Afghanistan Company Formation & Entity Choice

Entity types, formation and annual compliance

• Overview of company formation framework — Companies in Afghanistan are formed and licensed primarily under the Law on Limited Liability Companies and the Corporations and Limited Liabilities Law, with registration handled through the central business registry (historically AISA / ACBR). The limited liability company is the most common vehicle for foreign and domestic investors. (Law on Limited Liability Companies; Corporations and Limited Liabilities Law)
• Limited Liability Company (LLC) — Most common entity; 2 to 50 members, liability limited to capital contribution ((approx — confirm member limits)) (Law on Limited Liability Companies)
• Corporation (joint-stock company) — Share-capital company suited to larger ventures; minimum founders apply (Corporations and Limited Liabilities Law)
• Sole proprietorship — Single owner with unlimited personal liability; licensed as an individual business (Commercial Code of Afghanistan)
• Branch / representative office of a foreign company — Foreign companies may register a branch or representative office to operate locally (Law on Limited Liability Companies)
• Minimum share capital (LLC) — No fixed statutory minimum capital for an LLC in practice ((approx — confirm; sector licences may impose minimums)) (Law on Limited Liability Companies)
• Business registry — Central Business Registry (ACBR) / investment agency, under the Ministry of Industry and Commerce ((approx — confirm current registry body)) (Law on Limited Liability Companies)
• Core incorporation steps — Name reservation; submit articles of association and shareholder documents; obtain business licence; obtain Taxpayer Identification Number (TIN); register for tax (Law on Limited Liability Companies)
• Taxpayer Identification Number (TIN) — TIN registration with ARD is mandatory for all businesses (Income Tax Law 2009)
• Incorporation timeline — Typically a few business days to several weeks depending on licence type ((approx — confirm)) (Law on Limited Liability Companies)
• Incorporation / licence cost — Government registration and licence fees apply (varies by capital and sector) ((approx — confirm current fee schedule)) (Law on Limited Liability Companies)
• Annual business licence renewal — Business licences must be periodically renewed with the registry ((approx — confirm renewal period)) (Law on Limited Liability Companies)
• Annual tax compliance — File annual income tax return within 3 months of year-end; file BRT quarterly; remit salary withholding monthly ((approx — confirm deadlines)) (Income Tax Law 2009)