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Eritrea - Apply for Business Certificate of Incorporation

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ProcedureEdit

To obtain a certificate of Incorporation, a company must be registered and in order a company must be created.

1. To create a company, an applicant should start by opening up a back account for the new company. If the company has no name, an account can be opened under the name company being created.

2. Proceed with depositing the initial capital into the bank account. (if an account has not yet been created, the capital may be deposited in the office of a selected lawyer of the new company);

3. The applicants must then find a new for the company to be incorporated. In this case a name is suggested, then applicants are required to go to the commercial registry to find if the name is available for use;

4. Thereafter, applicants should proceed with drafting and signing the memorandum and articles of association. Usually these are drafted by a notary / lawyer and signed by the shareholder; and a stamp duty should be inserted;

5. After the above, the applicants proceed with registration of company with the commercial registry. In this case, the applicant submit signed and stamped copies of memorandum and articles of association to the license department of the Ministry of Trade and Industry;

6. Incorporation of the new company is then published in an official journal. The publication runs for a minimum of thirty (30) days to allow delivery of any objections from public;

7. When no objections are received, the applicants proceed with obtaining a Tax Identification Number (TIN). This is done by registering at the Inland Revenue Department;

8. After registration with the tax department, the applicants must obtain a tax clearance certificate from the Inland Revenue Department.

9. Then obtain a business license (certificate of Incorporation) from the Ministry of Trade and Industry. This is done by submitting copies of property title documents and a copy of tax clearance certificate.

10. When application for a business license is submitted, an inspector from the ministry will visit the applicants office and carry out an inspection.

11. The applicants must also obtain an approval from the local municipality where company is situated;

12. The applicants then proceed with notifying the Ministry of Labor and Human Welfare of the existence of company. This is done by obtaining, filling and submitting a registration form for approval;

13. After approval by the ministry, the applicants are also advised to make a company seal which must include the tax code for the company;

14. There after applicants may also decide to request for tax receipts from the Inland Revenue Department. The receipts can be printed at the revenue department or an authorization may be given to print them from somewhere else;




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Required DocumentsEdit

1.Photocopy of ID Cards or valid passports and permanent resident addresses of shareholders

2.Property title documents

3.Recommendation for local authorities where company is located

4.Copies of the police clearance certificate of the manager(s).



Office Locations & ContactsEdit

1.Ministry of Trade and Industry

P. O Box 1844 Asmara

Telephone: 118 386 / / 117 717

Fax: 120 586

E-Mail: [email protected]

2.Ministry of Labor and Human Welfare

P. O Box 5252 Asmara

Telephone: 182 886 / 181 846

Fax: 182 760

3.Commercial registrar

Ministry of Justice

P.O Box 241Asmara

Telephone: 117 603 / 127 739 / 127 740

Fax: 126 422



EligibilityEdit

Anyone who wishes to start up business can apply for a business certificate of incorporation in Eritrea.



FeesEdit

  1. Drafting, signing and stamping the memorandum and articles of association for companies with ERN 715.2
  2. Publication in a journal ERN 600 1000
  3. Registration at the Inland Revenue Department ERN 450
  4. Business license between ERN 500 to ERN 1,000
  5. Inspection of company by Ministry of Trade and Industry ERN 500
  6. Approval from local authorities ERN 100-500
  7. Company seal ERN 400
  8. Tax receipts ERN 200 for 10 packs of receipt



ValidityEdit

The certificate of incorporation can be cancelled upon acting contrary to the laws of the country.


Documents to UseEdit

Please attach documents that can be used by people. e.g. links



Sample DocumentsEdit

Please attach sample completed documents that would help other people.



Processing TimeEdit

About a minimum of three (3) months.



Related VideosEdit

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M".



InstructionsEdit

1.Before applying ensure that the new company meets the minimum capital requirements (ERN 15,000 for a private limited liability company and ERN 50,000 for a share company);

2.Proposed company name must not violate any copyrights, trademarks or intellectual property relevant to Eritrea;

3.Publication in a Eritrean journal is a minimum of thirty (30) days;

4.Registration with the Inland revenue department, gives recognition of a company as a VAT taxpayer;

5.It is advised that the company finds a lawyer to always help the company in matters regarding the law;

6.Bylaws, articles and memorandum of association for the company must be drafted, signed and stamped in presence of a lawyer;

7.Copies of signed bylaws, articles and memorandum of association for the business must be kept in the office of the lawyer;;



Required InformationEdit

  1. Full name and address of applicant(s) / shareholders
  2. Sex, Age and marital status of applicant(s) / shareholders
  3. Company name and address
  4. The share capital of the company
  5. Proposed activities to be carried out by the incorporated company
  6. limitation of authority / powers of shareholders / directors
  7. The shareholding of each shareholder (where applicable).



Need for the DocumentEdit

A certificate of incorporation is an authorized proof of registration of a company or corporation by the government. In Eritrea for the process of incorporation to be successful, applicants have to visit the office of the commercial registrar, and several ministry departments for registration



Information which might helpEdit

After the process of registration is done, a business certificate has be issued, applicants must also have the following documents

  • Memorandum and Articles of Association;
  • A Tax Identification Number (TIN)
  • Approval from local authority
  • Proof of publication in a local legal journal
  • Tax receipts and a Tax Clearance Certificate



Other uses of the Document/CertificateEdit

  • Creation of job / employment opportunities;
  • Formal recognition of company by government;
  • Supply of new goods and services on the local market;
  • Registration enables easy tax collection.



External LinksEdit

http://www.doingbusiness.org/data/exploreeconomies/eritrea/starting-a-business



OthersEdit

More information which might help people.


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