Published
Sep 4, 2023
Updates:
Sep 16, 2024
Djibouti
Price:
Delivery:
Legal forms:
Payment methods:
2 weeks
LLC, LLP, PLC
Document checklist:
1.Passport
2.Proof of Residence
Requirements:
Local legal address (Handled by B2B Hub)
Djibouti
$
1500
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Delivery
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Certificate of incorporation
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Articles of association
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Meeting minutes
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Company stamp
Certificate of incorporation
Company stamp (By stempil.com)
Registration documents and guidance
FAQ for company formation in Djibouti
Frequently Asked Questions (FAQ) for Company Formation in Djibouti:
1. What is the process of company formation in Djibouti?
The process of company formation in Djibouti involves obtaining a company name approval, drafting and notarizing the company’s articles of association, depositing the share capital in a bank account, obtaining a tax identification number, registering for social security, and registering with the Djibouti Chamber of Commerce.
2. What are the types of companies that can be formed in Djibouti?
The types of companies that can be formed in Djibouti are limited liability companies, partnerships, sole proprietorships, and joint-stock companies.
3. What is the minimum share capital required for forming a company in Djibouti?
The minimum share capital required for forming a limited liability company in Djibouti is DJF 1 million.
4. What are the taxes applicable for companies in Djibouti?
Companies in Djibouti are subject to corporate income tax, value-added tax, and withholding taxes on dividends, interest, and royalties.
5. Do foreign investors need to have a local partner to form a company in Djibouti?
Foreign investors do not necessarily need to have a local partner to form a company in Djibouti. However, certain sectors, such as telecommunications and banking, may require local participation.
6. What are the requirements for obtaining a business license in Djibouti?
The requirements for obtaining a business license in Djibouti include submitting the company’s articles of association, tax identification number, and proof of deposit of the share capital.
7. How long does it take to complete the company formation process in Djibouti?
The company formation process in Djibouti can take up to 30 days, depending on the type of company being formed and the completeness of the documents submitted.
8. Are there any restrictions on foreign ownership of companies in Djibouti?
There are no restrictions on foreign ownership of companies in Djibouti.
9. Is it mandatory to have a physical office in Djibouti to form a company?
Yes, it is mandatory to have a physical office in Djibouti to form a company. The physical office should be located in Djibouti City.
10. What are the compliance requirements for companies in Djibouti?
Companies in Djibouti are required to file annual tax returns, hold annual general meetings, and maintain proper accounting records.
"Djibouti is a small country located in the Horn of Africa with a population of just over 940,000 people. The economy of Djibouti is largely based on services, which account for around 60% of the country’s GDP. The services sector is mainly composed of port services, telecommunications, banking, and tourism. The country also has a small manufacturing sector, which accounts for around 10% of GDP.
The economy of Djibouti has been growing steadily in recent years, with GDP growth averaging around 5.5% between 2015 and 2019. This growth has been driven by increased investment in infrastructure, such as the construction of a new port and the expansion of the country’s telecommunications network. In addition, the government has implemented a number of reforms to improve the business environment, including the introduction of a new investment code and the establishment of a one-stop shop for investors.
The unemployment rate in Djibouti is estimated to be around 15%, with youth unemployment estimated to be even higher. Inflation has been relatively low in recent years, averaging around 2.5% in 2019. The country’s external debt is estimated to be around $1.3 billion, or around 40% of GDP.
Overall, the economy of Djibouti is showing signs of improvement, with increased investment in infrastructure and reforms to improve the business environment. However, the country still faces challenges, such as high unemployment and a large external debt burden."
In Djibouti, both individuals and companies are subject to taxation.
For individuals, Djibouti operates a progressive tax system with tax rates ranging from 0% to 30% on the taxable income earned during a fiscal year, which runs from January 1st to December 31st. The tax system is residency-based, meaning that tax residents are taxed on their worldwide income, while non-residents are only taxed on their Djibouti-sourced income. There are also various deductions and exemptions available to reduce the taxable income, such as deductions for medical expenses, contributions to social security and pension funds, and donations to charitable organizations.
For companies, the corporate tax rate is a flat rate of 25% on their taxable income. There are also various tax incentives available for companies, such as a reduced tax rate for companies that invest in certain priority sectors and for those that create employment opportunities for Djiboutian nationals.
Tax returns for both individuals and companies are generally due on or before March 31st following the end of the fiscal year. Companies are required to pay their taxes in installments throughout the year based on their projected income. Moreover, there are additional deadlines for specific taxes such as the Value Added Tax (VAT) returns, which are due on the 15th of the month following the end of the reporting period.
In Djibouti, the tax authority responsible for administering and collecting taxes is the Djiboutian Revenue Authority. Payment of taxes can be made at designated banks or through electronic payment systems.
It is important to note that Djibouti has a relatively simple tax system, with various incentives and exemptions available. Therefore, it is advisable for individuals and companies to seek advice from professional tax advisors to ensure that they comply with all tax obligations and take advantage of all available benefits.
Application without registration
The first director
The second director
The third director
The first shareholder
The second shareholder
The third shareholder
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