Eritrea

Ease of Doing Business in

Eritrea

This page summarizes Doing Business 2016 data for Eritrea. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Sub-Saharan Africa
Income Category Low income
Population 6,536,176
GNI Per Capita (US$) 530
City covered Asmara
Doing Business 2016 Rank Doing Business 2015 Rank
X

DOING BUSINESS 2015 RANK

Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

Change in Rank
189 189 0

Doing Business 2016 DTF (% points)
X

DISTANCE TO FRONTIER SCORE

The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

Doing Business 2015 DTF (% points)
X

DISTANCE TO FRONTIER SCORE

The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

Change in DTF (% points)
X

DISTANCE TO FRONTIER SCORE

The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

27.61 27.40 down 0.21

Starting a Business

X

Starting a Business

The steps of launching a business are shown below. Included are: the number of procedures entrepreneurs can expect to go through to start up and formally operate an industrial or commercial business, as well as the time and cost to complete these procedures and the paid-in minimum capital requirement as a percentage of gross national income (GNI) per capita.

DB 2016 Rank 184 DB 2015 Rank
X

DOING BUSINESS 2015 RANK

Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

183 Change in Rank down-1
DB 2016 DTF (% points)
X

DISTANCE TO FRONTIER SCORE

The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

46.16 DB 2015 DTF (% points)
X

DISTANCE TO FRONTIER SCORE

The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

44.81 Change in DTF (% points)
X

DISTANCE TO FRONTIER SCORE

The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

up1.35

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Eritrea Sub-Saharan Africa OECD high income
Procedures (number)
X

Procedures (number)

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

View methodology

13 8.0 4.7
Time (days)
X

Time (days)

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

View methodology

84.0 26.8 8.3
Cost (% of income per capita)
X

Cost (% of income per capita)

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology

38.1 53.4 3.2
Paid-in min. capital (% of income per capita)
X

Paid-in min. capital (% of income per capita)

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology

167.2 45.1 9.6
No. Procedure Time to Complete Associated Costs
1 Deposit initial capital in bank account 1 day no charge
2 Search for a company name 2 days no charge
3 Notarize company statutes 3 days ERN 715.2
4 Register with the Commercial Registry 7 days no charge
5 Publish the incorporation notice in the official journal 33 days ERN 600 –1000
6 Apply for a tax identification number (TIN) at the Inland Revenue Department 7 days no charge
7 Obtain tax clearance from the Inland Revenue Department 1 day no charge
8 Apply for a business license at the Ministry of Trade and Industry 14 days ERN 500
* 9 Receive inspection from the Ministry of Trade and Industry 7 days (simultaneous with previous procedure) ERN 500
10 Obtain approval from the local municipality 2 days ERN 100-500
11 Notify the Ministry of Labor and Human Welfare 1 day no charge
12 Make a company seal 3 days ERN 400
13 Apply for tax receipts from the Inland Revenue Department 10 days ERN 200 for 10 packs of receipts
  * Takes place simultaneously with another procedure.

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