Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity. 

To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.

If you plan to start a business in Africa, Rwanda is a good choice for registering your company. The Manimama Law Firm has conducted in-depth research, analyzed the main subtleties of incorporating in Rwanda, and is ready to share its results and help you choose the right jurisdiction. 

What are the main advantages of incorporating a company (business) in Rwanda?

1. Promising Location and Access to Regional Markets

Situated in the heart of East Africa, Rwanda serves as a gateway to the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA).

2. Political Stability and Investment-Friendly Policies

Rwanda is one of Africa’s most stable countries, actively implementing reforms to foster a pro-business environment. The government is committed to supporting investors through transparent regulations, strong property rights protections, and streamlined administrative processes.

3. Favorable Tax Regime and Investment Incentives

Rwanda offers competitive corporate tax rates and a range of incentives for priority sectors such as agriculture, energy, ICT, and manufacturing. Investors operating in Special Economic Zones can also benefit from tax holidays and customs exemptions.

4. Advanced Infrastructure and Focus on Innovation

The country invests heavily in transport infrastructure, digital technologies, and industrial parks. Modern roads, airports, high-speed internet access, and efficient logistics networks make doing business seamless. Rwanda is also recognized for its strong commitment to innovation and technological advancement.

5. Young and Educated Workers

Rwanda boasts a growing pool of young, educated professionals with modern skills in ICT, customer service, finance, and other sectors. Thanks to government-led education initiatives, companies can tap into a skilled workers ideal for developing innovative and scalable businesses.

How to register a company in Rwanda and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Verificate and reserve of the company name;
• Submit the application online via the RDB’s e-registration platform or submit documents at the RDB office;
• Obtain Taxpayer Identification Number (TIN);
• Obtain the Certificate of incorporation from the Registrar of Companies, Memorandum and Articles of Association;
• Open a corporate bank account.

Requirements for registering a company in Rwanda on the example of a Limited Liability Company (LLC):

• Shareholders: the company is required to have at least 1 shareholder.
• Director: at least one director must be appointed.
• Company secretary: it is mandatory.
• Minimum share capital: there is no minimum capital requirement.
• Legal address: a registered office in Rwanda is mandatory.
• Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.
• Accounting: companies are required to maintain proper financial records and prepare annual accounts.

What do you have to know about taxes when registering a company in Rwanda:

Corporate income tax (CIT):

The standard CIT rate is 30%.

However, micro-enterprise companies (with turnover of less than RWF 12 million in a tax period) pay flat tax amounts depending on their turnover amounts, and small businesses (whose turnover is between RWF 12 million and RWF 20 million in a tax period) pay a lump sum tax at the rate of 3% of turnover.

There are special CIT rates for certain industries or sectors of the economy.

Newly listed companies on capital markets are taxed as follows for a period of five years:

• If a company sells at least 30% of their shares to the public, the CIT rate is 25%.
• If a company sells at least 40% of their shares to the public, the CIT rate is 20%.

Personal income tax (PIT):

Residents are subject to tax at rates ranging between 0% and 30% on the following annual graduated scale of income:

• 0% – up to 60,000 RWF;
• 10% – 60,001 – 100,000 RWF;
• 20% – 100,001 – 20,00 RWF;
• 30% – 200,001 RWF and above

Value-added tax (VAT):

The standard VAT rate is 18% and applies to goods and services that are neither exempt from VAT nor zero-rated.

Services supplied are taxable if:

• The service recipient and the service provider are residents of Rwanda.
• The service recipient is a resident of Rwanda and the service is useful to the recipient in Rwanda.
• The service provider is a resident of Rwanda and the service is useful to the recipient in Rwanda.

Exports of goods and services are subject to VAT at 0%.

Some supplies are exempt from VAT, the main categories being supply of clean water service; goods and services for health purposes; educational materials and services; transport services; books, newspapers, and journals; financial and insurance services; lending or leasing interests in land or building for residential purposes; funeral services; energy supplies; lease of exempted goods; all unprocessed agricultural and livestock products; agricultural insurance services; gaming activities; goods and services for a special economic zone; mobile handsets; equipment for information, communication, and technology; goods sold in customs; aircraft and its spare parts/maintenance tools; and imported electric vehicles and accessories.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Rwanda. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in Rwanda, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Rwanda and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.