Business entities in Eritrea

Business entities in Eritrea

Healy Consultants will assist our Clients to incorporate the optimal corporate structure in Eritrea. There are several ways of doing business in Eritrea, the most common being the setting up of a limited liability company. Foreign entrepreneurs may also opt to set up a corporation, limited liability partnership, a branch office or a representative office.

The Eritrea limited liability company (LLC)

Setup company in Eritrea
The Eritrean LLC requires only 1 director and 1 shareholder of any nationality for incorporation process to be approved by the Commercial Registry at the Ministry of Trade and Industry. The minimum paid-up capital required at incorporation is US$1,500. After company setup, all LLCs must submit annual audited financial statements to the commercial registry.

The Eritrea public limited company (PLC)

The Eritrea public limited company is commonly used by investors who would like to trade shares on regulated commercial markets. The minimum paid-up share capital required to complete the incorporation process is US$3,500. A PLC must also appoint at least one director and one shareholder who can be of any nationality. An Eritrean corporation must submit annual audited financial statements.

The Eritrea branch office

  • Eritrea Law allows foreign entities to establish and operate branch offices for their foreign companies. An Eritrean branch office’s scope of operations is defined by the parent company;
  • This entity must appoint a legal representative or agent who is authorized to accept service of court processes and other official government documents on behalf of the parent company, and who must reside in Eritrea;
  • Also, the branch office must have a registered address in Eritrea with a post office to which all communications and notices may be addressed and must maintain statutory records in this office.

Table of comparison between Eritrea entities

Also known asPrivate limited companyShare companyBranch of a foreign company
How long to set the company up?17 weeks19 weeks20 weeks
How long to open company bank account?4 weeks5 weeks6 weeks
Legal liability?LimitedLimitedUnlimited
Wholly foreign owned?YesYesYes
Minimum paid - up share capital?US$1,500US$5000N/A
File annual tax return?YesYesYes
Tax registration certificate required?YesYesYes
Recommended corporate bank account?Commercial Bank of EritreaEID BankHousing and Commerce Bank of Eritrea
Does our Client need to travel?NoNoNo
Resident director required?NoNoNo
Resident shareholder required?NoNoNo
Minimum directors allowed?111
Minimum shareholders?111
Tax identification code needed?YesYesYes
Eritrea resident company secretary required?NoNoNo
Corporate shareholders allowed?YesYesYes
Corporate director(s) allowed?YesYesYes
Statutory audit required?YesYesYes
Eritrea corporate tax rate?34%34%34%
Annual financial statements required?YesYesYes
Regulated by?Ministry of Trade and IndustryMinistry of Trade and IndustryMinistry of Trade and Industry
Allowed to issue sales invoices?YesYesYes
Allowed to sign contracts?YesYesYes
Allowed to import and export goods?YesYesYes
Can rent an office space in Eritrea?YesYesYes
Can buy Eritrea property?YesYesYes
Total Eritrea business setup costs in yr. 1?US$14,650US$16,750US$15,350
Subsequent annual costs (incl. accounting and tax fee)?US$4,250US$5,520US$5,100
Sample engagement invoice?Eritrea LLC invoiceEritrea PLC invoiceEritrea branch invoice

Contact us

For additional information on our business setup services in Eritrea, please email us at Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
client relationship officer - Grace