The Basics Of How To Register A Business In Rwanda – Rwanda is a safe investment country in the sub-Saharan Africa. Rwanda has been ranked 38 among 190 economies in the ease of doing business according to the latest World Bank annual ratings.
Is Rwanda a good country to invest in?
The answer is yes due to the following reasons:
- A steady and high growth rate (averaging over 7% in the last decade) -it is one of the most favorable business environments on the African continent
- Significant progress in governance and relative political stability
- Access to market of over 10 million people with a rapidly growing middle class,
- Untapped investment opportunities in infrastructure, agriculture, energy, Tourism, Information and communication Technology, Real Estate and construction, Finance services and mining.
Rwanda has however, placed limitations on the industries which a limited company can do business in I.e., Banking, Insurance, Finance and leasing all require the formation of a public company.
Where Do I Register A Company In Rwanda?
- You can apply for the company registration at the office of the registrar General, A department within the Rwanda Development Board located in Kigali. The application can also be submitted online.
- You can utilize the services of various consultancy firms that have the expertise to offer company registration services and other related business advisory services. If you would like to speak to a professional to guide you through the process of registering your business, Talk to an Expert or for additional information on Company Registration in Rwanda.
What is Rwanda Development Board?
Rwanda Development Board (RDB), is a government department that integrates all government agencies responsible for the attraction, retention and facilitation of investments in the national economy.
The company registration system acts as a single electronic window through which all these three services are electronically done. Once registration is complete, the company is given a unique identification number which acts as the Registration Code, the TIN number, and the social security number. However, it is necessary to register for the different taxes like VAT and PAYE at Rwanda Revenue Authority and also register employees with Rwanda Social Security Board
What Are The Required Documents For Incorporation Process?
For locals
- National ID for Rwandans
- Contact details, email address, passport size photograph.
For Foreigners
- Power of attorney to present the company in Rwanda. (Notarized)
- A duly authenticated copy of the memorandum Articles of Association. (Notarized)
- Certificate of Registration/Incorporation issued by the registration authority in the country of incorporation. (Notarized)
- Notarized resolution from the authorized agency authorizing to open a branch.
- Passport copies of the shareholders/directors.
- List of directors residing in Rwanda (at least One)
Types Of Companies That You Can Register in Rwanda
Companies are categorized into two broad categories;
A Private Company restricts the right to transfer its shares and debentures; limits the number of its shareholders to one hundred; and also prohibits any invitation to the public to subscribe for any shares or debentures of the company. If a company has only one shareholder, it is presumed to be a private company.
Public Companies refer to entities that have offered shares to the public through private placement or through an initial public offer and its securities have been listed in one or more stock exchanges
There are a number of ways entrepreneurs can set up their businesses in Rwanda, the common entity is the limited liability company (LLC). Foreign entities looking to invest and set up companies in Rwanda also have options like Rwanda Private Limited company, a Branch or a Representative Office.
Limited Liability Company in Rwanda
This is the most common entity for entrepreneur’s looking to invest in Rwanda. An LLC must appoint at least one shareholder of any nationality.
Public Limited Company in Rwanda
The law allows branches of foreign companies to be 100% foreign owned. Branches are considered separate legal entities and can have independent management and maintain a corporate bank account. A branch is therefore required to file its annual returns with the Rwanda registrar of companies.
How Easy is it to Start a Business in Rwanda?
Recent World Bank Groups” annual report on the ease of doing business ranked Rwanda the easiest place to do business in East and Central Africa, The 2nd in Africa and 56th globally. Rwanda has the fewest procedures and fastest processes to register businesses.
Can Foreigners Register Companies in Rwanda?
Yes, a foreigner can register a company in Rwanda. The government of Rwanda invites all foreign investment in all sectors with no restrictions on equity or ownership.
Can a Foreigner Buy Property in Rwanda?
Yes. Even without the Rwandan Citizenship, It’s the same for foreigners as it is for residents.
How is the Tax Regime in Rwanda?
The Tax Regime in Rwanda is Quite Straight forward with the Tax rate for personal Income ranging from 0 to 30 %, Corporation Tax is at 30% and Vat at 18%.
We hope that this article answers most of your questions on How to register a business in Rwanda. Feel free to Contact Us for more details and for help on the registration process
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