Rwanda has a growing economy and a favourable business environment. As a member of the East African Community and the African Continental Free Trade Area (AfCFTA), it provides access to a larger market and opportunities for regional integration and trade. The government has implemented policies and reforms that have made doing business in Rwanda easier, attracting local and foreign investors.
Wondering how to register a company in Rwanda, the types of companies that can be registered, and the benefits? In this video, we answer all these questions and more, providing expert insights on company registration in Rwanda. Hit play and get all the details!
Online Company Registration in Rwanda
Thanks to a seamless online system, registering a company in Rwanda is now more straightforward than ever. Whether you’re a local entrepreneur or a foreign investor, the Rwandan government provides a digital platform that simplifies business registration. Follow these steps:
Step 1: Choose and Reserve a Business Name
Select a unique name for your company that has not been used in Rwanda. You can check and reserve a business name through the Rwanda Development Board (RDB) website.
Step 2: Prepare Your Documents
When registering a company, preparing the required documents is essential based on the specific company you wish to register. Below are some of the key requirements:
- Preferred name of the proposed company
- A Description of the activities of the Business/ Company
- Passport-size photographs of all the directors and shareholders
- Physical and e-mail addresses
- Telephone numbers
- Occupation of all shareholders/directors of the proposed company
- Local physical address of the company
- Share apportionment percentage.
Foreigners looking to register a Branch Company in Rwanda will need:
- Power of attorney to represent the company in Rwanda. (Notarized)
- A duly authenticated copy of the memorandum Articles of Association. (Notarized)
- Certificate of Registration/Incorporation issued by the registration authority in the country of incorporation. (Notarized)
- Notarized resolution from the authorized agency authorizing the opening of a branch.
- Passport copies and address of the shareholders, directors and beneficial owners
- List of directors residing in Rwanda (at least One)
Step 3: Register Your Company with RDB and RRA
Under the Rwanda Development Board, you will submit the required documents listed in Step 2. Once the process is complete, you will receive a Certificate of Incorporation.
After opening a company in Rwanda, you must also register for taxes with the Rwanda Revenue Authority (RRA) to facilitate tax payments and business transactions.
Step 4: Obtain Necessary Permits and Licenses
After completing all the necessary processes for company registration in Rwanda, depending on the nature of your business, you may need to seek extra permits and licenses from the relevant authorities.
Step 5: Open a Bank Account
To perform business activities, you must open a bank account for your company. Currently, there are 16 commercial banks from which to choose.
Types of Companies in Rwanda
Before you register a company in Rwanda or any other country, it is essential to understand the available business structures. Below are the types of companies eligible for registration in Rwanda:
1. Company Limited by Shares
This is a type of company in which the liability of its members is limited to the number of shares they hold. If the company is wound up, the members will only be liable for the unpaid amount of their shares.
2. Company Limited by Guarantee
This is a type of company in which the liability of its members is limited to the amount they have guaranteed to contribute to the company in the event of its winding up. Non-profit organizations commonly use this type of company.
3. Company Limited by Shares and by Guarantee
This type of company combines the features of a company limited by shares and a company limited by guarantee. It has members who hold shares, and their liability is limited to the amount of shares they hold. It also has members who have guaranteed to contribute a certain amount if the company is wound up.
4. Unlimited Company
This is a type of company where the liability of its members is unlimited. If the company is wound up, the members will be liable for all the company’s debts and liabilities.
5. Protected Cell Company
This type of company can segregate its assets and liabilities into separate cells, each treated as a separate legal entity. This is commonly used in the insurance industry, where each cell can underwrite a different type of risk.
Company Registration in Rwanda Fees
The costs are minimal, with additional expenses depending on the licenses required. Always budget for unforeseen costs. Contact us to get the actual quotation.
Benefits of Registering a Company in Rwanda
Business registration in Rwanda is essential for entrepreneurs looking to establish a legally recognized and credible business. The country offers numerous advantages for startups and investors, making it an attractive destination for business growth. Some key benefits include:
- Ease of Doing Business: Rwanda consistently ranks among the top African countries for ease of doing business. The government has streamlined registration processes, embraced digital platforms, and minimized bureaucratic hurdles, making it easier and faster to start a business.
- Access to Growing Markets: Located in the heart of East Africa, Rwanda provides easy access to a market of over 140 million people through regional trade agreements like the East African Community (EAC). This strategic position makes it a hub for business operations in the region.
- Supportive Government Policies: The Rwandan government promotes entrepreneurship by offering tax incentives, such as exemptions for start-ups in specific sectors. Digitalizing services, including company registration and tax filings, further reduces operational challenges.
Post-registration RequirementsAfter successfully registering a company in Rwanda, there are key compliance steps to follow to ensure smooth operations:
- Tax Compliance: Rwanda’s tax system is well-structured, with mandatory Value Added Tax (VAT) registration for eligible businesses. Ensure timely filing of tax returns to avoid penalties.
- Business Licensing: Licenses must be renewed periodically. Continually monitor expiration dates to maintain compliance.
- Employment Obligations: Employers must register employees with the Rwanda Social Security Board (RSSB) and adhere to labour laws to ensure workplace harmony.
After successfully registering a company in Rwanda, there are key compliance steps to follow to ensure smooth operations:
- Tax Compliance: Rwanda’s tax system is well-structured, with mandatory Value Added Tax (VAT) registration for eligible businesses. Ensure timely filing of tax returns to avoid penalties.
- Business Licensing: Licenses must be renewed periodically. Continually monitor expiration dates to maintain compliance.
- Employment Obligations: Employers must register employees with the Rwanda Social Security Board (RSSB) and adhere to labour laws to ensure workplace harmony.
Tips to Make Company Registration in Rwanda an Easy Process
- Prepare all documentation in advance to avoid delays.
- Familiarize yourself with the RDB portal for online applications.
- Consult industry-specific experts for tailored advice.
Frequently Asked Question (FAQs)
Foreigners need a power of attorney, notarized parent company documents, passport copies of shareholders/directors, and a list of directors in Rwanda.
To verify a company’s registration in Rwanda, use the RDB database. Steps:
- Visit the RDB website.
- Select “Enterprise Search.”
- Enter a search term.
- Review the results, including name, number, date, and address.
Rwanda is a good place to do business, with stable politics, vigorous growth, and a pro-business environment. It ranks 2nd in Africa for ease of doing business.
Rwanda has abolished the statutory costs for most types of businesses, making it affordable for entrepreneurs to start a company.
To dissolve a company in Rwanda, obtain a removal certificate from the Registrar General at the Rwanda Development Board (RDB). This applies if the company is solvent and has no pending creditor claims
Yes, foreigners can do business in Rwanda without restrictions and are granted the same rights as local investors
The registration process typically takes 5 to 7 days, depending on the complexity of your business structure and the completeness of your documentation
Rwanda allows wholly foreign-owned companies, though some sectors may have restrictions or require special permits.
Conclusion
Registering a company in Rwanda is straightforward, thanks to the efficient online registration system and supportive business environment. As trusted experts, we help you navigate each step and ensure you choose the ideal legal structure for your business’s success. Do you need assistance with company registration in Rwanda?
Feel free to contact us to get started.