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How To Start A Business in Eritrea

How to Start a Business in Eritrea - Step by Step Guidelines

Eritrea offers unique opportunities in sectors such as mining, fisheries, agriculture, infrastructure, and tourism. The government maintains a centralized approach to investment through the Eritrean Investment Centre under the Ministry of Trade and Industry.

Step-by-Step Procedure for Local Entrepreneurs

  1. Choose a Legal Structure:
    Determine your preferred business type—Sole Proprietorship, Partnership, or Limited Liability Company.
  2. Register Business Name:
    Submit a name reservation application to the Business Licensing and Registration Department at the Ministry of Trade and Industry.
    Estimated Duration: 1–3 working days
  3. Draft the Business Constitution:
    Prepare Articles of Association and other founding documents with legal assistance if needed.
  4. Apply for a Business License:
    Submit your application along with the business plan, identity documents, and Articles to the Ministry of Trade and Industry.
    Estimated Cost: Varies by activity and scale (typically ERN 1,000 to ERN 10,000+)
  5. Obtain Tax Identification Number (TIN):
    Register with the Eritrean Revenue and Customs Authority to obtain a TIN for tax purposes.
  6. Register with the Municipality:
    Ensure compliance with local municipal regulations including location approval and signage.
  7. Social Security Registration:
    If hiring employees, register with the Social Security Office under the Ministry of Labor and Human Welfare.

Additional Steps for Foreign Investors

  1. Submit Investment Proposal to Eritrean Investment Centre:
    All foreign investment must be approved by the Eritrean Investment Centre, which evaluates project viability.
  2. Obtain Investment Certificate:
    If approved, you will receive an investment certificate and incentives depending on sector and location.
  3. Apply for Work and Residency Permits:
    Submit applications to the Department of Immigration and Nationality for any foreign staff.
  4. Open a Local Bank Account:
    Required for capital deposits, operations, and foreign currency registration through the Bank of Eritrea.

Useful Resources

Disclaimer: This content is provided for informational purposes only. Due to the evolving regulatory environment in Eritrea, businesses are encouraged to verify procedures and requirements with official government institutions or consult legal and investment professionals before proceeding.