Djibouti

Official Name: The Republic of Djibouti

Capital: Djibouti City

Languages: French, Arabic

Currency: Djiboutian franc (DJF)

OUR SERVICES;

Consultation (in person, online, phone)
Helping to prepare your documents
Start to finish your company registration process
Immigration services

Djibouti, a small country located in the Horn of Africa, boasts a rich history, diverse culture, evolving economy, and a unique political landscape. From ancient civilizations to colonialism and post-independence development, Djibouti’s historical trajectory has played a significant role in shaping its identity and influencing its present realities.

The history of Djibouti is intertwined with its strategic location, serving as a crossroads for trade between Africa, the Middle East, and Asia. The region has been inhabited for thousands of years, with evidence of early settlements dating back to the Neolithic period. Throughout history, Djibouti was influenced by various powers, including the Egyptians, Ottoman Empire, and European colonial powers. It gained independence from France on June 27, 1977, and has since focused on building its national identity and asserting its sovereignty.

Djibouti’s cultural diversity reflects its position as a meeting point for different cultures and influences. The population is composed of various ethnic groups, including the Afar, Issa, and Somali communities. Somali and Afar are the official languages, while Arabic and French also hold significant importance. Traditional customs, music, dance, and attire play a vital role in preserving cultural heritage, and Islam is the predominant religion, shaping the social fabric of the country.

The economy of Djibouti is largely driven by its strategic location and status as a major transshipment hub. The country serves as a gateway to international trade, connecting landlocked African countries to global markets through its port facilities and infrastructure. Djibouti also relies on service industries, including banking, logistics, and tourism. Investments in infrastructure, such as ports, railways, and free trade zones, have positioned Djibouti as a regional hub for commerce and investment.

Politically, Djibouti is a semi-presidential republic. Since independence, the country has experienced political stability, with one dominant political party. The government has focused on promoting social cohesion, economic development, and regional diplomacy. Djibouti hosts military bases from various international partners, contributing to regional security and fostering diplomatic relations.

As Djibouti looks towards the future, it faces challenges such as poverty reduction, job creation, and sustainable development. The government, with the support of international partners, is working on initiatives to diversify the economy, improve education and healthcare, and enhance infrastructure development. Djibouti has also positioned itself as a hub for renewable energy, harnessing its geographical advantages for sustainable power generation.

The history, culture, economy, and politics of Djibouti interweave to form the country’s unique identity. While Djibouti faces various challenges, its strategic location, cultural heritage, and resilient population provide a foundation for its aspirations to achieve stability, economic growth, and a better future for its people.

Types of Companies in Djibouti

Port and logistics companies: Djibouti is strategically located at the entrance to the Red Sea and serves as a key transit point for international trade between Africa, Asia, and Europe. The country is known for its ports and logistics infrastructure, making it an important hub for maritime activities. Companies such as Djibouti Ports and Free Zones Authority (DPFZA) and Doraleh Container Terminal (DCT) are involved in port operations and logistics services.

Free zone companies: Djibouti has established free trade zones to attract foreign investment and promote economic growth. These zones offer various incentives such as tax exemptions and streamlined customs procedures. Companies operating within these free zones engage in manufacturing, assembly, and processing activities. For example, Djibouti International Free Trade Zone (DIFTZ) and Djibouti Free Zone (DFZ) host companies involved in sectors like textiles, electronics, and food processing.

Telecommunications companies: Djibouti’s telecommunications sector has experienced significant growth in recent years. Companies like Djibouti Telecom and Somcable provide telecommunication services, including mobile and internet connectivity, to individuals and businesses in the country. Djibouti Telecom also operates the undersea fiber-optic cable system that connects Djibouti to the global network.

Financial institutions: Djibouti has a number of banks and financial institutions that offer a range of financial services. These include commercial banks, microfinance institutions, and insurance companies. Some notable banks in Djibouti include Banque pour le Commerce et l’Industrie – Djibouti (BCIMR), Banque de Djibouti et du Moyen-Orient (BDME), and Salaam African Bank.

Construction and engineering companies: With ongoing infrastructure development projects in Djibouti, construction and engineering companies play a significant role. These companies are involved in the construction of roads, buildings, ports, and other infrastructure projects. For instance, China Civil Engineering Construction Corporation (CCECC) has been involved in major infrastructure projects in Djibouti, including the construction of ports and railways.

Tourism and hospitality companies: Djibouti’s unique natural attractions, such as its pristine beaches and diverse marine life, have led to a growing tourism sector. Companies in the tourism and hospitality industry offer accommodation, tour services, and recreational activities to visitors. Examples include hotels, resorts, and tour operators like Djibouti Hotels Group and Kudu Travel.

Energy companies: Djibouti has been exploring renewable energy sources to reduce its dependence on imported fossil fuels. Energy companies are involved in projects related to solar power, wind energy, and geothermal energy. Djibouti Energy Company (EDD) is responsible for electricity generation and distribution in the country.

“Our team can provide assistance if you need help registering a company in Djibouti.”

Common Questions

What is the process of company registration in Djibouti?

The process involves several steps, including the submission of required documents and obtaining approvals from relevant authorities.

What are the legal forms of companies that can be registered in Djibouti?

Common legal forms include limited liability companies (SARL), joint-stock companies (SA), and sole proprietorships.

What are the minimum capital requirements for company registration?

The minimum capital requirements vary depending on the type of company. For example, SARLs require a minimum capital of DJF 1 million.

Can foreign nationals register a company in Djibouti?

Yes, foreign nationals can register a company in Djibouti. However, certain restrictions may apply to specific sectors.

Can I register a branch office of a foreign company in Djibouti?

Yes, it is possible to register a branch office of a foreign company in Djibouti. You will need to provide specific documents and meet legal requirements.

What are the documents required for company registration?

The required documents typically include identification documents of shareholders and directors, articles of association, and proof of capital.

Do I need a local partner to register a company in Djibouti?

In most cases, a local partner is not required to register a company in Djibouti. However, some sectors may have specific ownership restrictions.

What is the role of the Djibouti Chamber of Commerce in company registration?

The Djibouti Chamber of Commerce plays a key role in facilitating the registration process and providing information to businesses.

How long does it take to register a company in Djibouti?

The registration process can take several weeks or even months, depending on the type of company and the efficiency of the process.

Can I register my company online?

Yes, Djibouti has an online platform called “Guichet Unique” that allows for online company registration.

What are the registration fees for a company in Djibouti?

Registration fees vary based on the type and size of the company. It is advisable to check with the relevant authorities for the current fee structure.

“Our team can provide assistance if you need help registering a company in Djibouti.”

Is it necessary to have a local office address for company registration?

Yes, a local office address is a requirement for company registration in Djibouti.

Can I change the company name after registration?

Yes, it is possible to change the company name after registration, but certain procedures and approvals may be required.

Is there a need for a business plan during company registration?

A business plan is generally not required during the registration process. However, it may be necessary for specific business activities or when seeking financing.

Can I register a company with a single shareholder?

Yes, you can register a company in Djibouti with a single shareholder.

Can I register a company without a local director?

Yes, it is possible to register a company in Djibouti without a local director. However, at least one director is required.

Are there any tax incentives available for registered companies in Djibouti?

Yes, Djibouti offers various tax incentives to promote investment and economic development. These incentives may vary based on sector and location.

Do I need to obtain any licenses or permits after company registration?

Depending on the nature of your business, you may need to obtain additional licenses or permits from relevant authorities.

Can I register a company with 100% foreign ownership?

In most cases, 100% foreign ownership is allowed for company registration in Djibouti. However, there may be restrictions in certain sectors.

Can I register a company with multiple business activities?

Yes, it is possible to register a company with multiple business activities. You will need to specify the activities in your company’s articles of association.

Are there any restrictions on company names?

Yes, there are restrictions on company names in Djibouti. The name should not be misleading, offensive, or similar to existing registered companies.

Can I register a company with a virtual office address?

Generally, a physical office address is required for company registration. The use of virtual office addresses may have limitations.

Can I register an offshore company in Djibouti?

Djibouti does not offer offshore company registration. It is primarily a location for onshore business activities.

“Our team can provide assistance if you need help registering a company in Djibouti.”

Do I need to hire a lawyer or consultant for company registration?

While it is not mandatory, hiring a lawyer or consultant can help navigate the registration process and ensure compliance with legal requirements.

What is the role of the Ministry of Commerce in company registration?

The Ministry of Commerce oversees the registration process and provides guidance on legal requirements for company registration.

Can I register a company with foreign currency capital?

Yes, it is possible to register a company with foreign currency capital. The capital should be converted to Djiboutian Francs (DJF) at the prevailing exchange rate.

Are there any minimum share capital requirements for joint-stock companies?

Joint-stock companies in Djibouti have specific minimum share capital requirements, which may vary based on the company’s activities.

Can I register a company without physical presence in Djibouti?

While physical presence is generally required for company registration, certain procedures may allow for limited remote participation.

Can I register a non-profit organization in Djibouti?

Yes, it is possible to register non-profit organizations in Djibouti. Different regulations and requirements may apply compared to for-profit companies.

Are there any restrictions on foreign ownership in certain sectors?

Some sectors in Djibouti, such as banking and telecommunications, have specific restrictions on foreign ownership. It is important to check sector-specific regulations.

Can I register a company as a foreign branch in Djibouti?

Yes, foreign companies can establish branch offices in Djibouti. The registration process involves providing necessary documentation and meeting legal requirements.

Can I register a company with a foreign bank account?

It is possible to register a company in Djibouti with a foreign bank account. However, local bank accounts may be required for certain transactions and compliance.

Can I register a company with a foreign company director?

Yes, a company in Djibouti can have a foreign company director. However, at least one director needs to be appointed who is a resident of Djibouti.

What is the role of the tax authorities in company registration?

The tax authorities in Djibouti play a role in the registration process by providing tax identification numbers and ensuring compliance with tax regulations.

Can I register a company with a trade name different from the company name?

It is generally required to use the company’s registered name for business activities. However, a trade name may be used in addition to the company name in some cases.

Can I register a company as a foreign investor without local shareholders?

Yes, it is possible to register a company as a foreign investor without local shareholders. Djibouti allows full foreign ownership in most sectors.

Can I register a company with foreign directors and shareholders?

Yes, you can register a company in Djibouti with foreign directors and shareholders. Djibouti encourages foreign investment and allows foreign ownership.

“Our team can provide assistance if you need help registering a company in Djibouti.”

What are the requirements for hiring local employees after company registration?

After company registration, you will need to comply with labor laws and obtain necessary permits for hiring local employees.

Can I register a company as a microenterprise in Djibouti?

Yes, Djibouti recognizes microenterprises and offers specific benefits and simplified registration procedures for such businesses.

Can I register a company with a different trading name than the registered name?

In Djibouti, it is generally required to use the registered name for business activities. However, you may use a trading name in addition to the registered name.

Can I register a company with a foreign company secretary?

Yes, a company in Djibouti can have a foreign company secretary. However, it is advisable to consult local regulations and legal requirements.

Can I register a company with multiple shareholders and directors?

Yes, you can register a company in Djibouti with multiple shareholders and directors. The number and requirements may vary based on the company type.

Can I register a company with a different business address than the registered address?

In most cases, the registered address should also serve as the business address. However, certain business activities may have separate requirements.

Can I register a company without a physical office in Djibouti?

A physical office is generally required for company registration in Djibouti. However, there may be exceptions or flexibility depending on the business activity.

Can I register a company with a foreign company seal?

Yes, a company in Djibouti can have a foreign company seal. However, it is advisable to consult local regulations and legal requirements.

Can I register a company with a foreign company auditor?

Yes, a company in Djibouti can appoint a foreign company auditor. However, local compliance and reporting requirements must be met.

Can I register a company with foreign language documents?

While certain documents may require translation into the official language (French) of Djibouti, it is possible to register a company with foreign language documents.

Can I register a company as a sole proprietorship in Djibouti?

Yes, it is possible to register a sole proprietorship in Djibouti. However, the registration process and requirements may differ from other company types.

Can I register a company with foreign company articles of association?

Yes, a company in Djibouti can adopt foreign company articles of association. However, compliance with local regulations and legal requirements is necessary.

Can I register a company with foreign shareholders but local directors?

Yes, it is possible to have foreign shareholders and local directors for a company in Djibouti. It is important to comply with local regulations and requirements.

Can I register a company without a local bank account?

While a local bank account is generally required for business operations, it may be possible to register a company initially without a local bank account.

Can I register a company with a foreign company treasurer?

Yes, a company in Djibouti can appoint a foreign company treasurer. However, compliance with local regulations and legal requirements is necessary.

Can I register a company with a foreign company legal advisor?

Yes, a company in Djibouti can engage a foreign company legal advisor. However, local compliance and legal requirements must be met.

Can I register a company with a foreign company representative?

Yes, a company in Djibouti can have a foreign company representative. However, compliance with local regulations and representation requirements is necessary.

Can I register a company with a foreign company accountant?

Yes, a company in Djibouti can appoint a foreign company accountant. However, compliance with local accounting and reporting regulations is necessary.

Major Banks in Djibouti

Banque pour le Commerce et l’Industrie – Djibouti (BCI) Website: http://www.bciod.com/

Banque Djibouti et de Crédit Agricole (BDCA) Website: Not available

Banque de Dépôt et de Crédit de Djibouti (BDCD) Website: Not available

Banque de Djibouti (BD) Website: Not available

Banque Indosuez Mer Rouge (BIMR) Website: Not available

Banque Nationale de Djibouti (BND) Website: Not available

CAC International Bank (CACIB) Website: http://www.cac-international.com/

Commercial Bank of Djibouti (CBD) Website: http://www.cbd.dj/

Dahabshiil Bank International (DBI) Website: http://www.dahabshiilbank.com/

East Africa Bank (EAB) Website: Not available

“Our team can provide assistance if you need to open a bank account in Djibouti.”

The top universities in Djibouti

University of Djibouti

Website: http://www.univ.edu.dj/
Location: Djibouti City
Major Courses: Economics, Law, Computer Science, Education, Languages, Mathematics, and Engineering.

Ecole Supérieure d’Administration et de Gestion (ESAG)

Website: Not available
Location: Djibouti City
Major Courses: Business Administration, Management, Finance, and Accounting.

Institute of Higher Education in Health Sciences (IFSS)

Website: Not available
Location: Djibouti City
Major Courses: Nursing, Midwifery, Medical Laboratory Sciences, Pharmacy, and Public Health.

Université de Djibouti – Campus des métiers de l’électricité et des énergies renouvelables (UDJ-CMER)

Website: Not available
Location: Djibouti City
Major Courses: Electrical Engineering, Renewable Energy, and Sustainable Development.

Institut Supérieur des Sciences de la Santé (ISSS)

Website: Not available
Location: Djibouti City
Major Courses: Medicine, Dentistry, Pharmacy, and Nursing.

Strange or unusual to visitors in Djibouti

Qat Chewing: Qat, a mild stimulant plant, is popular in Djibouti. It is common to see people, predominantly men, chewing qat leaves and socializing in qat houses. This practice may seem unusual to visitors unfamiliar with it.

Dress Code: Djiboutians often dress modestly, especially in more conservative areas. Visitors may find it unusual to see women wearing traditional Islamic clothing, such as the hijab or niqab, and men wearing traditional attire like the macawiis (wraparound skirt) or the traditional Somali sarong.

Cultural Practices: Djibouti has a rich cultural heritage, and visitors may witness traditional practices that might appear strange to them. These can include traditional dances, rituals, and ceremonies that celebrate important events or occasions.

Food Customs: Djiboutian cuisine includes unique dishes such as Fah-Fah (a spicy stew) and Skoudehkaris (rice with meat and vegetables). Visitors may find the flavors and ingredients unfamiliar, especially if they are not accustomed to East African cuisine.

Nomadic Lifestyle: In rural areas, visitors may come across nomadic communities, particularly Afar and Issa tribes. The lifestyle of these communities, living in tents or temporary shelters and relying on livestock for sustenance, may seem unfamiliar to urban-dwelling visitors.

Prayer Calls: Islam is the predominant religion in Djibouti, and the call to prayer (Adhan) is broadcasted through loudspeakers from mosques multiple times a day. Visitors may find the loud and frequent prayer calls unusual, particularly if they are not accustomed to Islamic practices.

Hot Climate: Djibouti experiences extremely hot temperatures, especially during the summer months. Visitors from cooler climates might find it strange or challenging to adapt to the intense heat and arid environment.

“Tips for Newcomers: Adjusting to Life in Djibouti”

Learn the Local Language: While French is the official language of Djibouti, Arabic and Somali are also widely spoken. Learning some basic phrases and greetings in these languages can go a long way in helping you communicate and connect with the local community.

Embrace the Culture: Djibouti has a rich cultural heritage. Take the time to learn about local customs, traditions, and social etiquette. Respect the Islamic values and dress modestly, especially in more conservative areas.

Adapt to the Climate: Djibouti has a hot and arid climate, with temperatures soaring during the summer months. Stay hydrated, dress in lightweight and breathable clothing, and take necessary precautions to protect yourself from the sun.

Explore the Cuisine: Djiboutian cuisine is a fusion of East African, Somali, and Yemeni flavors. Be open to trying new dishes like Fah-Fah, Skoudehkaris, and the traditional flatbread called Injera. Local markets and street food stalls are great places to explore the culinary delights of Djibouti.

Connect with the Expat Community: Djibouti has a diverse expat community. Reach out to other expats through social networks, clubs, and events. They can provide valuable insights, support, and help you navigate your new life in Djibouti.

Embrace the Outdoor Lifestyle: Djibouti offers unique outdoor experiences. Explore the stunning beaches, go snorkeling or diving in the Red Sea, and visit national parks and wildlife reserves. Take advantage of the natural beauty and enjoy activities like hiking, camping, and desert excursions.

Respect Local Customs and Laws: Familiarize yourself with the local laws, regulations, and customs of Djibouti. Be mindful of cultural sensitivities, especially regarding religious practices and social norms. Observe local customs and traditions, such as dressing modestly in religious sites and respecting prayer times.

Seek Local Advice: Locals can provide valuable insights and guidance on navigating daily life in Djibouti. Engage in conversations, ask for recommendations, and seek advice from trusted locals to help you adapt more smoothly to the local way of life.

Stay Safe and Health-Conscious: Djibouti, like any other place, has its own safety considerations. Be aware of your surroundings, follow safety guidelines, and take precautions to protect your health. Stay updated on vaccinations, drink bottled water, and practice good hygiene.

Maintain a Positive Attitude: Moving to a new country can be challenging, but maintaining a positive attitude and embracing the adventure will make your transition smoother. Stay open-minded, be patient, and enjoy the unique experiences and opportunities that Djibouti has to offer.