Doing Business with Djibouti

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

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

Djibout Invest

Tel: +253 21 35 88 41
Email: investindjibouti1@gmail.com
Web: www.djiboutinvest.com

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General Directorate of Customs and Indirect Taxes

Tel: +253 21 32 71 72
Email: secretariat-dgddi@douanes.gouv.dj
Web: www.douanes.gouv.dj

National Chamber of Commerce

Chambre de Commerce de Djibouti

Tel: +253 21 35 10 70
Email: ccd@ccd.dj
Web: www.ccd.dj

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

Ministry of Economy and Finance, Djibouti

Phone: +253 21 32 51 05
Email:
cabinet@economie.gouv.dj
Web: www.economie.gouv.dj

  • Type of Government: Semi-presidential republic
  • Population: Approximately 1 million
  • GDP: Around $3.5 billion USD
  • Corporate Tax Rate: 25%
  • Personal Income Tax Rate: Progressive, up to 30%
  • Major Exports: Livestock, hides, salt
  • Major Imports: Food, beverages, transport equipment

 

Exporting to Djibouti involves several important steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Identify demand for your product in Djibouti.
    • Understand the competitive landscape and local consumer preferences.
  2. Verify Export Regulations

    • Ensure compliance with your country’s export regulations and Djibouti’s import requirements.
    • Check for any specific product certifications or standards needed.
  3. Find Local Partners

    • Establish relationships with local distributors or agents in Djibouti.
  4. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure documents meet Djiboutian customs requirements.
  5. Arrange Logistics and Shipping

    • Select a reliable shipping company experienced with Djiboutian imports.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  6. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes required for import.
  7. Distribution and Sales

    • Establish distribution channels within Djibouti.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

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

  1. Conduct Market Research

    • Analyze demand for the goods you wish to import.
    • Understand local consumer preferences and competition.
  2. Verify Import Regulations

    • Ensure compliance with Djiboutian and international import regulations.
    • Check for any required licenses or certifications for your products.
  3. Find a Reliable Supplier

    • Establish relationships with reputable suppliers who meet your standards.
  4. Prepare Import Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure all documents meet Djiboutian customs requirements.
  5. Arrange Logistics and Shipping

    • Select a reliable shipping company experienced with Djiboutian imports.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  6. Customs Clearance

    • Engage a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes required for import.
  7. Comply with Health and Safety Standards

    • Ensure products meet health and safety standards set by Djiboutian authorities.
  8. Distribution and Sales

    • Organize distribution channels for your goods in Djibouti.
    • Build relationships with local retailers or wholesalers.

Key Contacts

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

Step-by-Step Guide

  1. Choose a Company Name

    • Ensure the name is unique and complies with Djiboutian naming regulations.
    • Check availability through the Djibouti Chamber of Commerce.
  2. Select a Business Structure

    • Decide on the type of company, such as SARL (limited liability company) or SA (public limited company).
  3. Prepare Incorporation Documents

    • Draft the articles of association.
    • Include details of shareholders, directors, and company secretary.
  4. Deposit Share Capital

    • Minimum share capital for an SARL is typically around DJF 1 million.
    • Deposit the capital in a Djiboutian bank account.
  5. Register the Company

    • Register with the Djibouti Chamber of Commerce.
    • Submit the incorporation documents and proof of capital deposit.
  6. Pay Registration Fees

    • Fees vary based on the business structure and capital; consult the Chamber of Commerce for details.
  7. Obtain a Business License

    • Apply for a business license from the Ministry of Trade and Tourism.
  8. Register for Taxes

    • Register with the Djibouti Tax Authority for tax purposes.
  9. Comply with Employment Regulations

    • If hiring employees, register for social security and insurance.

Key Contacts

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

  1. Conduct Market Research

    • Analyze local demand and industry trends.
    • Evaluate potential competitors and supply chain logistics.
  2. Choose a Suitable Location

    • Identify industrial zones with necessary infrastructure.
    • Contact local government or industrial parks for available sites.
  3. Understand Legal Requirements

    • Familiarize yourself with Djiboutian investment laws and regulations.
    • Decide on the business structure, such as a limited liability company (SARL).
  4. Develop a Business Plan

    • Prepare a detailed proposal outlining your investment, objectives, and operations.
    • Include financial projections and environmental impact assessments.
  5. Register the Business

    • Register your company with the Djibouti Chamber of Commerce.
    • Obtain necessary licenses and permits for manufacturing.
  6. Secure Financing

    • Explore funding options through banks or investment agencies.
    • Consider government incentives for manufacturing.
  7. Design and Construct the Facility

    • Hire architects and contractors familiar with local regulations.
    • Ensure compliance with building codes and safety standards.
  8. Install Equipment and Machinery

    • Import necessary machinery, ensuring compliance with local regulations.
    • Coordinate with customs for smooth importation.
  9. Obtain Necessary Permits and Licenses

    • Apply for industry-specific licenses and permits.
    • Ensure compliance with health and safety regulations.
  10. Recruit and Train Staff

    • Hire local talent and provide necessary training.
    • Work with Djiboutian employment agencies for assistance.
  11. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

Registering a trademark in Djibouti involves several steps to ensure legal protection. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Check the availability of your trademark through local resources to ensure it’s not already registered.
  2. Prepare Your Application

    • Gather necessary information: trademark design, goods/services classification, and applicant details.
  3. Submit Your Application

    • File the application with the Office of Industrial Property and Commerce Protection (ODPIC).
    • Ensure all required information is complete and accurate.
  4. Pay the Application Fee

    • Fees vary based on the classification and number of classes. Contact ODPIC for specific costs.
  5. Examination Process

    • The office reviews the application for compliance and potential conflicts.
    • Respond promptly to any objections or requests for additional information.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition.
    • There is a period for third parties to oppose the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered.
    • Receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed indefinitely.
    • Submit renewal applications before expiry to maintain protection.

Key Contacts

  • Office of Industrial Property and Commerce Protection (ODPIC)
    • Website: ODPIC (Check for updates as specific URLs may vary)

Resolving commercial disputes in Djibouti involves several steps and options. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to find an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions.
    • Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration as a private dispute resolution method.
    • Provides a structured yet flexible approach to resolving disputes.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in Djiboutian commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate Djiboutian court.
    • Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case.
    • Follow the legal procedures as guided by your attorney.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Djibouti, it’s important to understand various factors that can influence operations. Here’s an overview:

Social and Cultural Factors

  • Language and Communication
    • The official languages are French and Arabic. Somali and Afar are also widely spoken.
    • Building relationships and trust is important in business dealings.
  • Business Etiquette
    • Formal greetings and respect for hierarchy are valued.
    • Punctuality is expected in business meetings.

Political Environment

  • Government Structure
    • Djibouti is a semi-presidential republic with a stable political climate.
    • The government actively encourages foreign investment.
  • Regulatory Environment
    • Transparent regulatory framework with efforts to reduce bureaucracy.
    • Strong emphasis on economic development and infrastructure projects.

Economic and Foreign Exchange Factors

  • Currency
    • The currency is the Djiboutian franc (DJF), which is pegged to the US dollar.
    • The economy is primarily service-oriented, focusing on trade and logistics.
  • Investment Climate
    • Offers strategic location for trade in the Horn of Africa.
    • Free zones provide tax incentives for businesses.

Rule of Law

  • Legal System
    • Based on civil law principles.
    • Protection of property rights and contract enforcement is improving.
  • Intellectual Property
    • Developing IP laws with efforts to align with international standards.

Infrastructure

  • Transportation and Logistics
    • Well-developed port facilities critical for regional trade.
    • Growing investments in road and rail infrastructure.

Relevant URLs

Our Members Include Leading Organizations in Djibouti

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