Company Registration in Rwanda

Rwanda is an East African nation that is indexed as one of the least corrupt nations in Africa and also one of the most secure nations worldwide. With a 60% population of youth and a high percentage of young people, it remains a desirable destination for foreign investment.

Rwanda is among the top economies that are growing at a rapid rate and boasts a thriving economic environment, a growing private sector,

Rwanda was named the second-best place in which to conduct commerce within Africa in Atlas magazine in 2020. And IT has been one of the most influential sectors joining hands with energy and tourism to invest in the economy.

The process to register a company in Rwanda is very simple, since the government is proud of its willingness to accept commerce. A foreign business does not need any additional steps other than getting an official trade license for engaging in international commerce.

Procedure for Rwanda Company Registration

To register a local business or foreign subsidiary, Rwanda Development Board (RDB) offers a fast registration process that permits a person to incorporate their business within a matter of six hours.

Here are the steps for company registration in Rwanda:
Step 1: Register your business on the RDB business registration system.
Step 2: Select the business category in which you want to be registered
Step 3: Fill out the registration of the business following the option of the entity that you decide to register the business.
Step 4: Get Printed copies of certificates, like Memorandum, AoA, and Value-Added Tax certificate.
Step 5: Register, declare, and pay any taxes required

Business registration is completed in approximately 24 hours and must be completed at the Rwanda Development Board before you receive your license to trade.

It is possible to apply for company enrolment at the Office of the Registrar General. The application can even be done through online mediums.

Essential Documents for Company Registration in Rwanda

The documents required for company registration in Rwanda include:
Power of Attorney to illustrate the firm to Rwanda.
A copy that has been authenticated and certified as the Memorandum Articles of Association.
Certificate of Registration/Incorporation granted by the registration authority in the country of incorporation.
Notarized resolution from the authorized agency authorizing the opening of the branch.
Passport copies of the shareholders/directors.
Directors who reside in Rwanda

Types of Business Entities for Company Registration in Rwanda

Four kinds of business entities can be registered when you think of company registration in Rwanda:

Limited Liability Companies (LLC)
LLCs have become a popular kind of business entity for company registration in Rwanda by entrepreneurs who want to establish themselves as SMEs within the country. LLCs need at the very least one shareholder and a director and have a minimum share capital of US$850.

Public Limited Company (PLC)
PLCs are allowed to be owned by 100% foreign investors, and the operation scope for the entity will be determined by the parent company.

Branch
Branch offices are separate legal entities. They may have their managing team as well as an account with a bank for corporate use.

Representative Offices
Representative offices may only be engaged in market research and promote activities that are owned by the company’s parent and are not permitted to engage in profit-making activities.

Eligibility Requirements for Rwanda Company Registration

There are various eligibility requirements that must be met for Rwanda company registration, such as:
You should be at least 18 years old and have a sound mind.
Must be able to provide legal documents for your company, like your Memorandum of Association and Articles of Association.
It is crucial to maintain the capital to start your company.
Necessary document details of the directors and shareholders and the address of the company.
It is important to explain the business’s mission.
It is also necessary to present proof of a valid National ID or passport for all shareholders and directors.

Finally, to be eligible for registration of a business in Rwanda the applicant must have to be either a Rwandan resident or a foreigner holding authorization to reside in Rwanda.

Different taxes related to Rwanda Company Registration

When you think of doing a Rwanda company registration, the following taxes will typically apply:

Corporate Income Tax (CIT):- Resident corporations or permanent facilities of foreign corporations will be taxed at a minimum rate of 30%.
Value Added Tax(VAT):- It is a tax that is imposed on the supply of services and goods in Rwanda as well as on the importation of services and goods at an amount of 18%.
Withholding Tax (WHT):- The amount of Withholding Tax (WHT) of 15% is charged on interest, dividends, and royalties, as well as technical and management fees.
Capital Gains Tax (CGT):- The capital gains tax is imposed at a rate of 5% on the gain.
Excise Tax:- It is charged at varying rates, and should be disclosed and paid to RRA.

Cost to Register a Company in Rwanda

The cost to register a company in Rwanda will vary depending on the type of firm, the number of stakeholders, and the services used to assist in the registration process.

The cost of registration for a company in Rwanda is not expensive, as it is FREE to apply online for business registration as well as at the Rwanda Development Board (RDB) and Business Development Fund (BDF).

The fee for application to register the business name within Rwanda can be as low as 10,000 Rwf. Once you’ve created the brand name for your business it’s good for two years at which point it has to be renewed.

Reason to Register a Company in Rwanda

Rwanda’s growth is because of exports and foreign investment which are primarily concentrated in the manufacturing sector. Other sectors are expanding, but not at as fast rates as manufacturing.
With a consistent and high growth rate (averaging over 7% over the last 10 years), it is one of the more favorable economic climates across the African continent.
Important progress in governance, and relative stability in the political system.
The market with more than 10 million with an ever-growing middle class.
Opportunities for investment in infrastructure that are not being explored and energy, agriculture tourism, Information and Communication Technology Construction and Real Estate Finance services, and mining.
Rwanda has however put restrictions on the sectors where a limited company can operate, i.e. Banking Finance, Insurance, and leasing all require the creation of a public company.

Benefits of Rwanda Company Registration

There are several benefits to company registration in Rwanda, including:

The business process in Rwanda is much easier than in other countries because of the efficiency of its public enterprises as well as city officials.
Rwanda is classified as the 34th most corrupt nation in the world by the 2017 Corruption Perceptions Index by Transparency International.
The 38th most convenient country to conduct business in as per the International Finance Corporation.
Rwanda has an ambitious plan to accelerate development with its Rwanda Vision 2020 plan which includes the transformation of agriculture and educating the people in the fields of science and technology as well as upgrading infrastructure.
The literacy rate for computers in Rwanda is among the highest in Africa which means better-performing and productive employees.
Rwanda is a more affordable country than most African and other developing nations as the cost of renting a three-bedroom home is US$800 monthly and the monthly average salary for skilled laborers is US$500.
The government has introduced an amendment to the law that permits an expanded definition of what is utilized as collateral in loans, which makes it easier to obtain credit.

How we can help you

If you are considering forming a business or you need expert help with company registration in Rwanda, MagickTranslations™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.

Please use our Company Wizard if you would like to set up your registered company in Rwanda or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at connect@magickgroup.com