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Growing to Rwanda is a big step for your business. Expanding across borders will help you form important business relationships, add talent to your team, and possibly provide new services in a new country. Despite all the excitement, you’ll still have to learn how to set up a Rwanda subsidiary and comply with local laws.

G-P can take this step out of the equation. As a global Employer of Record (EOR), we can help you start working in a few days without the hassle of setting up your own subsidiary. We’ll also mitigate compliance risks so that you can run your company without worrying about Rwanda’s subsidiary laws.

How to set up a Rwanda subsidiary

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.

Your business goals also impact what type of entity you should 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 2 copies of a 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 RWF 400 million per year

Rwanda subsidiary laws

Rwanda’s subsidiary laws depend on what entity you choose for the incorporation process. LLCs require at least 1 shareholder and 1 director who can be of any nationality. You also need at least USD 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 in the traditional expansion process. If you incorporate as an LLC, you’ll also get the benefit of limited liability. Your parent company will 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.

However, your business will receive more benefits by partnering with a global Employer of Record (EOR) such as G-P. We’re experts in Rwanda’s subsidiary laws, and we’ll use our knowledge and technology 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 help you get started in a few days without worrying about compliance.

Other important considerations

There are a few 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 resources you’ll need for all the fees involved.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.

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