Starting a Business in Djibouti

This table summarizes the procedures and costs associated with setting up a business in Djibouti.

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Legal Form: Limited Liability Company
City: Djibouti Ville

	Procedure	Time to complete:	Cost to complete:
1	Deposit the initial capital at the bank and obtain a receipt	2 days	no charge
2	Verify the uniqueness of the company name	5 days	no charge
3	Notarize company statutes	3 days	DJF 100000
4	Obtain criminal record of managers	2 days	DJF 500F stamp duties per page (depending on number of records)
5	Register statutes with the Service des Domaines	2-5 days	5% of capital + DJF 500 per page stamp duties (x16 or 17 pages).
6	Publish notice in La Nation	7 days	DJF 20,000 to 40,000 depending on the length
7	File documents with the Commercial Registry at the Greffe du Tribunal	8 days	DJF 32,800 registration fees (l’immatriculation)
8	Register for taxes and obtain professional license (patente)	2 days	DJF 100,000 to 300,000.
9	Create a company seal, letterhead and books	3 days	DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books)
10	Obtain signature of the President of the Court on the company books	2 days	no charge
*11	Register employees with Organisation de Protection Sociale (OPS)	1-2 days	no charge

* Takes place simultaneously with another procedure.

Procedure 1.: Deposit the initial capital at the bank and obtain a receipt
Time to complete:: 2 days
Cost to complete:: no charge
Name of Agency:
Comment:: The bank must check the origin of the funds and the purpose of the initial capital. The parties must submit a document stating their intent to start a new business. If during the company’s life the capital should change, the company’s registrar must be notified.

Procedure 2.: Verify the uniqueness of the company name
Time to complete:: 5 days
Cost to complete:: no charge
Name of Agency:
Comment:: The uniqueness of company name is searched manually. It takes about 5 days to search by number and longer to search by name.

The following documents are required to verify the uniqueness of company name: proposed company name; address of company headquarters; list of client(s); description of business activities; name of manager; duration (up to 99 years); capital (each share must represent a minimum of DJF 25,000; if capital is the minimum of DJF 1 million, it can be divided into 40 shares at most).

Procedure 3.: Notarize company statutes
Time to complete:: 3 days
Cost to complete:: DJF 100000
Name of Agency:
Comment:: Fees to notarize company statutes are negotiated between the notary public and the client.

Procedure 4.: Obtain criminal record of managers
Time to complete:: 2 days
Cost to complete:: DJF 500F stamp duties per page (depending on number of records)
Name of Agency:
Comment:: This procedure is obligatory.

Procedure 5.: Register statutes with the Service des Domaines
Time to complete:: 2-5 days
Cost to complete:: 5% of capital + DJF 500 per page stamp duties (x16 or 17 pages).
Name of Agency:
Comment:

Procedure 6.: Publish notice in La Nation
Time to complete:: 7 days
Cost to complete:: DJF 20,000 to 40,000 depending on the length
Name of Agency:
Comment:: A notice should be published twice, with a company description including its capital, the name of the manager, and the nature of its activities. La Nation is published twice a week.

Procedure 7.: File documents with the Commercial Registry at the Greffe du Tribunal
Time to complete:: 8 days
Cost to complete:: DJF 32,800 registration fees (l’immatriculation)
Name of Agency:
Comment:: The entrepreneur must bring a certificate of deposit and receipt from the Service des Domaines.
Time: 7 days (plus 1 day to go back to the Service des Domaines for confirmation of the registration).

Procedure 8.: Register for taxes and obtain professional license (patente)
Time to complete:: 2 days
Cost to complete:: DJF 100,000 to 300,000.
Name of Agency:
Comment:: Entrepreneurs must go to the Service des Patentes to obtain a license, using the registration number obtained at the registrar. This registration also serves as tax registration.

Procedure 9.: Create a company seal, letterhead and books
Time to complete:: 3 days
Cost to complete:: DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books)
Name of Agency:
Comment:

Procedure 10.: Obtain signature of the President of the Court on the company books
Time to complete:: 2 days
Cost to complete:: no charge
Name of Agency:
Comment:

Procedure 11.: Register employees with Organisation de Protection Sociale (OPS)
Time to complete:: 1-2 days
Cost to complete:: no charge
Name of Agency:
Comment:: The company must register each employee.