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)

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