A number of cases have been brought against foreigners who have allegedly  received business permits via Trade Invest, but have not set-up proposed businesses.

Trade Invest operates under the State Secretary of Private Sector and has the authority to facilitate foreign investment.

"I have instructed the director of Trade Invest to immediately inform how many companies have already invested in Timor-Leste and how many companies have received business certificates,” said Coordinating Minister for the Economy, Fidelis Magalhaes.  “The business permits of those that have not made investment activities must be cancelled,” he said.

Magalhaes said the government wanted to support business investment, but admitted that the business environment was challenging, pointing to challenges with land ownership and basic resources. 

A 2019 World Bank Ease of Doing Business Report ranked Timor-Leste 178th out of 190 countries, putting it behind Indonesia (ranked 73) and Portugal (ranked 34).

Out of a score of 100 the report gave Timor-Leste zero for ease in registering properties, 6.1 for enforcement of contracts and 20 for the ability to obtain credit.