How To Start A Business in Rwanda

How to Start a Business in Rwanda - Step by Step Guide

Starting a business in Rwanda involves several steps, each requiring specific documentation and processes. The following guide provides step-by-step instructions for both locals and foreign investors, along with details on the associated fees and taxes.

Step-by-Step Guide for Rwandan Nationals

1. Choose Your Business Structure: You can choose between different business structures, such as sole proprietorship, partnership, and limited liability company (LLC). Most businesses are registered as LLCs.
2. Register the Business Name: Register your business with the Rwanda Development Board (RDB). The business name is registered through the RDB's online portal.
   Rwanda Development Board (RDB)
   Fees: - Business name registration: RWF 10,000.
3. Obtain a Tax Identification Number (TIN): After registering your business, you must obtain a Tax Identification Number (TIN) from the Rwanda Revenue Authority (RRA).
   Rwanda Revenue Authority (RRA)
   Fees: Free.
4. Register for VAT (if applicable): If your business's annual turnover exceeds RWF 20 million, you are required to register for VAT with the Rwanda Revenue Authority.
   Fees: VAT registration is free, but monthly VAT returns are required once registered.
5. Obtain Necessary Permits: Depending on your business activities, certain sectors may require special permits or licenses. For example, businesses in agriculture, telecommunications, or finance need approval from respective authorities.
   Fees: Varies by sector.
6. Register with the Rwanda Social Security Board (RSSB): If you employ staff, you need to register with the Rwanda Social Security Board to ensure your employees' social security contributions.
   Rwanda Social Security Board (RSSB)
   Fees: The contribution is 6% of monthly wages for employees earning RWF 100,000 or more.
7. Open a Business Bank Account: Once your business is registered, open a business account at a commercial bank.
   Fees: Varies by bank but typically ranges from RWF 5,000 to RWF 10,000.

Step-by-Step Guide for Foreign Investors

1. Choose Your Business Structure: Foreign investors generally prefer to register as a limited liability company (LLC) or joint venture with a Rwandan partner.
2. Obtain Investment Certificate: Foreign investors must apply for an Investment Certificate with the Rwanda Development Board (RDB). This is part of the investment promotion initiative.
   Rwanda Development Board (RDB)
   Fees: The application for the Investment Certificate is free of charge, but the approval process could take a few days.
3. Register the Business: After obtaining the Investment Certificate, register your business with the Rwanda Development Board (RDB).
   Fees: - Company registration fee: RWF 50,000 to RWF 100,000 (depending on the business structure).
4. Obtain a Tax Identification Number (TIN): After registration, foreign businesses must obtain a TIN from the Rwanda Revenue Authority (RRA).
5. Register for VAT (if applicable): Foreign investors with a turnover exceeding RWF 20 million annually must register for VAT.
   Fees: VAT registration is free, but you are required to submit monthly returns.
6. Obtain Necessary Permits: Depending on your business type, you may need additional permits, such as environmental permits for industries.
   Fees: Varies by industry.
7. Register with the Rwanda Social Security Board (RSSB): Foreign investors employing staff must ensure social security contributions for their employees.
   Fees: 6% of the employee's monthly wage.
8. Open a Business Bank Account: Foreign investors must open a business account at a commercial bank to facilitate transactions.
   Fees: Typically ranges between RWF 5,000 and RWF 10,000.

Estimated Duration

• For Locals: 1-2 weeks
• For Foreign Investors: 2-4 weeks (includes investment permit process)

Useful Resources

• Rwanda Development Board (RDB)
• Rwanda Revenue Authority (RRA)
• Rwanda Social Security Board (RSSB)