A limited liability company is the best for investors interested in starting new ventures in Afghanistan. With this entity, the shareholders are liable only to the extent of the amount of capital they invested in the company.
To incorporate an LLC in Afghanistan, there must be at least one director and two shareholders. Both the director and the shareholders may or may not be Afghan residents. However, the law requires that a resident company agent and a board of supervisors be appointed. Finally, setting up a limited liability company in Afghanistan doesn’t have any requirements for minimum capital share.
Incorporating a Corporation in Afghanistan
Other than setting up an LLC, investors interested in company registration in Afghanistan may also consider registering a corporation as an alternative. Well, this is if you are thinking about starting an investment that you may wish to issue shares to the public at some point during its operations. Just like a limited liability company, a corporation in Afghanistan must have at least one director and two shareholders. Adding on to that, it must also have a resident company agent as well as a board of supervisors.
A branch office is the other option available for investors looking forward to doing business in Afghanistan. However, a branch office is not a separate legal entity from its parent company. Thus, this implies that the parent company will be liable for all the losses made by the branch office. Though branch offices are not allowable by law to appoint directors or shareholders, they must have at least one legal agent who must be an Afghan resident.
Other than the above, investors interested in company registration in Afghanistan are also free to register sole proprietorship and partnerships in Afghanistan.
Business Registration Process in Afghanistan
Here is an overview of the company registration process in Afghanistan
Referral letter to the ACBR
The process of registering any business in Afghanistan begins by taking a referral letter to the Afghanistan Central Business Registry, ACBR, from the Trade License Office, ASIA or any other license department. While submitting the referral to ACBR, the following requirements should also be carried along-:
The business application form available at ACBR website
A copy of the passport or its equivalent of the president and the vice president of the company.
Two sets of coloured passport photos of the president and the vice president of the business.
Articles of incorporation
Issuance of Tax Identification Number
After the successful registration of a business profile, the next step in company registration in Afghanistan is the issuance of Tax Identification Number. It is a ten-digit permanent identification number that will never change. Anyway, you will need to renew it upon expiration.
Publication in the Official Gazette
After the issuance of the PIN certificate, the specifications of the new business will be collected by the ACBR office and submitted for publication in the Official Gazette. The publication on the Gazette will include among other things:
the name of the company
name of the president and the vice president
location of the business
the type of operation or activities that the company will be doing
Receipt of a Registration Certificate
The authorities will issue you a Certificate of Registration. This certificate has no expiration date, and the company must retain it for their records.
Get the Business License
Upon the completion of the registration process, you will receive a memo from the relevant licensing officer. This indicates that the business is duly registered and has been issued with a TIN as well as has been published in the Official Gazette.
How we can help you
If you are considering forming a business or you need expert help with company registration in Afghanistan, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.
Please use our Company Formation Wizard if you would like to set up your registered company in Afghanistan or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at email@example.com