Republic of Rwanda

Company Formation in Republic of Rwanda

Republic of Rwanda is a good destination to set-up your company to cater to the fast growing African market with a large population. YourGlobalPro can assist in the Republic of Rwanda for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

Republic of Rwanda (Rwanda) is a sovereign state in Central and East Africa and one of the smallest countries on the African mainland. It is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of Congo. The western part of the country is dominated by mountains while the east by Savannahs. The below content will explain you in detail about the requirements for the company formation in Rwanda, know more about the process of Trademark registration in Rwanda and understand the Rwanda Legal and Compliance requirements.

Republic of Rwanda

Doing Business Introduction

Rwanda economy is based mostly on subsistence agriculture by local farmers using simple tools. Agriculture comprises 33% of the economy. Primary exports of the country are coffee and tea while major export markets are China, Germany and the United States. Tourism has also become one of the country’s developing economic resources. As per Doing business report of The World Bank –Rwanda ranks 56 for 2017 survey in terms of ease in doing business.

 

YourGlobalPro professionals can assist its client with any type of company formation in Rwanda, trademark registration in Rwanda and other recurring services for your business in Rwanda.

Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Rwanda are as mentioned below:

·       Limited Liability Company (LLC)

·       Public Limited Company (PLC)

·       Branch Offices

·       Representative Office

 

Time Frame for Incorporation of Company in Rwanda varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for the process of Company formation in Rwanda to be completed is 3-7 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Rwanda:

·       Establishing a business in Rwanda is fast and easy. Incorporation can be done in less than a week.

·       Rwanda is ranked as one of the least corrupt country in Sub-Saharan Africa. The country also boasts a relatively low crime rate.

·       100% foreign ownership for LLCs

·       Cheaper cost of living as compared to other African and developing countries

·       No minimum capital requirement for LLCs

 

·       Strong agricultural sector

Tax Registration and Filing

Resident entities are subject to corporate income tax on worldwide income. Non-resident entities are subject to corporate income tax on income derived through a permanent establishment. Non-resident entities without a permanent establishment in Rwanda are not subject to corporate income tax, but they may be subject to other taxes in Rwanda.

Corporate Income Tax Rate 30%
Capital Gains Tax 30%
Branch Profits Tax Rate 30%
Withholding Taxes Dividends - 15%
Interest - 15%
Royalties - 15%
Technical, Service and Management Fees - 15%
Value Added Tax 18%
Fiscal Year 1 January to 31 December
Advance Tax Instalments of 25% of the Tax due to be paid by 30 June, 30 September and 31 December

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Rwanda has entered double tax treaties with Belgium and South Africa.

Trademark registration

Trademark registration in Rwanda is performed through the Rwanda Development Board. The Trademark Registration is valid 10 years from the date of filing trademark and is renewable for similar periods of 10 years. It takes approximately 10 months from first filing to registration

 

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Rwanda for your business in Rwanda. For assistance or advice in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Rwanda:

·       Articles and memorandum of association should be notarized by a Public Notary. Copies of the notarized documents are given to the following offices: Public Notary, Registrar’s General Office and the Official Public Gazette for publication.

·       Branch of foreign companies should apply with the Minister of Trade and Industry

·       Within 7 days of the company’s incorporation, a unique Tax Identification Number must be obtained.

 

·       All employees must be registered with the Rwanda Social Security Board

Accounting Services

The International Financial Reporting Standards (IFRS) is required to be followed and adopted in the accounting practices in Rwanda. Financial statements are required to be filed with the tax declaration of the companies.

 

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Rwanda Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

Rwanda is systematically aligning its auditing profession with international best practice standards.  The Institute of Certified Public Accountants of Rwanda (ICPAR) oversees the accounting and auditing practice in the country. The audited financial statement is required for all entities during tax filing.

 

YourGlobalPro professionals provide you auditing services as required by your business in Rwanda.

Banking

Opening an account in a bank is quite easy in Rwanda. The documentation requirement differs from Bank to Bank and needs to be compiled for the Bank account opening.

The major banks in Rwanda are I & M Bank Rwanda Limited, Bank of Kigali, Compagnie Generale de Banque, Rwanda Development Bank, and Urwego Opportunity Bank. All banks are stable, reliable and offer the same level of services.

 

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in an opening bank account for your business plan in Rwanda.

Legal and Compliance

In Rwanda, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Rwanda legal and compliance requirement to be followed by incorporated entities:

·       LLCs in Rwanda require at least 2 shareholders and a maximum of 50 shareholders.

·       LLCs are not allowed to engage in banking, insurance, and financing business activities.

·       PLCs are required to have at least 7 shareholders. There is no limit on the number of shareholders.

·       A minimum capital of RWF 100 million is required for PLCs.

·       Branches of foreign entities are not considered as separate legal entities.

 

YourGlobalPro professionals can assist you with Rwanda Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Rwanda:

·       All labor contracts with a period exceeding 90 successive working days must be in writing.

·       Contract of employments concluded for a determined duration must not exceed 2 years.

·       Paid annual leaves are as follows: Workers with 1-year tenure: 18 days Workers with 5-years tenure: 19 days Workers with 10-years tenure 21 days

·       Application for work permits of foreign nationals is passed to the Director General of Immigration and Emigration.

 

·       Work permits serve as resident permits as well. This allows foreign nationals to live in Rwanda during his/her employment.

Country Statistics

Capital Kigali
Largest city Kigali
Total Area 26,338 Sq. Km.
Population 11,262,564
Density 445 / Sq. Km.
Currency Rwandan Franc
Government Unitary Semi-Presidential Republic
Official Language Kinyarwanda
Religion Christian: 93.2%
Islam: 2.0%
Others: 4.8%
Government Office Hours Mon-Fri (0700-1600 Hrs)
Business Office Hours Mon-Fri (0800-1700 Hrs)
Banks and Exchange Houses Hours Mon-Sat (08.00 to 17.00 Hrs)

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