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.
Time and cost: 1 day, no charge
Search for a company name
Agency: Business License Office
The search is conducted at the Business License Office.
Time and cost: 2 days, no charge
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.
Time and cost: 3 days, ERN 715.2
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.
Time and cost: 7 days, no charge
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.
Time and cost: 33 days, ERN 600 –1000
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.
Time and cost: 7 days, no charge
Obtain tax clearance from the Inland Revenue Department
Agency: Inland Revenue Department
All new businesses must obtain tax clearance from the Inland Revenue Department.
Time and cost: 1 day, no charge
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.
Time and cost: 14 days, ERN 500
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.
Time and cost: 7 days (simultaneous with previous procedure), ERN 500
Obtain approval from the local municipality
Agency: Local municipality
All new businesses must obtain approval from the local municipality.
Time and cost: 2 days, ERN 100-500
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.
Time and cost: 1 day, no charge
Make a company seal
Agency: Seal maker
The practice is not regulated, but the seal typically includes the tax code for the company.
Time and cost: 3 days, ERN 400
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.
Time and cost: 10 days, ERN 200 for 10 packs of receipts
