Business entities in Afghanistan

different types of legal entities to be setup in Afghanistan Healy Consultants will advise our Client with determining the optimum corporate structure for satisfying their business needs. Generally, the most commonly preferred business entity is the limited liability company. However, our Clients may also choose either to incorporate a corporation or register a branch office. For more details, please refer to the information below.

Limited liability company

  • This Afghanistan business setup is recommended for entrepreneurs looking to enter the country. Under this entity, the shareholders can only be liable to the extent of capital invested in the company;
  • The LLC can be incorporated with 1 director and 2 shareholders, all of whom can be non-Afghan residents. However, a resident company agent and a board of supervisors must also be appointed. Lastly, there is no mandated minimum share capital requirement for the setup of this entity.


  • Alternatively, our Clients may choose to setup a corporation. This Afghanistan business setup is recommended when our Clients wish to issue shares to the public;
  • Like an LLC, a corporation must have i) 1 director & 2 shareholders ii) resident company agent and iii) a board of supervisors.

Branch Office

  • Lastly, our corporate Clients can register a branch of their entities in Afghanistan. The branch entity will not be considered separate from its parent entity. Therefore, the parent entity will be liable for all losses incurred by its branch office;
  • While a branch office will not appoint directors or shareholders, it will be required to appoint 1 legal agent, who must be resident in the country.

Comparison of Afghanistan entities

 LLCBranch officeCorporation
How long to set the company up?7 weeks8 weeks8 weeks
How long to open company bank account?4 weeks4 weeks4 weeks
Legal liability?LimitedUnlimitedLimited
Wholly foreign owned?YesN/AYes
Minimum share capital?US$1N/AUS$1
File annual tax return?YesYesYes
Tax registration certificate required?YesYesYes
Recommended corporate bank account?Afghanistan International BankNew Kabul BankAzizi Bank
Does our Client need to travel?NoNoNo
Resident director required?NoN/ANo
Resident shareholder required?NoN/ANo
Minimum directors required?1N/A1
Minimum shareholders?2N/A2
Tax identification code (TIN) needed?YesYesNo
Afghanistan resident company agent required?YesYesYes
Corporate shareholders allowed?YesN/AYes
Corporate director(s) allowed?NoN/ANo
Afghanistan corporate tax rate?20%20%20%
Annual financial statements required?YesYesYes
Statutory audit required?YesYesYes
Regulated by?Afghanistan Central Business RegistryAfghanistan Central Business RegistryAfghanistan Central Business Registry
Allowed to issue sales invoices?YesYesYes
Allowed to sign contracts?YesYesYes
Allowed to import and export goods?YesYesYes
Can rent an office space in Afghanistan?YesYesYes
Can buy Afghanistan property?YesYesYes
Can own equity in other Afghanistan companies?YesYesYes
Total Afghanistan business setup costs in Yr. 1US$30,650US$33,550US$30,450
Subsequent annual costs (incl. accounting and tax fee)US$11,150US$12,150US$11,050
Sample engagement invoiceView invoice PDFView invoice PDFView invoice PDF

Contact us

For additional information on our business setup services in Afghanistan, please contact our in-house country expert, Ms. Lee Wen Bin, directly:
Consultant at HC - Wen Bin
  • Ms. Lee Wen Bin
  • Client Engagements Department, Deputy Director
  • Contact me!