Your Complete Guide to Company Registration in Rwanda
Investors should strongly consider Rwanda for business due to its impressive economic growth and ease of doing business. According to the World Bank’s Doing Business report, the country ranks as the 38th best economy for its efficiency in regulatory processes.
And to make the process even straightforward 3E Accounting offers streamlined solutions for efficient company registration in Rwanda.
Things to Know Before Registering a Company in Rwanda
Before moving to the process, here’s what you should initially know:
The preferred company for foreigners in Rwanda is the Limited Liability Company (LLC), referred to as a Private Limited Company (Ltd.). It offers limited liability protection to its owners, separating personal and business assets. Moreover, Rwanda also allows the establishment of branch offices and representative office for foreign companies, enabling them to expand their brand presence and operations within the country.
An LLC (Private Limited Company) in Rwanda requires a minimum of 1 and maximum of 100 shareholders. 100% foreign shareholding is allowed.
Directors and Auditors
An LLC in Rwanda requires a minimum of 1 director for company operations. They can be from any country, but need to reside in Rwanda during operations. The similar rule applies to hiring an auditor.
A Registration Address is the physical location in Rwanda where a company’s official documents and communications are received and maintained. It’s a legal requirement ensuring a tangible presence for the company within the country. The address must be a physical one; P.O. boxes are not accepted.
The Class E1 Visa, commonly referred to as the business visa in Rwanda, holds validity typically ranging from 30 to 90 days. This visa is granted upon meeting requirements including an invitation letter, valid passport, and application fee payment. The application process generally takes around 5 to 7 business days.
For an LLC (Private Limited Company) in Rwanda, there is no fixed minimum paid-up capital requirement. The amount can be determined based on the company’s needs and objectives. But do note that you may need to show that you have enough capital based on the nature of your business. This is on a case by case basis.
Rwanda operates under a residence-based tax system, taxing residents on their global income and non-residents solely on Rwandan-sourced income. The country has Double Taxation Agreements (DTAs) with Belgium, Jersey, Mauritius, Singapore, South Africa, and Turkey.
Regarding Value Added Tax (VAT), it’s applied at a rate of 18% on the supply of goods and services within Rwanda and on the importation of goods and services. Businesses are required to register for VAT if their annual turnover exceeded RWF 20 million in the previous fiscal year or RWF 5 million in the preceding calendar quarter, or if they anticipate exceeding these thresholds in the upcoming year.
Documents Needed for Company Registration in Rwanda
The documents depend on the nature of business. As a general rule of thumb, you need to prepare these:
- Company name reservation certificate.
- Memorandum and Articles of Association.
- Identification documents for shareholders and directors.
- Proof of registered office address.
- Bank reference letters.
- Application forms for business permits and licenses.
- Tax Identification Number (TIN) certificates for shareholders and directors.
- Duly filled registration forms.
- Passport-sized photos of shareholders and directors.
- Payment of registration fees
What Are the Steps Involved in Company Registration in Rwanda?
Finally, here are the steps you need to follow to register a company in Rwanda:
Step 1: Choose a Company Name and Reserve it.
Step 2: Draft and Notarize Memorandum and Articles of Association.
Step 3: Submit Identification Documents for Shareholders and Directors.
Step 4: Provide Proof of Registered Office Address.
Step 5: Obtain Bank Reference Letters.
Step 6: Complete Application Forms for Business Permits and Licenses.
Step 7: Apply for Tax Identification Number (TIN) Certificates.
Step 8: Fill and Submit Registration Forms.
Step 9: Provide Passport-sized Photos of Shareholders and Directors.
Step 10: Make Payment of Registration Fees
Do You Need a Local Registered Agent for Company Registration in Rwanda?
Yes, a local registered agent is mandatory for company registration in Rwanda. This agent acts as a bridge between your company and local regulatory authorities, ensuring efficient communication and adherence to legal requirements.
How Many Days Does It Take to Complete the Company Registration Process in Rwanda?
Company registration in Rwanda typically takes around 5 to 7 business days to complete. However, the exact duration can vary based on factors such as the completeness of your documentation, potential administrative delays, and the efficiency of the registration
Working with experienced professionals, like 3E Accounting, can help expedite the process and ensure a smooth and timely registration for your company.
Incorporating a Company in Rwanda?
Experience a seamless journey through Rwanda’s company registration with 3E Accounting. Our skilled team guides you from consultation to documentation, ensuring swift compliance and a hassle-free process. Contact us to get started with your business venture today!