Ease of Doing Business in


Somalia Download Profile (1593KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 10,787,104
GNI Per Capita (US$) 510
City covered Mogadishu



DB 2017 Rank



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 190 190
20.29 20.24 down
Starting a Business 184 183 down
48.71 48.27 up
Dealing with Construction Permits 187 186 down
0.00 0.00
Getting Electricity 188 188
0.00 0.00
Registering Property 148 149 up
47.97 47.95 up
Getting Credit 185 185
0.00 0.00
Protecting Minority Investors 190 190
0.00 0.00
Paying Taxes 190 190
0.00 0.00
Trading across Borders 156 156
51.60 51.60
Enforcing Contracts 109 107 down
54.58 54.58
Resolving Insolvency 169 169
0.00 0.00

DB 2017 Rank:


DB 2016 Rank:


Change in Rank:


DB 2017 DTF (% points):


DB 2016 DTF (% points):


Change in DTF (% points):


Legal form Corporation
Paid-in minimum capital requirement SOS 0
City Mogadishu
Indicator Somalia Sub-Saharan Africa OECD high income
Procedure – Men (number) info_outline 9 7.8 4.8
Time – Men (days) info_outline 70 27.3 8.3
Cost – Men (% of income per capita) info_outline 176.5 54.0 3.1
Procedure – Women (number) info_outline 9 7.9 4.8
Time – Women (days) info_outline 70 27.5 8.3
Cost – Women (% of income per capita) info_outline 176.5 54.1 3.1
Paid-in min. capital (% of income per capita) info_outline 0 33.1 9.2
  • No. Procedure Time to Complete Associated Costs

    Hire a notary and complete the name reservation form

    Agency: Notary Public

    Business entrepreneurs should complete a name reservation form at the Notary Public's office.

    1 day no charge

    Notary verifies the uniqueness of company name

    Agency: Ministry of Commerce and Industry

    The Notary Public takes the name reservation form to the Ministry of Commerce and Industry to verify whether the name has been registered before or not. Ministry officials consult a printed list of the current company names in use. As of June 2016, this list had approximately 990 names.

    Name reservation is not mandatory in Somalia and is a recent practice.

    3 days no charge

    Draft the Memorandum of Understanding and the Articles of Association and notarize the incorporation documents

    Agency: Notary Public

    The Notary Public drafts the Memorandum of Understanding and the Articles of Association and notarizes them.

    The Notary Public will also require the following:
    - Company Details
    - Request letter including:
    a) The shareholders contact information
    b) Percentage of the shares
    c) The trade name and logo of the company must be written
    d) Both a physical address and a postal address
    - Copy of Passport
    - Two photos of passport size

    Notary fees are typically USD 100.

    7 days USD 100

    Register the company and pay for the commercial license and the business certificate

    Agency: Ministry of Commerce and Industry (Department of Licenses)

    There is not an official fee schedule for business registrations. The cost is based on the practice. However, in many cases it is subject to negotiation. Therefore, some investors could pay more or less depending on their negotiation skills.

    The business certificate obtained at the Municipality will need to be posted at the front door of the company's premises.

    1 day USD 300 for the commercial license + USD 120 dollars for the business certificate

    Apply for the business certificate at the Ministry of Commerce and Industry

    Agency: Ministry of Commerce and Industry (Department of Business Registration Issuing)

    Business entrepreneurs apply for a business certificate at the the Office of the Ministry of Commerce and Industry, where the application is circulated internally for approval from three different departments. The Department of Archive collects all application requests by verifying the requirements needed from the new business. Then the Director General of the Department of Business Registration issues confirmation and sends the submitted documents to the Attorney General's office for his or her approval. After obtaining the approval of the attorney general, the business license is sent to the Office of the Ministry of Commerce and Industry for the Minister's signature (the Deputy Minister in case of absence of the Minister).

    The required documents to apply for the business certificate are:
    - the notarized incorporation documents;
    - handwritten request letter signed and seal by the representative of the new company;
    - 2 photos passport size and personal Identification documents (usually passport).

    In May of 2016, the government started a plan to issue a national identity card, but it is not in place yet.

    30 days no charge

    Open a bank account

    Agency: Commercial bank

    Between 2015 and 2016, five commercial banks started operations in Mogadishu, Somalia (e.g., International Bank of Somalia, Dahshal Bank and Premia Bank). It typically takes between 2 and 5 business days to open a bank account and a background check is not done because there is no personal history data available yet.

    No minimum capital required to start a business in Somalia. However, proof of a bank account is required to obtain a commercial local license.

    2 - 5 days on average no charge

    Obtain the commercial local license at the Department of Issuing Permits of the Mogadishu Municipality

    Agency: Department of Issuing Permits of the Mogadishu Municipality

    The required documents are as follows:
    - handwritten request letter;
    - passport identification documents;
    - proof of a bank account.

    In some cases, the business certificate obtained at the Ministry of Commerce and Industry is also attached.

    Most commonly, small business are the ones requesting the commercial local license at the Municipality. Larger companies typically only apply for the commercial license at the Ministry of Commerce and Industry. The cost is based on regular practice, but it varies depending on the negotiation skills of the person requesting the commercial local license.

    12 days USD 225

    Register with the Chamber of Commerce

    Agency: Chamber of Commerce

    Companies usually register at the Chamber of Commerce. It is not mandatory, but it is a regular practice to become a member of the Chamber of Commerce.

    5 day USD 130

    Purchase a company seal

    Agency: Private shop or sealmaker

    Although not required by law, entrepreneurs should purchase a company seal before formally beginning business operations as it is commonly used in business operations. Depending on how assertive and persistent the business entrepreneurs are with the sealmaker, it can take between 3 and 10 days.

    3 - 10 days on average USD 25