Company registration in Eritrea

Company registration in Eritrea
Eritrea

Eritrea is an independent state located on the Red Sea coast in the Horn of Africa.

Those, who want to register a company in Eritrea and open the account with an African bank, must pay attention to the following:

  • Eritrea is a member of the IBRD, Group of 77, COMESA, AU, IAEA and others;
  • A capital is Asmara;
  • 11 state languages, with 3 working: English, Tigrinya and Arabic;
  • It borders with 3 countries: Djibouti, Sudan and Ethiopia;
  • An official currency is nakfa (ERN);
  • 100% foreign ownership is allowed.

If you are interested in this jurisdiction, you can receive individual advice on business organization process in Eritrea from YB Case specialists.

Read also:

BEST BUSINESS AREAS FOR AN ERITREAN COMPANY

In order to open a business in Eritrea remotely, you can choose one of the following promising options:

  • Setting up a tourism company in Eritrea;
  • Registering an Eritrean agricultural company (corn, maize, cotton, vegetables and fruits);
  • Opening a saltwork in Eritrea;
  • Setting up a mining company in Eritrea (gold, silver, copper, sulfur, nickel, potassium, marble, zinc and iron);
  • Registering an Eritrean textile company;
  • Opening an Eritrean transport company (buses, garbage trucks, cleaning machines).

Also, it can be profitable to establish a food production business, especially brewery or winery.

Business entity types and taxes

Entrepreneurs, who seek to set up a company in Eritrea and open a corporate account with an Eritrean bank, must take a closer look at the following legal forms:

  • LLC (SARL)
  • PLC
  • Manufacturing company
  • FZC
  • Mining company
  • Branch.

Legal form

Corporate tax

Sales tax

Share capital

LLC

30%

3%-12%

1 500 USD

PLC

30%

3%-12%

5 000 USD

Manufacturing company

30%

3%-12%

1 500 USD

FZC

-

-

1 500 USD

Mining company

38%

5%-10%

1 500 USD

Branch

34%

3%-12%

1 USD

YB Case experts recommend you registering a SARL in Eritrea as it is the most common legal form.

Registration requirements

If you are intended to open a company in Eritrea without a personal visit, you will need to fulfill these conditions:

  • Two directors and shareholders of any nationality;
  • A registered office;
  • Mandatory annual financial statements and the audit.

How to start a business in Eritrea

Those, who are planning to set up an Eritrean company and open an account for a company in Eritrea, can consider the following banks:

  1. Commercial Bank of Eritrea;
  2. EID Bank;
  3. Housing and Commerce Bank of Eritrea;
  4. Bank of Eritrea;
  5. Banca per l`Africa Orientale.

In order to learn more about this country, you can ask for qualified advice on a company registration procedure in Eritrea from YB Case experts.

Also, we can provide you with qualified support services in opening a corporate account and registering a local office in Africa.

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