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2.1. Main Formation Requirements

The key steps involved in the registration of a business entity are:

  • Depositing the initial capital at the bank and obtaining of the proof of deposit
  • Checking availability of proposed company name with Office of Commercial and Industrial Property (‘ODPIC’), obtaining negative certificate and registering the company name
  • Submitting articles of association and other required documents with ODPIC
  • Registering the Company in the Corporate and Trade Register with ODPIC, obtaining receipt followed by announcement of incorporation of the company in the press
  • Registering with tax authorities and National Social Security Fund, and obtaining of business license from the Taxation Office

For the setting-up of a branch of a foreign company, the following documents are needed:

  • ID or passport of the associate or manager;
  • Permission to engage in the activity (for restricted activities or activities requiring prior permission);
  • Proxy mandate;
  • Rental agreement for premises (or letter of commitment to such effect);
  • Certified copy of the articles of association of the foreign company with translation into French or Arabic;
  • Copy of the Trade/Commercial Register registration of the foreign company; and
  • Copy of the decision of the foreign company to establish a branch in Djibouti.

There is a one stop shop (Guichet Unique”) for the formation of companies and normally a standardized form is used:

Contribution to the capital of companies were subject to a capital duty of 5%. The duty was repealed in 2016 and replaced by progressive registration duties ranging from DJF 50,000 to DJF 500,000.