Business entities in Eritrea

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

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

  LLC PLC Branch
Also known as Private limited company Share company Branch of a foreign company
How long to set the company up? 17 weeks 19 weeks 20 weeks
How long to open company bank account? 4 weeks 5 weeks 6 weeks
Legal liability? Limited Limited Unlimited
Wholly foreign owned? Yes Yes Yes
Minimum paid - up share capital? US$1,500 US$5000 N/A
File annual tax return? Yes Yes Yes
Tax registration certificate required? Yes Yes Yes
Recommended corporate bank account? Commercial Bank of Eritrea EID Bank Housing and Commerce Bank of Eritrea
Does our Client need to travel? No No No
Resident director required? No No No
Resident shareholder required? No No No
Minimum directors allowed? 1 1 1
Minimum shareholders? 1 1 1
Tax identification code needed? Yes Yes Yes
Eritrea resident company secretary required? No No No
Corporate shareholders allowed? Yes Yes Yes
Corporate director(s) allowed? Yes Yes Yes
Statutory audit required? Yes Yes Yes
Eritrea corporate tax rate? 34% 34% 34%
Annual financial statements required? Yes Yes Yes
Regulated by? Ministry of Trade and Industry Ministry of Trade and Industry Ministry of Trade and Industry
Allowed to issue sales invoices? Yes Yes Yes
Allowed to sign contracts? Yes Yes Yes
Allowed to import and export goods? Yes Yes Yes
Can rent an office space in Eritrea? Yes Yes Yes
Can buy Eritrea property? Yes Yes Yes
Total Eritrea business setup costs in yr. 1? US$14,650 US$16,750 US$15,350
Subsequent annual costs (incl. accounting and tax fee)? US$4,250 US$5,520 US$5,100
Sample engagement invoice? View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our business setup services in Eritrea, please contact our in-house country expert, Ms. Lim Zhi Qing, directly:
Consultant at HC - zhiqing
EMOI ENCC COMESA HCBE