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Doing Business in Djibouti

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Djibouti. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2015.

 

No.		Procedure	Time to Complete	Associated Costs
	1	Deposit the initial capital at the bank and obtain a receipt Agency: Bank The bank must check the origin of the funds and the purpose of the initial capital. The parties must submit a document stating their intent to start a new business. If during the company’s life the capital should change, the company’s registrar must be notified.	2 days	no charge
	2	Draft the company statutes with a lawyer Agency: Notary There is no legal obligation to draft the company statutes with a lawyer and since February 2014, statute templates are available online at the ODPIC website (www.odpic.info). However, most entrepreneurs still draft the company statutes with a lawyer. Lawyers charge approximately FCFA 10,000 to draft the statutes.	3 days	DJF 10,000
	3	Register statutes with the Direction des Impôts Agency: Service des Impots All new companies must register statutes with the Direction des Impôts.	3 days on average	5% of capital + DJF 500 per page stamp duties (x16 or 17 pages).
	4	Reserve the company name, register with the chamber of Commerce and publish the notice of commencement of activity Agency: ODPIC In order to obtain the name certificate (certificat negatif) and register with the chamber of commerce, both at the at the ODPIC (Office Djiboutien de la Propriete Intelectuelle et Commerciale), the following documents are required: - forms CN1 and RC1 - 2 copies of the representative’s power of attorney - 2 certified copies of the statutes - 2 copies of the bank deposit receipt - 2 sworn statement copies or 2 copies of the criminal record. The ODPIC is also in charge of the publication of the notice of commencement of activity in the newspaper La Nation.	1 day	DJF 132,500 registration fees (l’immatriculation) and DJF 5000 name reservation
	5	Register for taxes and obtain professional license (patente) Agency: Tax administration Entrepreneurs must go to the Service des Patentes to obtain a license, using the registration number obtained at the registrar. This registration also serves as tax registration.	2 days	DJF 100,000 to 300,000.
	6	Create a company seal, letterhead and books Agency: Seal-making shop Creating a company seal, letterhead and books can be done at the Seal-maker for DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books).	3 days	DJF 2,000 - 3,000 (for seal and letterhead) + DJF 5,000 - 7,000 (books)
*	7	Register employees with the Caisse Nationale de la Sécurité Sociale Agency: Caisse Nationale de la Sécurité Sociale The Company must register and register each employee to the Social Security.	1 day (simultaneous with previous procedure)	no charge