How to Register a Sole Proprietorship (Individual Enterprise / Entreprise Individuelle) in Rwanda

If you’re launching your own solo venture in Rwanda — offering services, consulting, or small trade — registering as an individual enterprise (Entreprise Individuelle) gives you a direct, low-overhead path into the formal economy. You keep full control, you avoid the heavier legal formalities of a company, and you get legal recognition to invoice, hire, or grow.

Rwanda is known for its business-friendly reforms: registration is fully digital, fast, and free via the Office of the Registrar General (ORG) under the Rwanda Development Board (RDB). Still, it’s essential to understand thresholds, tax obligations, and reporting requirements to stay compliant as you scale.

Disclaimer: This article is for informational purposes only and is not a substitute for legal or tax advice. Always verify with official government sources or consult a professional before making decisions.

What is a sole proprietorship in Rwanda?

In Rwanda, the legal equivalent of a sole proprietorship is typically called an Individual Enterprise (or in French Entreprise Individuelle). The RDB / ORG classifies it as an unincorporated business operated by one person, who is taxed under personal income tax rules.

You might see it referred to as a sole trader, individual business, or proprietorship — but the idea is the same: one person owns and runs the business without forming a separate company entity.

How a sole proprietorship works in Rwanda

Here’s a quick snapshot of how an individual enterprise works in Rwanda:

Autónomo/a vs. a Limited Company (Sociedad Limitada, “SL”) in Spain

An autónomo/a is fastest and cheapest to start; an SL offers limited liability and a corporate image but requires notary, registry and corporate compliance. You can form companies online via Spain’s CIRCE one-stop system.

Company costs/timing vary; see CIRCE and IPYME guides for official process details.

Individual enterprise vs a limited company in Rwanda

Here’s how this sole proprietor model compares to registering a limited company or partnership in Rwanda:

Step-by-step guide: How to register a sole proprietorship in Rwanda

Here’s how to get set up:

Step 1: Check your eligibility

You must be a legal adult (18+). Foreigners can register individual enterprises, provided they comply with immigration and local address rules. Rwanda does not restrict non-residents from owning business entities.

Step 2: Choose and reserve your business name

Pick your business name or trade name. Use the ORG / RDB online portal to check availability. The system allows you to reserve the name as part of the registration workflow.

Step 3: Gather required documents

Typical documents include:

• Valid national ID or passport

• Proof of residence / physical address for business

• Business activity/nature of business information

• (If foreign) any immigration or permit documents as needed

Because the registration is digital, you upload scanned documents via the portal.

Step 4: Register with ORG via the RDB Portal

Use the Business Procedures portal to register your individual enterprise. The integrated system links registration with tax registration.

Once you complete registration, you receive your Business Registration Certificate and a Taxpayer Identification Number (TIN).

This service is free and typically immediate (within hours).

Step 5: Pay fees (if any) & activate tax regime

There is no fee for the digital registration itself. If your business exceeds certain turnover thresholds, you must register for VAT within 7 days of exceeding them.

Step 6: Post-Registration Obligations

After registration, you must:

• Use your TIN (and business registration certificate) for invoicing and contracts

• File annual personal income tax returns, including business profit

• If your turnover crosses the VAT threshold, file monthly VAT returns

• Keep accurate accounting records and books

• If you hire staff, register them with RSSB (social security), and manage PAYE withholding

• Comply with local / district licenses or obtain permits specific to your industry

Financial and tax obligations for sole proprietors in Rwanda

Income tax (personal / business profits)

Your business profits are taxed under personal income tax (PIT). When you register via ORG, RRA automatically registers you for the income tax regime. You must file your PIT return according to RRA’s schedule (annually).

Value-Added Tax (VAT)

If your business’s annual turnover exceeds RWF 20,000,000 or quarterly turnover exceeds RWF 5,000,000, you must register for VAT within 7 days of exceeding that threshold. Once registered, file and pay VAT monthly.

Record-keeping and books

• All persons engaged in business must keep books and records.

• If turnover is between RWF 2,000,000 and RWF 12,000,000, simplified record-keeping (sales records) may suffice.

• If turnover exceeds RWF 20,000,000, full accounting of assets, liabilities, purchases, sales, income, and expenses is required.

• Keep these records for 10 years starting from January 1 of the year following the fiscal period.

Other taxes and levies

• Withholding taxes apply to certain payments (e.g., payments to contractors).

• Local Government Taxes / Trading Licenses may apply depending on the district or city. RRA handles local taxes via integrated systems.

• If engaging in certain regulated sectors, additional permits or regulatory taxes may apply.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required?
None. There is no mandated capital requirement to register an individual enterprise in Rwanda.

Do I need to register for VAT?
Only once your turnover surpasses RWF 20,000,000 annually or RWF 5,000,000 quarterly. Below that, VAT registration is optional.

How much does registration cost?
The digital registration via ORG is free of charge.

Can I hire employees as an individual enterprise?
Yes. If you hire staff, you must register them with RSSB (Rwanda Social Security Board), withhold income tax (PAYE), and comply with employment laws.

How long does registration take?
In many cases, registration is processed within a few hours (same day). RDB / ORG aims for rapid turnaround.

Can foreigners register as individual enterprises?
Yes. Rwanda allows foreign ownership, though you must meet local address or permit requirements.

Do I need a separate business bank account?
While not always legally required, having a separate bank account is strongly recommended for clarity, professionalism, and clean accounting.

What happens if I stop operations?
You should deregister your business via ORG, settle any outstanding taxes, file final returns, and notify RRA / local authorities.

Are there incentives or tax breaks for new individual enterprises?
Rwanda offers general tax incentives and an investor-friendly environment across sectors; specific incentives depend on sector or location (check with RDB).

Can I use Deel as an individual enterprise in Rwanda to get paid globally?
Yes. Deel supports freelancers and sole proprietors (individual enterprises) in Rwanda to receive payments from international clients, manage currency conversion, and maintain detailed records that align with Rwanda’s tax and invoicing norms.

Does Deel generate compliant invoices?
Yes. Deel’s invoicing includes your registered name and TIN, and aligns with Rwandan invoicing standards, making it easier for tax compliance.

Can Deel help with tax records?
While Deel is not a substitute for a local accountant, it provides downloadable transaction and tax reports you can use when preparing your Rwanda tax filings.