Post-Incorporation Procedures for Businesses in Rwanda

Our post-incorporation procedures for businesses in Rwanda guide caters to many businesspeople who find themselves at a loss after incorporating their companies, uncertain of where to begin, which is where expert advice from a legal perspective comes in. Others might start operations immediately, overlooking critical details that could later lead to unfortunate consequences. At Stabit Advocates, we are dedicated to assisting you with the necessary legal compliance and frameworks, including migration procedures. Below is a brief guide to the post-incorporation procedures to help your business start operating legally.

1. Acquisition of Your Business’s Trading License and Other Relevant Licenses

Before commencing any business activities in Rwanda or other jurisdictions, a trading license is required. In Rwanda, this license is issued by the Rwanda Revenue Authority upon opening a decentralized tax account and paying the prescribed fee. Operating a business without a trading license can result in penalties.

Certain businesses, such as construction and engineering consultancy firms, mining and energy firms, gaming establishments, and liquor import and trading entities, require specific licenses to operate. It is crucial to obtain the necessary licenses before starting operations to avoid penalties or potential bans by the regulatory authority.

2. Opening a Bank Account

A newly incorporated company should have a bank account. We recommend having both a United States Dollar (USD) account and a local currency (RWF) account to mitigate losses due to fluctuating foreign exchange rates. Reputable banks in Rwanda include Bank of Kigali, Equity Bank, I&M Bank, Access Bank, EcoBank, and Coge Bank. Requirements for opening a company bank account across all banks include:

• Copy of the company certificate and full registration details issued by Rwanda Development Board (RDB)
• An application letter for opening a bank account
• Board resolution from the company shareholders to open a bank account
• Copy of national ID or passport of the company shareholders
• Copy of national ID or passport of the account signatories
• Two passport-sized photographs of the account signatories
• An initial deposit

The bank account opening process is swift, typically taking no more than three days if all requirements are met. A company bank account can also be opened in the absence of shareholders, provided a notarized Power of Attorney is issued by the nearest Rwandan Embassy and sent to Rwanda.

3. Registration of the Company’s Intellectual Property

To protect your brand, it is advisable to register the trademark of your company’s name and logo. This prevents other entities from using your name, thereby avoiding client confusion. For more details on trademark registration requirements, visit our website blog.

4. Putting Together a Team of Employees

A successful business relies on a competent and hardworking team. This is a crucial aspect for any new company. Human resource agencies can assist in vetting candidates if you face challenges in identifying suitable employees.

5. Obtaining Legal Requirements for the Employment Team

Prepare employment contracts for all employees in accordance with Rwandan Labour Law. For foreign employees, the company must apply for work permits. Visit the Stabit Advocates Blog for the procedure and requirements for work permit applications.

6. Establishment of an Office Address

Often, companies use temporary addresses during the registration process due to uncertainties about licensing or name approval. After incorporation, it’s essential to find a suitable office address that aligns with your business operations. We recommend using brokers who can effectively communicate with landlords and landladies in Kigali. Additionally, consider establishing a website, obtaining a Post Office Box number from Posta Rwanda, and setting up official company email and telephone numbers.

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Contact Information

Stabit Advocates

Website: www.stabitadvocates.com

Email: info@stabitadvocates.com

Phone: +250 789 366 274

For more information or to discuss your case, please contact us at www.stabitadvocates.com.

This guide is intended to provide general information and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified attorney at Stabit Advocates.