bonding Tel: (670)288-2624/2625 Pacific Sky Travel Services Fax: (670)288-2627 Bonding must be US Treasury listed . MSV Building 3 Chalan Kanoa Website: http://flyasiana .com The D-U-N-S® Number is widely used P . O . Box 500774 by both commercial and federal entities Saipan, MP 96950 United Airlines and was adopted as the standard business Tel:670-235-0942/4 1-800-864-8331 • (671) 647-6453 identifier for federal electronic commerce Fax:670-235-0946 in October 1994 . Website: http://www .united .com MITA (Marianas International Travel The D-U-N-S Number® was also Delta Air Lines Agency) incorporated into the Federal Acquisition Reservations: 1-800-241-4141 P . O . Box 501217 Regulation (FAR) in April 1998 as the Federal Skymiles: 1-800-447-3757 Government’s contractor identification Saipan MP 96950 Tel: ...... 670-234-7888/6 code for all procurement-related activities . Freedom Air Fax: ...... 670-234-6939 Saipan Cnmi-guide .com/mitatravel DUNS # and SAMS application Airport: 670-234-8328/288-5005 • Federal Government website to Fax:670-288-5001 WINGS TRAVEL apply for DUNS, CCR and SAMS . Tinian: 670-433-3288 Next to Victoria Hotel Garapan http://fedgov .dnb .com/webform Rota: 670-532-5005 P .O . Box 501508, Saipan MP 96950 D-U-N-S Number assignment is FREE Star Marianas Tel: 670- 233-9462/63/64/65 for all businesses required to register with Tel: (670) 288-9988 Fax: 670- 233-9466 the US Federal government for contracts or grants . Arctic Circle Air World Tour & Travel Garapan, Saipan Tel: (670) 288-8876 PPP 305, P .O .BOX 10000 D&B SAIPAN, MP 96950 govt@dnb .com Buses Tel: . . . . . 670- 233-3600/3700/3800 CCRhelp@dnb .com (for customers located Fax: ...... 670-233-3900 outside the US, Puerto Rico and US Virgin PDI ...... 322-8770 Islands) STS Bus Company ...... 235-3760 Contact the GCRC Tasi Tours (Saipan Trolley) . . . . 235-7148 Newspapers/Radio/Television Grants Customer Support Center Stations/Internet Email:support@grants .gov Car Rental Telephone: 1-800-518-GRANTS (1-800- Television Stations 518-4726) . Avis (Tinian) ...... 433-2847 KSPN2 Hours of operation are Monday to Friday Dollar Tel: ...... (670)236-2222 from 7:00 a m. . Hertz ...... 234-8336 to 9:00 p .m . EDT (Eastern Standard Time) . Thrifty ...... 234-8356 MCV Broadband Tropical Rent-A-Car . . . . . 288-0373 Customer Sales & Service Toyota Rent-A-Car ...... 234-5911 Tel: ...... ( 670)234-4628 Coral (Rota) ...... 532-1996 Website: www .mcvcnmi .com Budget ...... 234-8232 48 CNMI Business Resource Guide agencies and Organizations

Beach Magazine ...... 323-2323 International Insurance & Beach Road Magazine . . . . 234-6440 Shipping/Freight forwarders Tour Agency ...... 235-8888 The Rock Studio ...... 233-9898 JB Professional Insurance Co .233-3024 TAGA ...... 235-2440 Ambyth Shipping Micronesia . . 322-0910 MGA Business/ TOPS+More ...... 989-6505 Cargo Express Forwarders . . . 234-6617 Midland National . . . . 234-6278/9 989-6550 Consolidated Life Insurance KSA Transportation Services . . .322-1690 Marianas Insurance Co ,. Ltd . . . 234-5091 KZMI/KCNM ...... 234-7239 Emery Worldwide Midland Insurance KACV (Korean language TV) . . 235-9667 Saipan Shipping Company, Inc . 322-9706 Underwriter Inc ...... 235-3598 Marianas Variety ...... 234-6341 Saipan Stevedore Co ., Inc . . . . 322-9540 Moylan’s insurance Marianas CableVision . . . . 235-4628 Seabridge, Inc . (Super Shuttle) 322-7348 Underwriters ...... 234-2489/90 North Star Newspaper . . . . 234-3000 Triple B Forwarders . . . . . 234-5505 International, Inc . Pacific Daily News ...... 234-6423 FAS Moving & Storage Co . . . 322-6587 Nichio Fire and Insurance . . . 234-5690 Power 99 FM ...... 235-7996 TGFC Shipping PSG Insurance ...... 235-5901/2 Saipan Tribune ...... 235-8747 Tinian Marine Stevedore . . . 433-0498 Pacific Basin Tinian Shipping and Insurance Company . . . . . 234-5680 Transportation ...... 433-0865 Pacifica Insurance Printers/Photocopiers Underwriters, Inc ...... 234-6267 Elite Printing Telecommunication Prudential The Fax ...... 234-3077 As Lito Road, Koblerville Royal Crown Saipan, MP 96950 IT&E Insurance Company . . . . 234-2256/7 Tel: ...... (670)288-2677/2680 P . O . Box 500306 Seven Twelve Insurance . . . 234-1231 ...... (670)288-2239/6465 Saipan, MP 96950 Tokagi And Fax: ...... (670)288-2676 Information ...... 411 Associates, Inc ...... 233-2554 elite@pticom .com Sales & Marketing . . . . (670)682-2877 Traders Insurance Website: www .ite net. Company ...... 234—7788/9/98/99 Pacific Quick Print & Post World Wide Insurance . . . . 233-3605 Middle Road Docomo Pacific Tel: . . . . . (670)233-7678 or 235-3402 219 South Marine Corps Drive, Suite 206 Fax: ...... (670)233-7679 Tamuning, GU 96913-3927 Saipan Tel: ...... (670)483-2273 Marianas Printing Services, Inc. Fax: ...... (670)235-7640 Tel: ...... (670)234-6259/6039 Website: www .docomopacific .com Fax: ...... (670)234-0746

R & M Enterprise, Inc. Gualo Rai INSURANCE Tel & Fax: ...... (670) 322-3043 AIUP Associated Insurance . . 234-7222 Postal Companies Allied Insurance Associates . . 256-1200 AON Insurance Micronesia Inc .234-2811 DHL Worldwide Express . . . 234-7938 Calvo’s Insurance Federal Express ...... 322-8901 Underwriters, Inc . . . 234-5690/9/5922 Pacific Island Couriers Inc Century Insurance Co ., Ltd . 234-0609/10 TNT Express Worldwide . . . 235-6181 Equitable United Parcel Service . . . . . 234-5825 Insurance Co ., Inc . . . 235-5452/0488 United States First Stop Insurance Agency . .235-2838 Postal Office . . . . . (670)234-6270 Guam Insurance Adjusters . 234-3641/55 Individual Assurance Company 234-0960 International Insurance . . . . 234-1942

CNMI Business Resource Guide 49 Map of the CNMI and three main islands between spaces

50 CNMI Business Resource Guide

Commonwealth Healthcare Corporation Public Health and Hospital Emergency Preparedness Program

WASH YOUR HANDS WITH SOAP AND WATER FOR 20 SECONDS

AVOID SICK PEOPLE & AVOID TOUCHING YOUR EYES, NOSE AND MOUTH

TEACH OTHERS HOW TO PREVENT THE FLU

COVER YOUR COUGH OR SNEEZE

HAVE AN EMERGENCY PLAN PLAN, PREPARE, PREVENT

Medical Reserve Corps teams exist in each health district across the United States and consist of “Medical, Public Health Professionals and Community Members who volunteer to contribute their skills, expertise and time to support public health initiatives during natural and man made disasters.”

Get Ready Marianas Be a CNMI Medical Reserve Corp Member & Volunteer For Information please call (670) 236-8760