The Investment Permit Operation Process for Somalia is easy, simple, and requires just a little procedure. The methods may slightly differ depending on the business form under which investors plan to operate their business. In Somalia, foreign investors are allowed to incorporate a sole director company and register a completely owned regional company without a regional shareholder. The license expires each year, and the renewal cost is 50 percent of the original registration amount.
The procedure involved in company registration
Appoint a notary and finish the name reservation form
They should finalize a name reservation form at the Notary Public’s office.
A notary verifies the authenticity of the company name
The Notary Public takes the name reservation form to the Ministry of Commerce and Industry to prove whether the name has been registered before or not. Ministry officers consult a published list relating to the current company names in use. As of June 2016, this list had roughly 990 names. Name reservation isn’t obligatory in Somalia and is a recent practice.
Draft the Memorandum of Understanding and the articles of Association and endorse the incorporation documents
The Notary Public drafts the Memorandum of Understanding and the articles of Association and notarizes them.
The Notary Public will also need the following:
- Company Details,
- Request letter including:
- The shareholder’s contact information.
- A small percentage of shares.
- The trade name and company logo must be written.
- Copy of Passport.
- Two pictures of passport size.
Notary charges are generally USD 100.
Register the company and pay for the monetary license and the business document
There are no formal charges scheduled for business enrollments. The cost is related to the practice. Still, in numerous cases, it’s subject to negotiations. Thus, some investors could pay extra or less depending on their negotiation expertise. The business document obtained at the Megacity will need to be posted at the company’s property front door.
Apply for the business document at the Ministry of Commerce and Industry
Business entrepreneurs can apply for a business document at the Office of the Ministry of
Commerce and Industry, where the operation is circulated internally for confirmation from three different departments. The Department of Archive collects all operation requests by indicating the conditions demanded from the new business. Also, the Director-General of the Department of Business Registration issues evidence and sends the submitted documents to the Attorney General’s office for his or her confirmation. After carrying out the confirmation of the attorney general, the business license is transferred to the Ministry of Commerce and Industry for the Minister to sign.
The needed documents to apply for the business documents are:
- The signed incorporation documents.
- Handwritten request letter written and sealed by the new company representative.
- 2 pictures of passport size and particular Identification documents (generally passport).
In May of 2016, the government started a plan to issue a public identity card, but it isn’t in place yet.
Open a bank account
Between 2015 and 2016, five monetary banks started operations in Mogadishu, Somalia (e.g, International Bank of Somalia, Dahshal Bank, and Premia Bank). It generally takes between 2 and 5 business days to open a bank account and a background check isn’t done because there’s no particular history data available yet. No minimal capital is needed to start a business in Somalia. Still, evidence of a bank account is needed to get a monetary regional license.
Get the monetary regional license at the Department of Issuing Permits of the Mogadishu Municipality
The needed documents are as follows:
- Handwritten request letter.
- Passport identification documents.
- Evidence of a bank account.
In some cases, the business document attained at the Ministry of Commerce and Industry is also attached. Small businesses are requesting the monetary regional license at the Megacity. Larger companies generally only apply for a monetary license at the Ministry of Commerce and Industry. The cost is related to regular practice, but it varies depending on the negotiation expertise of the person requesting the monetary regional license.
Register with the Chamber of Commerce
Companies Generally register at the Chamber of Commerce. It isn’t obligatory, but it’s a regular practice to become a member of the Chamber of Commerce.
Buy a company seal
Although not needed by law, entrepreneurs should buy a company seal before formally beginning business operations as it’s generally used in business operations. Depending on how assertive and patient the business entrepreneurs are with the seal maker, it can take between 3 and 10 days.
