Eritrea Company Formation & Entity Choice

Entity types, capital and incorporation

Business entities in Eritrea are established under the Eritrean Transitional Commercial Code, with registration handled through the relevant commercial registry and licensing authorities. Common forms are the private limited company (PLC) and the share company. Capital figures below are reported by formation guides and should be confirmed.

• Sole proprietorship — Single owner with unlimited personal liability; simplest and most common form (Eritrean Transitional Commercial Code)
• Partnership — Two or more partners sharing profits and liabilities; general partnership has joint liability (Eritrean Transitional Commercial Code)
• Private limited company (PLC) — Limited-liability company; minimum one shareholder and one director (any nationality) (Eritrean Transitional Commercial Code)
• Minimum share capital — private limited company — ERN 15,000 ERN ((approx — confirm)) (Eritrean Transitional Commercial Code)
• Share company — Public/share company requiring at least 5 shareholders (Eritrean Transitional Commercial Code)
• Minimum share capital — share company — ERN 50,000 ERN ((approx — confirm)) (Eritrean Transitional Commercial Code)
• Core incorporation steps — Reserve name; draft Articles of Association; deposit capital; register with commercial registry; obtain business/trade licence and tax registration ((approx — confirm)) (Eritrean Transitional Commercial Code)
• Typical registration timeline — Approximately 1–4 weeks depending on entity type and approvals ((approx — confirm)) (Eritrean Transitional Commercial Code)
• Foreign investment approval — Foreign investors typically require an investment licence/approval from the relevant investment authority ((approx — confirm current statute)) (Investment Proclamation (Eritrea))
• Core annual compliance — Annual income tax return, maintenance of accounting records, and licence/registration renewals ((approx — confirm)) (Income Tax Proclamation No. 24/2011)