Starting Business in Eritrea

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Eritrea. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy’s per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2015.

Business in Eritrea
No Procedure Time to Complete Associated Cost
Deposit initial capital in bank account
Agency: Commercial Bank
1 The minimum capital requirement is ERN 15,000 for a private limited liability company and ERN 50,000 for a share company.
Search for a company name
Agency: Business License Office
1 day no charge
2 The search is conducted at the Commercial Registry.
Notarize company statutes
Agency: Notary
2 days no charge
3 At this point, the memorandum and articles of association will have been signed by the shareholders, and a stamp duty will have been paid.
Register with the Commercial Registry
Agency: Business License Office
3 days ERN 715.2
4 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.
Publish the incorporation notice in the official journal
Agency: Ministry of Information
7 days no charge
5 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.
Apply for a tax identification number (TIN) at the Inland Revenue Department
Agency: Inland Revenue Department
33 days ERN 600 –1000
6 Once the company registers at the Inland Revenue Department for the taxpayer identification number, it is recognized as a VAT taxpayer.
Obtain tax clearance from the Inland Revenue Department
Agency: Inland Revenue Department
7 days no charge
7 All new businesses must obtain tax clearance from the Inland Revenue Department.
Apply for a business license at the Ministry of Trade and Industry
Agency: Ministry of Trade and Industry
1 day no charge
8 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.
Receive inspection from the Ministry of Trade and Industry
Agency: Ministry of Trade and Industry
14 days ERN 500
9 The business license inspection, required for zoning purposes, may take only a day, but it also will take a day to set up an appointment.
Obtain approval from the local municipality
Agency: Local municipality
7 days (simultaneous with previous procedure) ERN 500

source: http://www.africa2trust.com/how-to-start-a-business/?l=1&c=17