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Doing Business with Somalia

A comprehensive guide to doing business, exporting, investing, and manufacturing in Albania.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Somalia Investment Promotion Office

Tel: +252 61 911 1530
Email: info@sominvest.gov.so
Web: www.sominvest.gov.so

National Chamber of Commerce

Albanian Chamber of Commerce and Industry

Tel: +252 185 0320
Email: info@somalichamber.so
Web: www.somalichamber.so

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance

Tel: +252 6177 47363
Email: mof@mof.gov.so
Website: www.mof.gov.so

Basic Statistics about Somalia

  • Type of Government: Federal parliamentary republic
  • Population: Approximately 17 million
  • GDP: Around $7.7 billion USD
  • Corporate Tax Rate: 0% (informal; taxation system is under development)
  • Personal Income Tax Rate: 0% (informal; taxation system is under development)
  • Major Exports: Livestock, bananas, fish
  • Major Imports: Manufactured goods, petroleum products, foodstuffs

 

Importing to Somalia

Exporting goods to Somalia involves several key steps. Here’s a detailed guide:

  1. Research Market Requirements

    • Understand import regulations and product standards specific to Somalia.

  2. Identify Your Product’s HS Code

    • Determine the Harmonized System (HS) code for tariff and regulation details.

  3. Prepare Documentation

    • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.

  4. Check Tariff and Non-Tariff Barriers

    • Verify any tariffs and ensure compliance with non-tariff measures.

  5. Select a Reliable Freight Forwarder

    • Choose a logistics provider experienced in shipping to Somalia.

  6. Comply with Labeling and Packaging Regulations

    • Ensure your products meet local labeling and packaging standards.

  7. Arrange for Insurance

    • Secure insurance to cover potential shipping risks.

  8. Submit Customs Declaration

    • Work with your freight forwarder to submit the necessary customs declaration.

  9. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

Investing / Incorporating in Somalia

Importing goods into Somalia involves several key steps. Here’s a detailed guide:

  1. Obtain an Importer’s License

    • Register with the Ministry of Commerce and Industry.

  2. Classify Your Goods

    • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.

  3. Check Import Requirements

    • Verify if your goods need specific licenses or permits from relevant authorities.

  4. Prepare Documentation

    • Gather necessary documents: commercial invoice, bill of lading, packing list, and certificate of origin.

  5. Select a Customs Broker

    • Engage a licensed customs broker to assist with the import process.

  6. Submit Import Declaration

    • File the import declaration through the Somalia Customs system.

  7. Pay Duties and Taxes

    • Calculate and pay any applicable import duties and taxes.

  8. Arrange for Cargo Clearance

    • Coordinate with your freight forwarder or customs broker for the clearance and delivery of goods.

Key Contacts

Manufacturing in Somalia

Incorporating a company in Somalia involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the type of company, such as a Limited Liability Company (LLC).

  2. Reserve a Company Name

    • Check the availability of your desired company name with the Ministry of Commerce and Industry.

  3. Prepare Incorporation Documents

    • Draft the company’s Articles of Association and other required documents.

  4. Submit Application to the Ministry of Commerce and Industry

    • File the incorporation documents either online or in person.

  5. Obtain a Business License

    • Apply for a business license from the relevant local authority.

  6. Register for Taxation

    • Register for tax purposes with the Somali Revenue Authority.

  7. Open a Bank Account

    • Set up a business bank account in Somalia.

Costs

  • Registration Fee: Varies depending on the company type and location.

Key Contacts

Trademark Registration in Somalia

Setting up a manufacturing plant in Somalia involves several key steps. Here’s a detailed guide:

  1. Conduct a Feasibility Study

    • Assess market demand, location suitability, and resource availability.

  2. Choose a Business Structure

    • Decide on the type of business entity, such as a Limited Liability Company (LLC).

  3. Register the Company

    • Register your business with the Ministry of Commerce and Industry.

  4. Secure Financing

    • Arrange funding through banks or investors.

  5. Select a Location

    • Choose an industrial area with access to necessary infrastructure and resources.

  6. Obtain Necessary Permits and Licenses

    • Apply for construction and operational permits from relevant authorities.

  7. Design and Construct the Facility

    • Hire architects and contractors to design and build the plant according to regulations.

  8. Purchase and Install Equipment

    • Acquire machinery that meets safety and operational standards.

  9. Hire and Train Employees

    • Recruit skilled workers and provide necessary training.

  10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

Commercial Dispute Resolution in Somalia

Resolving commercial disputes in Somalia involves several key steps. Here’s a detailed guide:

  1. Consult Legal Counsel

    • Engage a lawyer experienced in Somali commercial law for advice.

  2. Attempt Negotiation

    • Try to resolve the dispute amicably through direct negotiation with the other party.

  3. Mediation

    • Use mediation services to facilitate a resolution. This approach is often faster and less costly.

  4. Arbitration

    • Consider arbitration for a binding decision. This can be an alternative to court proceedings.

  5. Litigation

    • If necessary, file a lawsuit in the Somali courts. Prepare for a formal legal process.

  6. Enforcement of Judgments

    • Ensure the decision is enforced through the relevant authorities.

Costs

  • Legal Fees: Vary depending on the complexity and duration of the dispute.
  • Court Fees: Required for litigation and depend on the case specifics.
  • Mediation/Arbitration Fees: Vary based on the service provider.

Key Contacts

Other Notes on Doing Business with Somalia

When considering business in Somalia, it’s important to understand various factors:

Social and Cultural Factors

  • Language: Somali and Arabic are official languages; English is also used in business.
  • Business Etiquette: Building relationships is crucial. Respect local customs and traditions.

Political Factors

  • Government: Federal parliamentary republic.
  • Stability: Political conditions can be volatile; staying informed is essential.

Economic Factors

  • Currency: Somali Shilling (SOS).
  • Key Industries: Agriculture, livestock, telecommunications, and remittances.

Foreign Exchange

  • Exchange Rate: Influenced by regional and global economic conditions. Regular checks are advised.

Rule of Law

  • Legal System: Mix of civil, sharia, and customary law.
  • Intellectual Property: Enforcement can be challenging; legal advice is recommended.

Infrastructure

  • Transport: Developing infrastructure; reliance on ports and roads.
  • Utilities: Limited access; plan for reliable supply.

Key Contacts

Our Members Include Leading Organizations in Somalia

Ask our Experts on Doing Business in/with Somalia

If you’re looking to do business or invest in Somalia, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.

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