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Eritrea is a country in northeastern Africa with the capital Asmara, which is home to a quarter of more than 5 million inhabitants. The area of ​​Eritrea is 121,100 km². It shares borders with Djibouti, Sudan, and Ethiopia. Has access to the Red Sea.

Gross Domestic Product (GDP) for 2017 is estimated at $ 5.8 billion. At purchasing power parity, GDP is $ 9.4 billion or $ 1580 per inhabitant. The real growth of the economy is 5.0%. Eritrea is one of the poorest countries in the world, and the main reason for this is an authoritarian government.

The state currency is nakfa, $ 1 is approximately equal to 15 ERN.

In addition to English, the official languages ​​of the jurisdiction are also Tigrinya, Arabic, and several other rare languages. Tigran and Italian are most commonly used in business, trade, and commerce.

Eritreans are very hospitable and friendly, but economically the country is closed.

The average level of taxation in Eritrea is 84.5%. Corporate income tax – 34%, for a branch – 38%. For LLC – 30%. There is a tax-free zone for tourism companies.

Company registration in Eritrea: areas

Registering a company in Eritrea in the tourism industry is very promising since there is a resource for beach holidays, interesting archaeological excavations, unusual architecture, and peculiar cultural characteristics of the aborigines. Italian, Egyptian and Turkish architecture reflects the turbulent history of the port city of Massawa. An excursion train runs between Asmara and Nefasit, while tourism in the republic is still a free niche.

If you intend to register farming in Eritrea in the field of agriculture, please note that in the mountain ranges, 75% of the population cultivates corn, maize, cotton, vegetables, and fruits.

Industrial sector: Eritrea produces gold, silver, copper, sulfur, nickel, potassium, marble, zinc, and iron. The salt industry is important for world exports. There is a cement, textile, and food industry, including breweries, and alcoholic and wine products. Eritrea manufactures parts and furniture, buses, garbage trucks, and Tesinma cleaning machines.

If you want to open a trading company in Eritrea, then the state has large deep-water ports – Massawa and Assab.

Business options with joint exploitation of the waters around the islands can be considered for the registration of a company in Eritrea and Yemen.

Requirements for registration of a company in Eritrea

Any investment activity with foreign capital is coordinated with government agencies. The procedure is as follows:

  • Pay the minimum authorized capital: $ 1,500. Open an account for a company in Eritrea.
  • Suggest a name that does not appear in the Eritrean Commercial Register – this item is subject to verification.
  • Prepare a memorandum and charter of the company (in 6 copies), and collect signatures of all shareholders.
  • Statutory documents are submitted in English, notarization is required (its cost is 715.2 ERN).
  • Further, all copies of the memorandum and charter are sent to the Licensing Department of the Ministry of Trade and Industry: in 3 days a note about your company will be published in Hadas Eritrea in Arabic and English (you need to pay 1,000 ERN for publication).
  • According to the statement of the founder in the Tax Inspectorate, you need to obtain the IIN of the company.
  • Obtain permission from the tax office to conduct commercial activities.
  • Obtain a license from the Ministry of Trade and Industry, payment – 1 thousand ERN.
  • Checking the office by the civil service – 500 ERN. Only Eritrean citizens are eligible to buy property in Eritrea.
  • Registration of a company in Eritrea by foreign investors can only be carried out with the participation of residents. If you are planning to register a business in Eritrea with a personal visit, then all non-residents will need to obtain a visa at the Eritrean embassy/consulate. The director of the company does not have to be a resident.
  • A non-resident working in the republic must obtain a work permit from the Eritrean State Security Department. The registration form must also be submitted to the Ministry of Labor and Human Resources.
  • Order a print (up to 800 ERN).
  • Obtain receipts from the Tax Form for paying taxes.
  • Foreign investors have the opportunity to register a company in Eritrea remotely.

The tax regime in Eritrea

Those who are going to register a company in Eritrea remotely should familiarize themselves in detail with the country’s tax system. The following taxes are provided for legal entities:

  • The standard income tax rate is 30%. Oil companies pay tax at 35% and mining companies at 38%. 
  • Free Zone Travel Companies (FZ TC) are exempt from tax;
  • Sales tax – 5%;
  • Royalty tax – 10%

There is no tax on dividends and interest.