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.
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:
- Commercial Bank of Eritrea;
- EID Bank;
- Housing and Commerce Bank of Eritrea;
- Bank of Eritrea;
- 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.
