Starting a Business in Djibouti : Guide
Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Djibouti. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Deposit the initial capital at the bank and obtain a receipt | 2 days | no charge |
| 2 | Verify the uniqueness of the company name | 5 days | no charge |
| 3 | Notarize company statutes | 3 days | DJF 100000 |
| 4 | Obtain criminal record of managers | 2 days | DJF 500F stamp duties per page (depending on number of records) |
| 5 | Register statutes with the Direction des Impôts | 2-5 days | 5% of capital + DJF 500 per page stamp duties (x16 or 17 pages). |
| 6 | Publish notice in La Nation | 7 days | DJF 20,000 to 40,000 depending on the length |
| 7 | File documents with the Commercial Registry at the Greffe du Tribunal | 8 days | DJF 32,800 registration fees (l’immatriculation) |
| 8 | Register for taxes and obtain professional license (patente) | 2 days | DJF 100,000 to 300,000. |
| 9 | Create a company seal, letterhead and books | 3 days | DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books) |
| 10 | Obtain signature of the President of the Court on the company books | 2 days | no charge |
| * 11 | Register employees with Organisation de Protection Sociale (OPS) | 1-2 days (simultaneous with previous procedure) | no charge |
