The economy of Eritrea has experienced considerable growth in recent years, indicated by an improvement in gross domestic product (GDP) in October 2012 of 7.5 percent over 2011. However, worker remittances from abroad are estimated to account for 32 percent of gross domestic product. Eritrea has an extensive amount of resources such as copper, gold, granite, marble, and potash. The Eritrean economy has undergone extreme changes due to the War of Independence. In 2011, Eritrea’s GDP grew by 8.7 percent making it one of the fastest growing economies in the world.
Eritrea Company Registration – LLC
For Eritrea company registration, the Limited Liability Company is the most popular type formed by foreigners in Eritrea. To obtain a certificate of Incorporation, a company must be registered and in order a company must be created.
– To create a company, an applicant should start by opening up a back account for the new company. If the company has no name, an account can be opened under the name company being created.
– Proceed with depositing the initial capital into the bank account. (if an account has not yet been created, the capital may be deposited in the office of a selected lawyer of the new company);
– The applicants must then find a new for the company to be incorporated. In this case a name is suggested, then applicants are required to go to the commercial registry to find if the name is available for use;
– Thereafter, applicants should proceed with drafting and signing the memorandum and articles of association. Usually these are drafted by a notary / lawyer and signed by the shareholder; and a stamp duty should be inserted;
– After the above, the applicants proceed with registration of company with the commercial registry. In this case, the applicant submit signed and stamped copies of memorandum and articles of association to the license department of the Ministry of Trade and Industry;
– Incorporation of the new company is then published in an official journal. The publication runs for a minimum of thirty (30) days to allow delivery of any objections from public;
– When no objections are received, the applicants proceed with obtaining a Tax Identification Number (TIN). This is done by registering at the Inland Revenue Department;
– After registration with the tax department, the applicants must obtain a tax clearance certificate from the Inland Revenue Department.
– Then obtain a business license (certificate of Incorporation) from the Ministry of Trade and Industry. This is done by submitting copies of property title documents and a copy of tax clearance certificate.
– When application for a business license is submitted, an inspector from the ministry will visit the applicants office and carry out an inspection.
– The applicants must also obtain an approval from the local municipality where company is situated;
– The applicants then proceed with notifying the Ministry of Labour and Human Welfare of the existence of company. This is done by obtaining, filling and submitting a registration form for approval;
– After approval by the ministry, the applicants are also advised to make a company seal which must include the tax code for the company;
– There after applicants may also decide to request for tax receipts from the Inland Revenue Department. The receipts can be printed at the revenue department or an authorization may be given to print them from somewhere else;
How we can help you
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Please use our Company Formation Wizard if you would like to set up your registered company in Eritrea 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