Register new business

Register new business

Register new business:

Get a business license:

 Commercial licenses are issued in accordance to the Somaliland Trade Regulations and/or Commercial Laws. You can read the process of application for multi type business license simply by clicking the links (http://www.somalilandchamber.com/?page_id=152 andhttp://so- malilandmof.com/services/business-enterprise/).

Learn the legal tariffs for taxes and licenses:

The current Tariffs for Taxes and Licenses in Somaliland are based on the presidential decree number J.S.L/M/XERM/249-2172/112013 dated on 24/11/2013 and law No.  0369/112013 announcing the enforcement of the amendment of the tariffs for taxes and licenses and the letter of the House of Representatives of the Republic of Somaliland numbered as GW/ WAK/04/147/2013 of 24/11/2013 as they approved this amendment. The Ministry of Finance officially circulated a decree to enact this law being as follows:-

No

Description

Applicant

Amount

1

Local:

Auditing firm

Accounting firm

Sales and marketing firm

Economic firm

ICT firm

Logistics and procurement

Sole proprietor

$150

Partnership

$300

2

Foreigners and joint ventures:

Auditing firm

Accounting firm

Sales and marketing firm

Economic firm

ICT firm

Logistics and procurement

Sole proprietor

$1,000

Partnership

$2,000

3

Category 2: Local:

Media firm

Engineering consultancy

Laundry firm

Beauty salon

Advertisement firm

Sole proprietor

$300

Partnership

$500

4

Category 2: Foreigners & Joint Ventures:

Auditing firm

Accounting firm

Sales and marketing firm

Economic firm

ICT firm

Logistics and procurement

Sole proprietor

$1,500

Partnership

$3,000

5

Category 3: Local:                  

Monitoring & Evaluation firm

Environmental assessment firm

Fund management firm

Commission agency

 

 

 

 

 

 

Taxes levied by the Local Government/Municipality:

When you want to establish and open a business in Somaliland, the respective Local Government/Municipality will visit you upon your request for registration. They will assess the scale of your business and decide which of the below 7 Categories your business matches:

  1. Category 1: SL SH 2,800,000
  2. Category 2: SL SH 2,540,000
  3. Category 3: SL SH 770,000
  4. Category 4: SL SH 550,000
  5. Category 5: SL SH 360,000
  6. Category 6: SL SH 230,000
  7. Category 7: SL SH 215,000

In addition, the daily collection of one thousand Somaliland shillings is done by the Local Government from the small business vendors that are not officially established business with a permanent place. 

Click here Somaliland Investment Guide for knowing investment opportunities

Summary of Main Laws and Policies Related to Economic Development in Somaliland 

As according to the Somaliland National Development Plan II (2017-2021), the below table presents the main laws and policies related to economic development in Somaliland (Extracted from the NDP II Page 95)

 Laws and policies

Key content

Somaliland Companies Law (Law No: 25/2004)

- It regulates setting up and operation of companies in Somaliland. Second amended version is awaiting ratification by the Parliament

Foreign Investment Law (Law No: 29/2004)

- It deals with the protection and promotion for foreign companies doing business in Somaliland

Somaliland Central Bank Act (Act No: 54/2012)

- It provides the legal basis for establishment and operation of the Bank of Somaliland as supervisor and regulator of the financial system

Somaliland Telecommunication Act (Act No: 50/2011)

- It regulates the telecommunication companies in Somaliland

Islamic Banking Act (Act No: 55/2012)

- It refers to a system of banking activity that is consistent with the Islamic Law (Sharia). It is guided by principles of Islamic Economics.

Trade Classification Act (Act No: 24/2006)

- It provides categories for businesses trading in Somaliland

Inland Revenue Act (Law No: 73/2016)

- It establishes revenue authorities (RAs) for tax and customs administration

National Audit Act (Law No: 74/2016)

- It establishes the external auditor of public services

Customs Act (Law No: 72/2016)

- It deals with customs operations and modernization of their services

Weigh and Measurement Act

- Outdated and need to be reviewed. No inspection mechanisms in place

Intellectual Property Act

- Outdated and need to be reviewed. No enforcement

Commercial Bank Bill

- It deals with the undertaking of Banking Finance Business, security business and credit fancier business

- It has not been approved yet by the House of Representatives

Anti-Money Laundering Draft Bill

- It regulates the activities related to money laundering

- It has not been approved yet by the House of Representatives

Petroleum Act

- It regulates de exploration and drilling of oil petroleum to all Somaliland

- It has not been approved yet by the House of Representatives

Draft code of Electrical Energy

- It regulates electricity companies a

- It promotes customer-oriented electricity services and will establish the Energy Regulatory Commission

- It is still in its draft form

Domestic Investment Law

- It regulates domestic investors

- It is still in its draft form

Draft Mining Code

- It deals with mining activities inside the territory of Somaliland.

- It is still in its draft form, but it has already been submitted to the House of Representatives

Microfinance Policy

- It is still in its draft form, but it has already been submitted to the cabinet

- It still needs to be submitted to the House of Representatives

PPP Policy

- It is still in its draft form, but it has already been submitted to the cabinet

- It still needs to be submitted to the House of Representatives

Cooperatives Policy

- It is still in its draft form

- Pending for consultation and validation

- It still needs to be submitted to the cabinet

Trade Policy

- It is still in its draft form

- Situation analysis is finalized

SME Policy

- It is still in its draft form

- Situation analysis in underway

The government with its development partners has started a task force to reform some laws that could make it easier doing business in Somaliland. This task force’s efforts are based on the IFC-World Bank’s Doing Business framework and many of the acts, laws and policies, both recently approved and underway, are in line with the framework.