Starting a Business in Rwanda: Step by Step Process
Starting a business in Rwanda is straightforward, as the government has made efforts to create a business-friendly environment. Below is a step-by-step guide to help you navigate the process:
1. Choose a Business Structure
Before starting the registration process, decide on the business structure that best fits your needs:
Sole Proprietorship: Best for single-owner businesses.
Partnership: For businesses with two or more partners sharing responsibilities.
Private Limited Company (Ltd): Suitable for larger businesses with shareholders.
Public Limited Company (PLC): For businesses looking to trade shares publicly.
Non-Governmental Organization (NGO): For charitable or non-profit organizations.
2. Register Your Business
Business registration in Rwanda is carried out by the Rwanda Development Board (RDB). You can register your business either online or by visiting the RDB offices in Kigali. Below are the steps for registration:
Online Registration (Highly Recommended):
Visit the RDB e-portal: RDB Business Registration Portal.
Create an account or log in if you already have one.
Fill in the required business details, including:
Company name
Type of business structure
Objectives and business activity
Directors and shareholders' details
Registered address
Upload scanned copies of the following:
Identification documents (ID or passport) of the shareholders and directors.
Passport-size photos.
Business objectives and any other relevant documents.
Pay the registration fee: In Rwanda, business registration is free of charge for most types of businesses.
After successful submission, you will receive a Certificate of Incorporation and a Unique Company Identification Number (TIN) within 6 hours (usually on the same day).
3. Obtain a Tax Identification Number (TIN)
Along with the Certificate of Incorporation, you will receive a Tax Identification Number (TIN), which is required to operate your business. This is automatically issued during the registration process.
4. Open a Corporate Bank Account
After receiving your Certificate of Incorporation and TIN, open a corporate bank account in the business name. Most Rwandan banks require:
Certificate of Incorporation
Tax Identification Number (TIN)
Directors’ IDs and a company resolution to open the account
5. Obtain Necessary Licenses and Permits
Depending on the nature of your business, you may need specific permits and licenses. Common permits include:
Trading License: Required to conduct business legally, obtainable from the local district offices.
Sector-Specific Licenses: If your business operates in regulated sectors (e.g., telecommunications, healthcare, or food service), additional licenses are required from relevant authorities.
Rwanda Standards Board (RSB): For businesses dealing with products or services that require quality and standards certification, you may need approval from the RSB.
6. Register for VAT (If Applicable)
If your business has an annual turnover exceeding RWF 20 million, you are required to register for Value-Added Tax (VAT) with the Rwanda Revenue Authority (RRA).
VAT registration is done online via the RRA e-filing portal.
7. Comply with Employment Laws
If you plan to hire employees, ensure that you comply with Rwanda’s labor laws:
Draft employment contracts as per Rwandan labor laws.
Register employees with the Rwanda Social Security Board (RSSB) for pension and health insurance contributions.
Deduct Pay As You Earn (PAYE) income tax for employees and submit it to the Rwanda Revenue Authority (RRA).
8. Other Compliance Requirements
Environmental Impact Assessment (EIA): Some businesses, especially those in construction or manufacturing, require an EIA from the Rwanda Environment Management Authority (REMA).
Fire Safety Certificate: If you have physical business premises, obtain a fire safety certificate from the local fire department.
9. File Annual Returns
Once the business is registered, you must file annual returns with the Rwanda Revenue Authority (RRA). This includes submitting tax returns and ensuring that all taxes (such as corporate tax, VAT, PAYE) are filed on time.
Annual corporate tax is 30% on profits.
10. Foreign Investors Requirements
Foreign investors must register with the Rwanda Development Board (RDB) and may require an Investment Certificate if applying for incentives or benefits.
The minimum capital requirement for foreign-owned companies varies depending on the sector.
A work permit may be needed for foreign nationals intending to work in Rwanda. This can be obtained through the Directorate General of Immigration and Emigration.
11. Business Promotion and Incentives
The Rwandan government offers various incentives to local and foreign investors, including:
Tax holidays for certain industries like manufacturing, ICT, and agro-processing.
Investment incentives like duty-free imports on capital goods and reduced corporate taxes for businesses exporting products.
Key Costs
Business registration: Free of charge
Trading license: Varies by business type and district
VAT registration: Free, but applicable only for businesses with a turnover above RWF 20 million.
1. Choose a Business Structure
Before starting the registration process, decide on the business structure that best fits your needs:
Sole Proprietorship: Best for single-owner businesses.
Partnership: For businesses with two or more partners sharing responsibilities.
Private Limited Company (Ltd): Suitable for larger businesses with shareholders.
Public Limited Company (PLC): For businesses looking to trade shares publicly.
Non-Governmental Organization (NGO): For charitable or non-profit organizations.
2. Register Your Business
Business registration in Rwanda is carried out by the Rwanda Development Board (RDB). You can register your business either online or by visiting the RDB offices in Kigali. Below are the steps for registration:
Online Registration (Highly Recommended):
Visit the RDB e-portal: RDB Business Registration Portal.
Create an account or log in if you already have one.
Fill in the required business details, including:
Company name
Type of business structure
Objectives and business activity
Directors and shareholders' details
Registered address
Upload scanned copies of the following:
Identification documents (ID or passport) of the shareholders and directors.
Passport-size photos.
Business objectives and any other relevant documents.
Pay the registration fee: In Rwanda, business registration is free of charge for most types of businesses.
After successful submission, you will receive a Certificate of Incorporation and a Unique Company Identification Number (TIN) within 6 hours (usually on the same day).
3. Obtain a Tax Identification Number (TIN)
Along with the Certificate of Incorporation, you will receive a Tax Identification Number (TIN), which is required to operate your business. This is automatically issued during the registration process.
4. Open a Corporate Bank Account
After receiving your Certificate of Incorporation and TIN, open a corporate bank account in the business name. Most Rwandan banks require:
Certificate of Incorporation
Tax Identification Number (TIN)
Directors’ IDs and a company resolution to open the account
5. Obtain Necessary Licenses and Permits
Depending on the nature of your business, you may need specific permits and licenses. Common permits include:
Trading License: Required to conduct business legally, obtainable from the local district offices.
Sector-Specific Licenses: If your business operates in regulated sectors (e.g., telecommunications, healthcare, or food service), additional licenses are required from relevant authorities.
Rwanda Standards Board (RSB): For businesses dealing with products or services that require quality and standards certification, you may need approval from the RSB.
6. Register for VAT (If Applicable)
If your business has an annual turnover exceeding RWF 20 million, you are required to register for Value-Added Tax (VAT) with the Rwanda Revenue Authority (RRA).
VAT registration is done online via the RRA e-filing portal.
7. Comply with Employment Laws
If you plan to hire employees, ensure that you comply with Rwanda’s labor laws:
Draft employment contracts as per Rwandan labor laws.
Register employees with the Rwanda Social Security Board (RSSB) for pension and health insurance contributions.
Deduct Pay As You Earn (PAYE) income tax for employees and submit it to the Rwanda Revenue Authority (RRA).
8. Other Compliance Requirements
Environmental Impact Assessment (EIA): Some businesses, especially those in construction or manufacturing, require an EIA from the Rwanda Environment Management Authority (REMA).
Fire Safety Certificate: If you have physical business premises, obtain a fire safety certificate from the local fire department.
9. File Annual Returns
Once the business is registered, you must file annual returns with the Rwanda Revenue Authority (RRA). This includes submitting tax returns and ensuring that all taxes (such as corporate tax, VAT, PAYE) are filed on time.
Annual corporate tax is 30% on profits.
10. Foreign Investors Requirements
Foreign investors must register with the Rwanda Development Board (RDB) and may require an Investment Certificate if applying for incentives or benefits.
The minimum capital requirement for foreign-owned companies varies depending on the sector.
A work permit may be needed for foreign nationals intending to work in Rwanda. This can be obtained through the Directorate General of Immigration and Emigration.
11. Business Promotion and Incentives
The Rwandan government offers various incentives to local and foreign investors, including:
Tax holidays for certain industries like manufacturing, ICT, and agro-processing.
Investment incentives like duty-free imports on capital goods and reduced corporate taxes for businesses exporting products.
Key Costs
Business registration: Free of charge
Trading license: Varies by business type and district
VAT registration: Free, but applicable only for businesses with a turnover above RWF 20 million.