Biz license renewals record significant drop in 2nd- quarter of FY2022

Pago Pago, AMERICAN SAMOA — The Department of Commerce (DOC) recorded a significant drop in the registration of business licenses for the second quarter of this fiscal year, however their one-day business licensing process online saw an increase in numbers of visitors

The DOC reports more than 40 percent of business licenses were not renewed from last year.

Outlined in the second quarter performance report for the current financial year 2022, that as of March 2022 a total of 2,762 business licenses were registered.

“A total of 4,616 business licenses were recorded in the previous calendar year. “Compared to Calendar Year (CY) 2021, there is still a 40.16 percent decrease in returning business owners within these past six months of fiscal year 2022 since the business renewal period started in October 2021.

“However, current projections reveal that CY2022 will yield more registered business licenses across American Samoa over the last decade.”

The report says some “key factors” to this significant increase include federal financial assistance under the American Samoa Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund programs to assist businesses impacted by Covid-19.

The ten-year overview of the registered businesses in American Samoa outlined below:

2013 — 3,416;

2014— 4,678;

2015— 3,813;

2016— 3,037;

2017— 2,911;

2018— 2,858;

2019— 2,985;

2020—3,239;

2021—2,616;

2022—2,762

In CY 2021 total revenue collected was $479,856.50 and this consisted of new business licenses, and also additional business activity and license renewal.

For the period from October-December 2021, the first quarter for the current fiscal year, revenue collected amounted to $264,312.50 whereas for new businesses the DOC collected $37.50; additional business activity amounted to $200 and the renewed business licenses was $264,312.50.

Between January and March, 2022 a total of $157,290 was collected. This included $18,350 from new businesses; $3,500 from additional business activity and $135,440 for business renewals.

The report says total revenue collected from between October 2021 to March 2022 amounted to $421,602.50.

Regarding the one-day business licensing process online, it saw an increase in numbers of visitors on the DOC’s website with 688 visits online, which resulted in 47 new business submissions and 49 business renewals.

“This process has proven to be a streamlined and business friendly method. An increasing number of American Samoa entrepreneurs are visiting the Department of Commerce to obtain business licenses for a variety of business activity such as child daycare services; e-commerce; food catering delivery services; consulting services, fast food; freelance photography; power wash services, business consulting, farming, barber shops, etc.

“Throughout this quarter our one day business license process was delayed due to the extra clearances and processes that were newly required by the Workman Compensation Commission and the Treasury Department for tax clearance for CY2022 business license renewals.”

All business owners are referred to the Department of Treasury Tax Office to retrieve a tax clearance in order to complete the FY 2022 license renewal process.

“This process allows the Tax office to advise applicants of any outstanding debts that they may need to resolve before continuing to conduct business legally in American Samoa.”

The DOC waived the Tax clearance due to COVID-19 restrictions. 

Also the report says that all business owners are referred to the Office of the Workmen’s Compensation Commission to retrieve clearance, this is ensure businesses are insured for their employees and are registered with their office.

However in March, clearances were waived when the island went into lockdown.

Furthermore businesses in finance activities must get a clearance from the office of the Financial Institutions, and this includes insurance companies.