Business Registration - Eritrea

Registering a business in Eritrea

The Business Licensing Office (BLO) was established in 1995 in Proclamation No. 72/1995 (amended in Proclamation No. 128/2002) and its name changed to Business Licensing and Registration Division (BLRD). The BLRD has the mandate of registering businesses in Eritrea.

The registration of companies and trade names are only done at the headquarters of the BLRD in Asmara. Except for company registration, all other activities of the BLRD are also carried out in all the administrative regions. Since its establishment, the business licensing and registration has been endeavoring to improve its services.

Steps in business/company registration: Principal registration of different forms of business

1- Sole business person
  Recent passport size photo,
  A prior business and operating license, if any,
  A power of attorney where an agent signs the application, and 
  A permit from the concerned partnership.

2- Commercial partnership
  A notice published pursuant to the Transitional Commercial Code of Eritrea,
  A power of attorney where an agent signs the application, and 
  A Memorandum of Association of Contract of Partnership.

3- Share Company
  A notice published pursuant to the Transitional Commercial Code of Eritrea,
  A power of attorney where an agent signs the application,
  A  bank statement showing that the amount required to be deposited in a bank has been deposited as required by the Transitional Commercial Code of Eritrea,
  A copy of share certificates for each class of shares, and 
  A report of any contribution in kind, if any, drawn up in accordance to the Transitional Commercial Code of Eritrea.

4- Private Limited Company
  The Memorandum of Articles and Association,
  A notice published pursuant to the Transitional Commercial Code of Eritrea, and 
  A power of attorney where an agent signs the application.

CRITERIA FOR APPLYING FOR A BUSINESS LICENSE

As per Article 8 of the Proclamation No. 128/2002, an applicant should fulfill the following criteria:

1- Be at least 18 years of age,
2- Be a person who knows and understands the conditions/requirements for operating, conducting or carrying on business activity for which he is applying, 
3- Not be a person who is judicially interdicted, interdicted by law or is insane as defined under the provisions of the Civil Code of Eritrea, 
4- Not be an employee of the public service, 
5- Produce a permit from the Zoning Section of the respective local municipality,
6- Evidence of property title/rental contract of business premises, and  
7- Produce permit from relevant government body/sector, and 
8- Produce clearance or no objection letter from the Inland Revenue Department.

WINDING UP (CLOSING) A BUSINESS

The Business Licensing and Registration Office has the responsibility to issue a certificate of deletion for business licenses, if the following documents are provided:

•    Supporting letter from the concerned government body/sector, and
•    Clearance or no objection letter from the Inland Revenue Department and Municipality.

It is important to formally wind up a business because if this is not done, business licenses are considered as active and thus the licensee is liable to pay the annual license renewal fees. In addition, no other licenses can be issued if there is a license/s not formally wound up.