Due to its geographic location at the Gulf of Aden, the barren country is of considerable geopolitical interest, Djibouti controls access and egress to a major waterway, the Red Sea and the Suez Canal, one of the world’s busiest shipping routes. The Djiboutian lawful environment is favourable to the businesses. You can create your company in Djibouti whatever your nationality or your place of residence is. The registration of your company in Djibouti can be done within three days. Foreign investor does not need a Djiboutian partner to start a business in Djibouti.

Company formation in Djibouti

Setting up a Djibouti company isn’t always simple. Before you begin the process, you’ll need to look at certain factors that will impact the incorporation process, such as your location, entity, and more. Just like different states in the U.S. have their own laws, regions or cities in Djibouti may have their own Djibouti subsidiary laws. Choosing the right location can make the incorporation process either easier or more difficult.

Once you find the right place for your physical office, you need to choose a type of subsidiary that fits your business goals. The three most common types of subsidiaries in Djibouti include a limited liability company (LLC), a limited company (S.A.), and a limited liability single-member company (EURL). Most companies use the limited liability structure because it protects both the subsidiary and the parent company.

The steps to set up a Djibouti subsidiary as an LLC include:
– Creating an in-country bank account and depositing initial capital
– Submitting a document saying that you want to start a new business
– Drafting the company’s statutes (either by yourself or with a lawyer)
– Registering the statutes with the Direction des Impôts
– Reserving a unique company name
– Registering with the Chamber of Commerce
– Publishing a notice that you’re starting activity
– Obtaining all required documents for registration
– And more

Djibouti Subsidiary Laws

Since Djibouti’s subsidiary laws vary by entity, you have to follow the regulations that specifically apply to LLCs. For example, you’ll face several different requirements before you obtain your articles of association. You’ll need the identity cards of all your associates, repartition of associates’ shares, and your company’s name, purpose, and address. Failing to comply with any of Djibouti’s subsidiary laws could mean you end up dealing with fines and delays that impact the process.

Benefits of Establishing a Subsidiary

Once you finally go through the Djibouti subsidiary setup process, you’re ready to benefit from working in the country. Using an LLC will also help you keep all your businesses protected. Your parent company will not be liable for any of the subsidiary’s actions, and your subsidiary can choose its own company culture and similar factors.

How we can help you

If you are considering forming a business or you need expert help with company registration in Djibouti, 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 Djibouti 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 legal@7geniusgroup.com