Business Formation

Deposit initial capital in bank account

Agency: Commercial Bank

The minimum capital requirement is ERN 15,000 for a private limited liability company and ERN 50,000 for a share company.

Time and cost: 1 day, no charge

Search for a company name

Agency: Business License Office

The search is conducted at the Business License Office.

Time and cost: 2 days, no charge

Notarize company statutes

Agency: Notary

The memorandum and articles of association is signed by the shareholders before a notary, and a stamp duty is paid.

Time and cost: 3 days, ERN 715.2

Register with the Commercial Registry

Agency: Business License Office

To register with the Commercial Registry, five or six copies of the memorandum and articles of association must be submitted at the License Department of the Ministry of Trade and Industry.

Time and cost: 7 days, no charge

Publish the incorporation notice in the official journal

Agency: Ministry of Information

An incorporation notice is published (in both Arabic and English) in the official journal, Hadas Eritrea, announcing the company incorporation. Protestors have 30 days to contest the company’s incorporation and name.

Time and cost: 33 days, ERN 600 –1000

Apply for a tax identification number (TIN)

Agency: Inland Revenue Department

Once the company registers at the Inland Revenue Department for the taxpayer identification number, it is recognized as a VAT taxpayer.

Time and cost: 7 days, no charge

Obtain tax clearance from the Inland Revenue Department

Agency: Inland Revenue Department

All new businesses must obtain tax clearance from the Inland Revenue Department.

Time and cost: 1 day, no charge

Apply for a business license

Agency: Ministry of Trade and Industry

A business license application requires tax clearance and property title documents. The cost of the business license ranges from ERN 500 to ERN 1,000.

Time and cost: 14 days, ERN 500

Receive inspection from the Ministry of Trade and Industry

Agency: Ministry of Trade and Industry

The business license inspection, required for zoning purposes, may take only a day, but it also will take several days to set up an appointment.

Time and cost: 7 days (simultaneous with previous procedure), ERN 500

Obtain approval from the local municipality

Agency: Local municipality

All new businesses must obtain approval from the local municipality.

Time and cost: 2 days, ERN 100-500

Notify the Ministry of Labor and Human Welfare

Agency: Ministry of Labor and Human Welfare

All companies must notify the Ministry of Labor and Human Welfare by completing the registration form and submitting it to the Ministry for approval.

Time and cost: 1 day, no charge

Make a company seal

Agency: Seal maker

The practice is not regulated, but the seal typically includes the tax code for the company.

Time and cost: 3 days, ERN 400

Apply for tax receipts from the Inland Revenue Department

Agency: Inland Revenue Department

The company may either print the receipts directly at the Inland Revenue Department or obtain permission to print them itself.

Time and cost: 10 days, ERN 200 for 10 packs of receipts