Discover business topics

Doing business worldwide

Blog about doing business internationally.

Djibouti is an African republic whose economy is based on: agriculture, transport services, and banking services. Also, dynamic development is taking place in the fields of tourism and telecommunications. Entrepreneurs who are interested in registering a company in Djibouti can familiarize themselves with the features and advantages of this jurisdiction.

The territory is considered favorable for doing business because the authorities have a positive attitude towards foreign investors and provide various advantages and incentives.

If you decide to start a business, it is worth considering that the types of companies in the country are represented in several OPFs, but the most common is SARL (LLC) or LLC, as well as a branch. It is also possible to register a limited liability company of one owner (EURL).

If you have decided to open a company in Djibouti and open an account in Djibouti, you are offered a tax-free territory – the Djibouti Free Zone (DFZ), which has been in effect since October 2004. The local FEZ actively works with Eastern European countries and is a regional logistics, trade, and marketing center.

Simple procedures and formalities allow you to obtain (if necessary) a license within 1 day. An activity license is required for all non-residents unless their activity is on the list of exceptions in the local tax code. Please note that any individual or legal entity involved in import is required to obtain an appropriate license.

If you are going to start a business in the Djibouti Free Zone by creating a branch or incorporating a new company (FZE / FZC), you will need to fill out a license application form and approve the project, and after preliminary approval, you will need to submit the necessary legal documentation to register a company in Djibouti.

Advantages of opening a company in Djibouti

  • favorable tax climate;
  • no currency restrictions;
  • the ability to operate in the local market;
  • guaranteed foreign ownership.

If you want to register a company in Djibouti, you first need to familiarize yourself and choose the organizational and legal form for doing business.

The most common forms are LLC and branch.

Foreign entrepreneurs are encouraged to register a company in the Djibouti Free Zone (DFZ), which works closely with Eastern European jurisdictions.

Those wishing to register a business in Djibouti must fulfill this list of conditions of the Regulator:

  • The minimum share capital is about 62,000 €.
  • A minimum number of directors: two.
  • A minimum number of shareholders: two.
  • Obtain an import license.
  • The registration state fee is about 3,500 €.
  • Fill out an application and submit it.
  • Provide the required set of documents.
  • Register a legal address.
  • Register the original name of the institution.

The process of registering a business in Djibouti is 2 weeks.

Taxation in Djibouti

The corporate tax is 0%.

A company incorporated in a free zone with a turnover exceeding € 240,000 is subject to a value-added tax of 25%.


Maintenance and filing of financial statements are mandatory.

The audit is mandatory.

3 Types of companies in Djibouti

The most popular types of business in Djibouti are considered to be a limited liability company (LLC), a joint-stock company (SA), and a sole proprietorship limited liability company (EURL):

  1. LLC: 2 partners are required to create a company of this type, there is no minimum share capital.
  2. Joint Stock Company (SA): at least 1 shareholder is required, there is no minimum share capital.
  3. Sole proprietorship limited liability company (EURL): a minimum of 7 shareholders is required to create a company, and the minimum capital amount is 5 million DJF ($ 28,170). It is also necessary to create a board of directors consisting of 3-12 members, elected for 3 years.