Djibouti, located in the Horn of Africa, is a small country that offers many business opportunities to entrepreneurs. If you are considering starting a business in Djibouti, it is important to understand the process of registering a business in the country.
In this article, we will guide you through the steps you need to take to register a business in Djibouti.
Table of Contents
Step 1: Choose a Business Structure
The first step in registering a business in Djibouti is to choose the appropriate business structure. The most common forms of business structures in Djibouti are sole proprietorship, partnership, limited liability company (LLC), and public limited company (SA).
A sole proprietorship is the simplest and most common business structure. It is owned and managed by one person who is responsible for all business decisions and liabilities.
A partnership is owned and managed by two or more partners who share the profits and losses of the business.
An LLC is a separate legal entity that provides limited liability protection to its owners. It is owned and managed by one or more members.
A public limited company (SA) is a separate legal entity that is owned by shareholders. The company is managed by a board of directors and the liability of shareholders is limited to their investment in the company.
Step 2: Choose a Business Name
Once you have decided on the business structure, you need to choose a name for your business. The name must be unique and not already registered by another business in Djibouti. You can check the availability of the name at the National Centre of Intellectual Property.
Step 3: Obtain a Business License
To operate a business in Djibouti, you need to obtain a business license from the Ministry of Commerce and Industry. The license application form can be obtained from the Ministry of Commerce and Industry or downloaded from their website.
You will need to provide the following documents to obtain a business license:
A copy of your ID card or passport
A copy of your residence permit (if you are a foreigner)
A copy of your business plan
A copy of your lease agreement or proof of ownership of your business premises
Step 4: Register with the Tax Authorities
Once you have obtained a business license, you need to register with the tax authorities. You will need to obtain a tax identification number (TIN) from the Directorate General of Taxes.
Step 5: Register with the Social Security Office
If you plan to hire employees, you need to register with the Social Security Office. You will need to provide the following documents:
A copy of your business license
A copy of your ID card or passport
A copy of your lease agreement or proof of ownership of your business premises
A list of your employees
Step 6: Open a Bank Account
To operate a business in Djibouti, you need to have a local bank account. You can open a bank account with any of the local banks such as Banque pour le Commerce et l’Industrie – Mer Rouge, Banque Internationale pour le Commerce et l’Industrie du Djibouti (BICID), and Banque de Djibouti et du Moyen Orient (BDME).
Step 7: Register with the Chamber of Commerce
Finally, you need to register with the Chamber of Commerce. The Chamber of Commerce provides various services to businesses such as business advice, training, and networking opportunities.
Generis Global Can Help You with Your Business in Djibouti
Starting a business in Djibouti can be a complex process, and it is important to comply with all legal requirements. At Generis Global, we can help you with the legal part of your business journey in Djibouti.