This is a country situated on the northern coast of the Horn of Africa. Lying on the Bab el Mandeb Strait which separated the Gulf of Aden and the Red Sea, its strategic position makes it important. This is a great benefit for investors looking to do business within the country. A major path to the Swizz Canal having some of the busiest shipping routes in the world, its port acts as the bedrock of the country’s economy and the largest source of employment in the country. Despite its size, the hub is a center for foreign powers all thanks to its strategic location. Establishing a company here is simple and takes no time. Aside from the cheap cost of registration, different forms of entities are allowed to operate without restrictions. Rather than go through the process of setting up a new company, legal persons interested in starting a company can buy any business on sale in the country.
For a business owner thinking of selling off the company or a person interested in learning more about selling companies within the country, this article provides information on selling a company in this African nation.
Doing business in Djibouti
The country attracts investors interested in the export, transport, and logistics industries. Since it is the only route to the sea from Ethiopia, there are numerous opportunities in the sectors for traders aiming to use the port to access Ethiopia and other parts of Africa. Being a peaceful nation, there has always been cordial relationships between it and other African countries. Relatively, doing business within the territory is cheap, economical, and lucrative despite its size.
Types of business forms
To run a company, one has to incorporate a company first. Registering a company in Africa is relatively cheap and stressful. Different forms of companies are set up by legal persons and corporate bodies in the territory. The types of entities allowed include but are not limited to:
Sole Proprietorship
Also known as a sole trader, this business is set up by a legal person within or outside the shores of the country. Easy to set up and managed by one person, there is no tax requirement, and all liability is incurred by the owner.
General Partnership
Can be established by two or more persons called partners. There are two types of partners: silent and general. They are all liable for the debts and losses the establishment incurs.
Limited Liability Company
This type of company pays a certain percentage as corporate tax to the government. When registering the company, it requires at least two directors who may be residents or natural persons. An LLC cannot sell its shares if it is a private company.
Selling a company
If you are looking to sell off your company in the country, you can easily do this online. You can create ads to promote the company for sale to reach potential buyers who might contact you directly. The best way to sell off your company is to hire an agent or contact an online vendor. They will either look for a suitable business on sale for you or post the ideal business you are looking to take over and reach out to sellers who want to sell off their businesses. Online vendors such as Easy Buy Sell Business to Buy & Sell let you create a business profile for your business to help you attract more buyers who might want to buy your business. It is advisable to keep calm while trying to sell a business online as there are numerous scammers on the internet now.
