The Solomon Islands National Parliament has passed the Companies Bill 2009 into an Act of Parliament.
The Bill aims to ease impediments facing both local and Foreign Investors wishing to start and register companies in Solomon Islands.
The new companies act caters for sole traders, share holding companies and even community businesses.
The Minister for Commerce, Industries and Employment, Francis Billy Hilly, said under the old act, there's no provision for community or tribal companies to be registered.
He said the old Companies Act is also so old that some provisions are no longer applicable to the present situation.
The new act will simplify the process in starting up businesses in Solomon Islands, cheap to implement and easy to administer.