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Ease of Doing Business in

Eritrea

Eritrea Download Profile (1658.3KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 5,227,791
GNI Per Capita (US$) 591
City covered Asmara

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 189 189
0
28.05 27.94 down
0.11
Starting a Business 186 185 down
1
46.36 46.16 up
0.20
Dealing with Construction Permits 187 186 down
1
0.00 0.00
-
Getting Electricity 141 145 up
4
54.33 53.43 up
0.90
Registering Property 178 178
-
35.26 35.26
-
Getting Credit 185 185
-
0.00 0.00
-
Protecting Minority Investors 165 166 up
1
35.00 35.00
-
Paying Taxes 147 144 down
3
56.82 56.82
-
Trading across Borders 189 189
-
0.00 0.00
-
Enforcing Contracts 121 121
-
52.75 52.75
-
Resolving Insolvency 169 169
-
0.00 0.00
-

DB 2017 Rank: 186

DB 2016 Rank: 185

Change in Rank: down1

DB 2017 DTF (% points): 46.36

DB 2016 DTF (% points): 46.16

Change in DTF (% points): up0.20

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: ERN 15,000
City: Asmara
Indicator Eritrea Sub-Saharan Africa OECD high income
Procedure – Men (number) info_outline 13.0 7.8 4.8
Time – Men (days) info_outline 84.0 27.3 8.3
Cost – Men (% of income per capita) info_outline 37.6 54.0 3.1
Procedure – Women (number) info_outline 13.0 7.9 4.8
Time – Women (days) info_outline 84.0 27.5 8.3
Cost – Women (% of income per capita) info_outline 37.6 54.1 3.1
Paid-in min. capital (% of income per capita) info_outline 165.1 33.1 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Deposit initial capital in bank account

    Agency: Commercial Bank

    The minimum capital requirement is ERN 15,000 for a private limited liability company and ERN 50,000 for a share company.
    1 day no charge
    2

    Search for a company name

    Agency: Business License Office

    The search is conducted at the Business License Office.
    2 days no charge
    3

    Notarize company statutes

    Agency: Notary

    The memorandum and articles of association is signed by the shareholders before a notary, and a stamp duty is paid.
    3 days ERN 715.2
    4

    Register with the Commercial Registry

    Agency: Business License Office

    To register with the Commercial Registry, five or six copies of the memorandum and articles of association must be submitted at the License Department of the Ministry of Trade and Industry.
    7 days no charge
    5

    Publish the incorporation notice in the official journal

    Agency: Ministry of Information

    An incorporation notice is published (in both Arabic and English) in the official journal, Hadas Eritrea, announcing the company incorporation. Protestors have 30 days to contest the company’s incorporation and name.
    33 days ERN 600 –1000
    6

    Apply for a tax identification number (TIN)

    Agency: Inland Revenue Department

    Once the company registers at the Inland Revenue Department for the taxpayer identification number, it is recognized as a VAT taxpayer.
    7 days no charge
    7

    Obtain tax clearance from the Inland Revenue Department

    Agency: Inland Revenue Department

    All new businesses must obtain tax clearance from the Inland Revenue Department.
    1 day no charge
    8

    Apply for a business license

    Agency: Ministry of Trade and Industry

    A business license application requires tax clearance and property title documents. The cost of the business license ranges from ERN 500 to ERN 1,000.
    14 days ERN 500
    * 9

    Receive inspection from the Ministry of Trade and Industry

    Agency: Ministry of Trade and Industry

    The business license inspection, required for zoning purposes, may take only a day, but it also will take several days to set up an appointment.
    7 days (simultaneous with previous procedure) ERN 500
    10

    Obtain approval from the local municipality

    Agency: Local municipality

    All new businesses must obtain approval from the local municipality.
    2 days ERN 100-500
    11

    Notify the Ministry of Labor and Human Welfare

    Agency: Ministry of Labor and Human Welfare

    All companies must notify the Ministry of Labor and Human Welfare by completing the registration form and submitting it to the Ministry for approval.
    1 day no charge
    12

    Make a company seal

    Agency: Seal maker

    The practice is not regulated, but the seal typically includes the tax code for the company.
    3 days ERN 400
    13

    Apply for tax receipts from the Inland Revenue Department

    Agency: Inland Revenue Department

    The company may either print the receipts directly at the Inland Revenue Department or obtain permission to print them itself.
    10 days ERN 200 for 10 packs of receipts

    * Takes place simultaneously with previous procedure.