Obtain an electronic signature
Agency: Rwanda Development Board (RDB)
The documents required to obtain an electronic signature are:
- Proof of identity (Simple copy) of the managing director or of one of the shareholders of the company being formed or of an authorized representative. Scanned copy of the ID.
- Contact Details of the managing director or of one of the shareholders of the company being formed or of an authorized representative.
- Email account of the managing director or of one of the shareholders of the company being formed or of an authorized representative.
The e-signature contains the user name and password which are used to log into the system for the registration process. The e-signature used to apply for business registration must be of the managing director or of one of the shareholders of the company being formed or of an authorized representative with powers of attorney.
To obtain an electronic signature, applicants sign up with their email addresses and scan their ID cards to be attached to the account application. Once the account is set up, a registration number is generated to enable users to proceed to online registration. This registration number is also the tax identification number (TIN) and VAT number of the company.
Time and cost: Less than 1 day (online procedure), no charge
Register the company
Agency: Rwanda Development Board (RDB)
Online company registration has become mandatory as of February 17th, 2014. It is free of charge. Entrepreneurs need to check the uniqueness of their company name first, then they can submit the company documents and obtain an electronic copy of the registration certificate online as well as an electronic copy of their notification on tax duties and obligations. The dossier is subsequently transferred to the Rwanda Revenue Authority (RRA) and all relevant entities’ representatives to assign the new company with identification numbers. The company code issued is the same number for social security, tax identification and VAT.
The required documents for submission are:
- Duly completed online application
- Proof of identity (Simple copy) for each signatory of the memorandum of association form. The documents need to be scans of the national ID for Rwandans
- Name of the designated chairperson of the board of directors
Starting in July of 2015, VAT registration can be completed during the online registration process. Any person who carries out taxable activities exceeding twenty million Rwandan Francs (20,000,000 RWF) of in the previous fiscal year, or five million Rwandan Francs (5,000,000 RWF) in the preceding calendar quarter is required to register for VAT at the Rwanda Development Board within a period of seven (7) days from the end of the year or from the end of the quarter mentioned above.
Typically, business entrepreneurs complete online company registration from a Business Development Center or from the Rwandan Development Board offices. This is due to lack of knowledge about the online portal, as it is still a very new system.
Time and cost: 1 day, no charge
Obtain and install software for VAT invoices
Agency: Rwanda Revenue Authority
In order to issue invoices, taxpayers subject to VAT have to obtain an electronic billing machine, per Ministerial Order No. 002/13/10TC of 31/07/2013, published in Official Gazette No. 34 of 26/08/2013. Since March 2018, instead of acquiring a machine, a software for printing VAT invoices can be installed at the Rwandan Revenue Authority, allowing taxpayers to issue invoices from any printer.
Time and cost: 1 day, no charge
Register employees at the Social Security Office
Agency: Rwanda Social Security Board (RSSB)
In order to register employees for social security, the employer must go to the Social Security Office to provide the employees’ information on a flash disc. This information is uploaded within 2 hours. Filing of returns is done quarterly. This procedure has been available online since December 2013.
Time and cost: Less than 1 day (online procedure), no charge
Obtain a trading license (“patente”)
Agency: Tax Administration – Sector Level
Every company needs to have a trading license (“patente”). The cost of the trading license depends on the company’s annual turnover and the type of business – for companies with a turnover above 40,000,000, the trading license costs RWF 90,000 (based on Law No. 59/2011 of December 31, 2011). The new company must go to the tax administration at the Sector level where the company is located. Small and medium enterprises are exempt of fees for a period of 2 years.
Time and cost: 1 day, small and medium enterprises are exempt of fees for a period of 2 years
