Branch Registration in Rwanda | Foreign Company

Branch registration in Rwanda – Rwanda is a landlocked country in East Africa that has experienced significant economic growth in recent years. As a result, many foreign companies are looking to expand their operations in Rwanda. One way to do this is by registering a branch of a foreign company in Rwanda.

A branch of a foreign company is an extension of the parent company, with the same legal entity and management structure. The branch operates under the same name and business activities as the parent company but in a different location. The branch is subject to the laws and regulations of the country in which it operates, but the ultimate responsibility lies with the parent company. The parent company retains full control and ownership of the branch, and the assets and liabilities of the branch are part of the parent company’s balance sheet.

Branch registration in Rwanda can be a complex process, but with proper guidance, it can be done successfully. This article outlines the legal framework for branch registration in Rwanda, the types of branches that can be registered, steps for registering a branch, post-registration requirements, obligations and frequently asked questions about registering a branch in Rwanda.

Understanding the Legal Framework for Branch Registration in Rwanda | Branch registration in Rwanda requirements

Before registering a branch in Rwanda, it is important to understand the legal framework for branch registration. The legal requirements that must be met to register a branch in Rwanda include:

• The foreign company must have the legal capacity to operate in its home country.
• The foreign company must appoint a legal representative in Rwanda.
• The foreign company must obtain an Investment Certificate from the Rwanda Development Board RDB.
• The foreign company must obtain a Business License from the Rwanda Utilities Regulatory Authority (RURA).
• The foreign company must register with the Rwanda Revenue Authority (RRA) and obtain a Tax Identification Number (TIN).
• The foreign company must open a bank account in Rwanda.

The documents that are required to register a branch in Rwanda include:

• A notarized copy of the foreign company’s Certificate of Incorporation.
• A notarized copy of the foreign company’s Articles of Association.
• A notarized copy of the foreign company’s Memorandum of Association.
• A notarized copy of the foreign company’s Board Resolution authorizing the establishment of a branch in Rwanda and appointing a legal representative.
• A notarized copy of the legal representative’s passport or ID card.

Identifying the Types of Branches That Can Be Registered in Rwanda

There are two types of branches that can be registered in Rwanda: a branch office and a representative office.

• A branch office is an extension of the foreign company and is authorized to conduct commercial activities in Rwanda.
• A representative office is a non-commercial office that is established to promote the interests of the foreign company in Rwanda.

Online branch registration in Rwanda | How do I register a branch in Rwanda?

The steps for branch Registration in Rwanda include:

1. Preparing Required Documents: The first step in registering a branch in Rwanda is to prepare the required documents. The documents must be notarized and translated into English or Kinyarwanda.
2. Obtaining an Investment Certificate: The second step is to obtain an Investment Certificate from the Rwanda Development Board (RDB). The Investment Certificate confirms that the foreign company is authorized to operate in Rwanda.
3. Acquiring a Business License: The third step is to obtain a Business License from the Rwanda Utilities Regulatory Authority (RURA). The Business License authorizes the foreign company to conduct commercial activities in Rwanda.
4. Registering with the Rwanda Revenue Authority: The fourth step is to register with the Rwanda Revenue Authority (RRA) and obtain a Tax Identification Number (TIN). The TIN is required for tax purposes.
5. Opening a Bank Account: The final step is to open a bank account in Rwanda. The bank account must be opened in the name of the foreign company and must be used for all financial transactions related to the branch.

N/B: After registering a branch in Rwanda, there are post-registration requirements and obligations that must be met. These include:

• Filing annual tax returns with the Rwanda Revenue Authority (RRA).
• Keeping proper accounting records.
• Filing annual financial statements with the RDB.
• Obtaining work permits for foreign employees

Branch registration in Rwanda fees

The fees for branch registration in Rwanda can vary depending on several factors, including the type of business, its size, and other specific requirements. Generally, the registration process involves various fees such as government charges, legal fees, and possibly additional costs depending on the services obtained through intermediaries or legal advisors. Contact us for accurate fees!

FAQs on Branch Registration in Rwanda 

1. How long does the branch registration process take in Rwanda? Branch Registration process in Rwanda normally takes between 2 to 5working days. This depends on the intricacy of the registration and the applicant’s timeliness in submitting all necessary documents and information. Contact us for more!
2. Do I need a local partner to register a branch in Rwanda? You are required to have at least one local representative in order to Register a Branch in Rwanda.
3. Can a foreign company register a branch in Rwanda? In Rwanda, there are three types of businesses that can be registered at the Rwanda Development Board. These are individual enterprises, domestic companies and foreign companies.
4. What taxes are applicable to branches registered in Rwanda? Branches registered in Rwanda are subject to several taxes, including: Corporate income tax, Value-added tax (VAT), Withholding tax, Payroll taxes, and Property tax.

N/B:  In Rwanda, tax laws and regulations are subject to change, and it’s always advisable to consult with relevant authorities for guidance.

 Conclusion 

Branch registration in Rwanda is a viable option for companies looking to establish a presence in the country and tap into its growing economy. By understanding the legal requirements, benefits, challenges, and practical considerations associated with branch registration, companies can navigate the process effectively and unlock new opportunities for growth and expansion. With proper planning, execution, and ongoing management, branch registration can serve as a springboard for success in Rwanda’s vibrant business landscape. Contact us today to register a branch in Rwanda today!