Doing Business with Eritrea

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

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

Albanian Investment Development Agency

Tel: +355 42 251 001
Email: info@aida.gov.al
Web: www.aida.gov.al

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General Directorate of Customs

Albania General Directorate of Customs - International Trade Council

 

Tel: +355 42 253 820
Email: helpdesk.dpd@dogana.gov.al
Web: www.dogana.gov.al

National Chamber of Commerce

Albanian Chamber of Commerce and Industry

Albanian Chamber of Commerce and Industry - International Trade Council

Tel: +355 45 800 932
Email: cci.tirana@cci.al
Web: www.cci.al

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

Ministry of Finance and Economy, Albania

  • Type of Government: One-party presidential republic
  • Population: Approximately 3.6 million
  • GDP: Around $2 billion USD
  • Corporate Tax Rate: 30%
  • Personal Income Tax Rate: Progressive, up to 38%
  • Major Exports: Copper, gold, zinc, livestock
  • Major Imports: Machinery, foodstuffs, manufactured goods

 

Exporting to Eritrea involves several steps. Here’s a comprehensive guide:

  1. Conduct Market Research

    • Identify demand for your product in Eritrea.
    • Understand local regulations and consumer preferences.
  2. Verify Export Regulations

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

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

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

    • Select a reliable shipping company experienced with African 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 Eritrea.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

  • Eritrean Ministry of Trade and Industry
  • Eritrean Customs Office
    • Contact details can be found through the Eritrean Ministry of Finance and Economy.

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

  1. Obtain an Importer’s License

    • Register your business and obtain an import license from the Eritrean Ministry of Trade and Industry.
  2. Verify Import Regulations

    • Check if your goods require special permits or certifications.
    • Consult the Eritrean Customs Office for specific regulations.
  3. Classify Your Goods

    • Determine the correct tariff classification for your products.
  4. Hire a Customs Broker

    • Work with a licensed customs broker to handle documentation and clearance.
  5. Prepare Import Documentation

    • Necessary documents include commercial invoices, bills of lading, and certificates of origin.
  6. Arrange Shipping and Logistics

    • Choose a reliable shipping company.
    • Ensure proper packaging and labeling of goods.
  7. Customs Clearance

    • Submit all documentation to the Eritrean Customs Office.
    • Pay any applicable duties and taxes.
  8. Receive Goods

    • Coordinate with your customs broker to receive and inspect the goods upon arrival.

Key Contacts

  • Eritrean Ministry of Trade and Industry
  • Eritrean Customs Office
    • Contact details are available through the Eritrean Ministry of Finance and Economy.

Incorporating a company in Eritrea involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Type

    • Decide on the type of company (e.g., LLC, corporation).
  2. Reserve a Company Name

    • Reserve a unique name with the Ministry of Trade and Industry.
  3. Draft the Articles of Incorporation

    • Prepare the company’s articles of incorporation and bylaws.
  4. Open a Bank Account

    • Open a bank account in the company’s name and deposit the required capital.
  5. Notarize Documents

    • Have the articles of incorporation notarized by a local notary.
  6. Register with the Ministry of Trade and Industry

    • Submit the notarized documents and pay the registration fees.
  7. Obtain a Tax Identification Number (TIN)

    • Register with the tax authorities to obtain a TIN.
  8. Register for Social Security

    • Enroll employees with the National Insurance and Social Security Authority.

Costs

  • Registration Fees: Vary depending on company type and capital.
  • Notary Fees: Depend on the complexity of the documents.
  • Legal Fees: Optional, depending on whether you use legal services.

Key Contacts

  • Eritrean Ministry of Trade and Industry
  • National Insurance and Social Security Authority
    • Contact details can be obtained through the Eritrean Ministry of Labor and Human Welfare.

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

  1. Conduct Market Research

    • Analyze local demand and industry trends.
    • Evaluate 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 investment laws and regulations.
    • Decide on the business structure, such as a limited liability company.
  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 Ministry of Trade and Industry.
    • 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 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 Eritrea involves several steps. Here’s a comprehensive guide:

  1. Conduct a Trademark Search
    • Check the availability of your trademark 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 Eritrean Ministry of Trade and Industry.
    • Ensure all required information is complete and accurate.
  4. Pay the Application Fee

    • Fees vary based on the number of classes. Contact the agency for current rates.
  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 challenge the registration.
  7. Registration and Certification

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

    • Trademarks are valid for a specific period and can be renewed. Submit renewal applications before expiry to maintain protection.

Costs

  • Application Fees: Vary based on the number of classes.
  • Legal Fees: Optional, depending on whether you use legal services for application preparation.

Key Contacts

Resolving commercial disputes in Eritrea involves several steps. 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 Eritrean commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate 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

  • Eritrean Ministry of Justice
    • Website: Contact details through the Eritrean government portal.

When considering doing business in Eritrea, it’s important to understand various influential factors. Here’s an overview:

Social and Cultural Factors

  • Language and Communication
    • The official language is Tigrinya, but Arabic and English are also used in business.
    • Building relationships and trust is crucial in business dealings.
  • Business Etiquette
    • Formal greetings and respect for hierarchy are valued.
    • Networking and personal connections are important.

Political Environment

  • Government Structure
    • Eritrea is a one-party presidential republic.
    • Political stability and government policies can impact business operations.
  • Regulatory Environment
    • The government controls various sectors, and navigating bureaucracy can be complex.

Economic and Foreign Exchange Factors

  • Currency
    • The official currency is the Eritrean Nakfa (ERN).
    • Foreign exchange controls are in place, affecting currency conversion.
  • Investment Climate
    • Opportunities exist in sectors like mining, agriculture, and energy.

Rule of Law

  • Legal System
    • Based on civil law with influences from customary laws.
    • Enforcement of contracts and property rights can be challenging.
  • Intellectual Property
    • IP laws exist, but enforcement may be limited.

Infrastructure

  • Transportation and Logistics
    • Developing infrastructure with key ports in Massawa and Assab.
    • Road and rail networks are limited but improving.

Relevant URLs

Our Members Include Leading Organizations in Eritrea

Ask our Experts on Doing Business in/with Eritrea

If you’re looking to do business or invest in Eritrea, 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.