Investing in Rwanda is a big step for your business. Expanding across borders will help you form important business relationships, add talented new employees to your team, and possibly provide new services in a brand new country. Despite all the excitement, you’re still responsible for learning how to set up a Rwanda subsidiary and complying with local subsidiary laws.
Globalization Partners will take this step out of the equation. We’ll gladly use our existing subsidiary to help you start working in a few days without the hassle of setting up your own subsidiary. As the Employer of Record, we’ll also shoulder all compliance so that you can run your company without focusing on Rwanda’s subsidiary laws.
How to Set up a Subsidiary in Rwanda
Before going through the Rwanda subsidiary setup process, you need to consider where you’ll incorporate and how you want to operate in the country. Separate cities or regions in Rwanda may have their own regulations that make it easy or difficult to incorporate. We recommend researching multiple locations within the country and selecting an office space in an area that’s friendly to incorporation.
Your business goals also impact what type of entity you choose to incorporate as. Rwanda allows several subsidiary structures, including a public limited company, limited liability company (LLC), and representative company. Many companies choose to set up their subsidiary as an LLC since it provides more freedom to operate in Rwanda and protects both the parent company and the subsidiary.
The Rwanda subsidiary setup process includes the following steps:
- Registering your company with a copy of your ID or passport
- Completing two copies of Memorandum of Association Art 14
- Opening an in-country bank account and depositing your paid-up capital
- Paying corporate taxes on all company profits
- Filing accounts with the Registrar of Companies
- Going through audits if you make more than 400 million Rwandan francs per year
Rwanda’s Subsidiary Laws
Rwanda’s subsidiary laws depend on what entity you choose for the incorporation process. LLCs require at least one shareholder and one director who can be of any nationality. You also need at least $850 in paid-up capital to deposit into a bank to complete the process.
All companies need certain documents to comply with Rwanda’s subsidiary laws. Your LLC will need a company name, provision of business activities, information about shareholders and directors, an office address, and more. You need to prepare these documents and information ahead of time to set up your subsidiary successfully.
Benefits of Setting up a Rwanda Subsidiary
Although setting up a subsidiary can take weeks or months, it’s a necessary step of the traditional expansion process. If you incorporate as an LLC, you’ll also get the benefit of limited liability. Your parent company does not have to worry about incurring any debt or liability from the subsidiary, and you can choose to run your subsidiary in a way that matches Rwanda’s overall business culture.
Your business will receive more benefits through Rwanda subsidiary outsourcing with a global PEO such as Globalization Partners. We’re experts in Rwanda’s subsidiary laws, and we’ll use our knowledge to help you expand quickly into the country. You won’t have to go through the Rwanda subsidiary setup process when you work with us — we can use our existing subsidiary to help you get started in a few days without worrying about compliance.
What Do You Need?
There are three things you need for successful incorporation — time, money, and knowledge. You should block off the time you’ll require to travel back and forth to Rwanda or choose another company executive to handle the subsidiary setup process. We also recommend working with your accounting department to set aside the money you need for all the fees involved.
If you do not have anyone at your company who understands Rwanda’s subsidiary laws, you should hire a consultant or a lawyer or work with an employee who has the time to learn the laws. Working with an expert will ensure you stay compliant and give you the peace of mind you need to move forward.
Globalization Partners Can Help
Globalization Partners can use Rwanda subsidiary outsourcing to help make your expansion easier. Contact us today to learn more.