How to Register a Sole Proprietorship in Djibouti
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Located in the Horn of Africa, Djibouti is a small country bordering Ethiopia and Eritrea. Djibouti has about 880 thousand inhabitants, and the capital Djibouti houses about two-thirds of the population. The largest amount of imports and exports of Djibouti are done with Somalia and Ethiopia.
In terms of GDP, it grew by 6% in the previous year, while growth for 2021 is forecast at 6.2%. Djibouti is a promising country with many business opportunities.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
How to register a sole proprietorship in Djibouti
Djibouti has cooperation with the World Bank on a project that aims to support women entrepreneurs in the country. Sole proprietorship is currently under development in Djibouti, which is a great opportunity that should be taken advantage of.
Sole proprietorship registration takes place in the Djiboutian Office of Intellectual and Commercial Property (ODPIC)
The site is available exclusively in French, so make sure you have a French speaker with you if you don't speak the language.
The sole proprietorship registration procedure is as follows:
- Business name reservation
- Documents collection
- Collection of the Criminal records of the business manager
- Registration and filling out the business documents, which are then announced in the newspaper La Nation
The registration process needs to be done in person.
When you register the sole proprietorship, you need to register as a taxpayer as well and obtain additional licenses if applicable.
Taxation system in Djibouti
The Value Added Tax (VAT) in Djibouti is 10%.
The taxation system applies to any business exceeding the income of DJF 10 million. The booking accounts must be kept in accordance with the General Accounting Plan of Djibouti (established by Regulation 2012-010 / PR / MEF of January 10, 2012). The declaration for a tax year must be filed no later than March 31 of the following year.