Capital:   Asmara

Languages: Tigrinya, Arabic, English

Currency:  Nakfa (ERN)

 

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Eritrea 

 

Eritrea, a small country located in the Horn of Africa, has a rich and complex history, diverse culture, evolving economy, and unique political landscape. From ancient civilizations to colonization, independence struggles, and post-independence challenges, Eritrea’s historical trajectory has significantly shaped its identity and influenced its current realities.

The history of Eritrea dates back thousands of years and is closely linked to its strategic location along the Red Sea coast. The region was inhabited by various indigenous tribes and witnessed the rise and fall of powerful kingdoms, such as the Aksumite Empire and the Kingdom of Medri Bahri. European colonization began in the late 19th century, with Eritrea coming under Italian control. It later experienced British administration before a federation with Ethiopia and ultimately a 30-year war for independence.

Eritrean culture is diverse and reflects the ethnic and linguistic plurality of its population. The country is home to numerous ethnic groups, including the Tigrinya, Tigre, Afar, and Saho, each with its own distinct language, traditions, and customs. Eritrean music, dance, cuisine, and festivals contribute to the vibrant cultural heritage of the country. Orthodox Christianity, Sunni Islam, and other religions coexist, further enriching the cultural fabric of Eritrea.

The economy of Eritrea is primarily based on agriculture, industry, and mining. The country’s fertile lands support the cultivation of crops such as sorghum, millet, and vegetables. Eritrea is also known for its textile, food processing, and beverage industries. Additionally, the mining sector plays a significant role, with Eritrea having reserves of gold, copper, zinc, and other minerals. The government has been focusing on attracting foreign investment and promoting economic diversification.

Politically, Eritrea is a one-party state, with the People’s Front for Democracy and Justice (PFDJ) as the ruling party. The country gained independence from Ethiopia in 1993 following a long and protracted armed struggle. However, Eritrea has faced challenges related to political freedoms, human rights, and press freedom. Regional dynamics and border disputes with Ethiopia have also influenced Eritrea’s political landscape.

As Eritrea looks toward the future, it faces various challenges, including poverty, limited access to basic services, and the need for infrastructure development. The government, in collaboration with international partners, is working on initiatives to promote economic growth, improve education and healthcare, and enhance governance and human rights. Eritrea is also striving to strengthen its regional and international relations to promote peace and stability.

The history, culture, economy, and politics of Eritrea are intricately intertwined, shaping the country’s unique character. While challenges exist, the cultural heritage, resilient population, and natural resources provide a foundation for Eritrea’s aspirations to achieve sustainable development, social progress, and a better future for its people. Eritrea’s journey towards inclusive growth and political openness will be instrumental in shaping its path forward.

 

Types of Companies in Eritrea

 

Agricultural Companies: Eritrea’s economy heavily relies on agriculture, and there are companies involved in farming, livestock production, and agribusiness. These companies may be engaged in the cultivation of crops such as sorghum, millet, maize, sesame, and cotton.

Mining Companies: Eritrea has significant mineral resources, including gold, copper, zinc, and potash. Several mining companies, both local and foreign, are involved in exploration, extraction, and processing of these minerals.

Construction Companies: As the country continues to develop its infrastructure, construction companies play a crucial role. They are involved in building roads, bridges, dams, residential and commercial buildings, and other infrastructure projects.

Manufacturing Companies: While manufacturing is still relatively limited in Eritrea, there are companies involved in small-scale manufacturing activities such as food processing, textile production, and assembly of consumer goods.

Service Companies: The service sector in Eritrea includes various types of companies providing services such as banking and finance, telecommunications, hospitality, transportation, logistics, and retail. These companies cater to the needs of the local population and contribute to the country’s economic growth.

Tourism and Hospitality Companies: Eritrea has potential as a tourist destination due to its rich history, cultural heritage, and natural attractions. Therefore, there are companies involved in tourism, hospitality, and related services such as hotels, resorts, tour operators, and travel agencies.

Financial Institutions: Eritrea has a banking sector that includes commercial banks, microfinance institutions, and other financial service providers. These companies offer banking services, loans, savings accounts, and other financial products to individuals and businesses.

Renewable Energy Companies: Eritrea has been making efforts to develop its renewable energy sector. There are companies involved in renewable energy projects such as solar power, wind energy, and geothermal energy.

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

 

Common Questions

 

What are the legal requirements for registering a company in Eritrea?

To register a company in Eritrea, you need to fulfill various legal requirements, including completing the necessary application forms, submitting required documents, and complying with the provisions of the Companies Act.

What types of business entities can be registered in Eritrea?

Common types of business entities that can be registered in Eritrea include sole proprietorships, partnerships, private limited companies, and public limited companies.

What is the minimum capital requirement for company registration in Eritrea?

There is no specific minimum capital requirement for company registration in Eritrea. However, it’s important to provide sufficient capital for the intended business activities.

What is the process for reserving a company name in Eritrea?

To reserve a company name in Eritrea, you need to submit a name reservation application to the Ministry of Trade and Industry. The name should not be similar to existing company names and should comply with the naming guidelines.

Can a foreigner or non-resident register a company in Eritrea?

Yes, foreigners or non-residents can register a company in Eritrea. However, there are restrictions and regulations related to foreign investment and business ownership.

Is it mandatory to have a local partner or shareholder in Eritrea?

Eritrea has regulations regarding foreign ownership, and it may be necessary to have a local partner or shareholder in certain sectors. Consultation with relevant authorities or legal experts is recommended.

What are the steps involved in the company registration process?

The company registration process typically involves the following steps: name reservation, drafting and notarization of the company’s articles of association, submission of required documents to the relevant authority, payment of registration fees, and issuance of the certificate of incorporation.

What documents are required for company registration in Eritrea?

The specific documents required may vary depending on the type of company being registered. Generally, you will need identification documents of shareholders/directors, articles of association, proof of address for the registered office, and other relevant supporting documents.

Can I register a company online in Eritrea?

As of my knowledge cutoff in September 2021, online registration services were not widely available in Eritrea. The registration process usually involves submitting physical documents to the relevant government authority.

Is it necessary to engage a local lawyer or agent for company registration?

Engaging a local lawyer or agent is not mandatory but can be beneficial to navigate the registration process and ensure compliance with local laws and regulations.

What is the approximate time frame for company registration in Eritrea?

The time frame for company registration can vary depending on various factors, including the type of company and the efficiency of the registration process. It is advisable to allow several weeks to complete the registration process.

What are the registration fees for a company in Eritrea?

The registration fees for a company in Eritrea can vary depending on the type of company and the authorized share capital. The fees are determined by the relevant authorities.

Can I change the company name after registration?

Changing the company name after registration is possible but involves a formal process and may require approval from the Ministry of Trade and Industry.

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

 

Is it necessary to have a physical office address in Eritrea for company registration?

Yes, it is necessary to provide a physical office address in Eritrea for company registration. A registered office is required to receive official correspondence.

Can I use a virtual office or shared workspace as a registered office address?

The use of virtual offices or shared workspaces as registered office addresses may not be widely accepted in Eritrea. It’s advisable to consult with the relevant authorities or legal experts to confirm the acceptability of such arrangements.

Are there any sector-specific requirements for company registration?

Certain sectors in Eritrea, such as banking, insurance, mining, and telecommunications, may have specific requirements and regulations that need to be fulfilled for company registration. Consultation with relevant authorities or legal experts is recommended.

What are the tax obligations for registered companies in Eritrea?

Registered companies in Eritrea are subject to various tax obligations, including corporate income tax, value-added tax (VAT), and other applicable taxes. It is important to comply with the tax laws and regulations of Eritrea.

Is it mandatory to have a local bank account for a registered company in Eritrea?

Having a local bank account is generally advisable for operational convenience and compliance with financial regulations in Eritrea. Consultation with banks in Eritrea can provide specific guidance on account opening procedures.

Can I register a foreign branch or subsidiary in Eritrea?

Yes, it is possible to register a foreign branch or subsidiary in Eritrea. The registration process and requirements may differ from those of locally owned companies.

Are there any incentives or benefits for foreign investors in Eritrea?

Eritrea has its own regulations and policies regarding foreign investment. There may be incentives or benefits available for foreign investors in certain sectors. It is recommended to consult with relevant authorities or legal experts for detailed information.

Is there a requirement to appoint local directors or officers?

Eritrea may have requirements regarding the appointment of local directors or officers in certain sectors. It is advisable to consult with relevant authorities or legal experts to understand the specific requirements for your business.

Can I relocate my existing company to Eritrea?

Relocating an existing company to Eritrea may be possible, but it can involve complex processes and compliance with local laws and regulations. Consultation with relevant authorities or legal experts is essential in such cases.

What are the ongoing compliance requirements after company registration?

After company registration, you will need to fulfill ongoing compliance requirements, such as filing annual financial statements, tax returns, and maintaining proper records of company activities. Compliance requirements may vary based on the type of company.

Are there any restrictions on foreign ownership in certain sectors?

Eritrea has regulations and restrictions on foreign ownership in certain sectors, such as mining and telecommunications. These restrictions may vary, and consultation with relevant authorities or legal experts is recommended.

Can I register a non-profit organization or NGO in Eritrea?

Yes, it is possible to register a non-profit organization or NGO in Eritrea. However, the registration process and requirements for such entities may differ from those of for-profit companies.

Is there a specific law governing company registration in Eritrea?

The Companies Act of Eritrea governs the registration and operation of companies in the country. It provides the legal framework for various aspects of company formation and management.

Can I register a company with foreign directors only?

Eritrea may have requirements regarding the appointment of local directors or officers. It is advisable to consult with relevant authorities or legal experts to understand the specific requirements for your business.

What are the requirements for hiring employees after company registration?

After company registration, you need to fulfill requirements related to hiring employees, such as registering with the National Insurance Corporation and complying with labor laws, including obtaining work permits and paying the applicable minimum wages.

Can I register a company with a single shareholder and director?

Yes, it is possible to register a company in Eritrea with a single shareholder and director. However, there may be certain requirements and limitations, and consultation with relevant authorities or legal experts is recommended.

Are there any specific regulations for foreign companies operating in Eritrea?

Foreign companies operating in Eritrea are subject to local laws and regulations, and there may be specific requirements or restrictions applicable to them. Consultation with relevant authorities or legal experts is advisable.

Can I register an online business or e-commerce company in Eritrea?

Registering an online business or e-commerce company in Eritrea is possible. However, specific regulations and requirements related to online businesses may apply. Consultation with relevant authorities or legal experts is recommended.

What is the process for company name search and reservation?

The process for company name search and reservation involves submitting a name reservation application to the Ministry of Trade and Industry. The name should be unique and comply with the naming guidelines.

Can I register a company without visiting Eritrea?

While it may be possible to register a company without visiting Eritrea, certain aspects of the registration process, such as submitting physical documents, may require local presence or the assistance of a local representative.

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

 

Can I register a company with a foreign address?

Generally, it is advisable to have a local address for company registration in Eritrea. However, consultation with relevant authorities or legal experts can provide specific guidance on using a foreign address.

Are there any specific requirements for environmental compliance?

Certain business activities in Eritrea, such as mining or industrial operations, may have specific requirements for environmental compliance. It is advisable to consult with relevant authorities to understand the specific regulations and obligations.

Is there a requirement for company audits in Eritrea?

Companies in Eritrea may be required to conduct annual audits and file audited financial statements. The specific requirements may depend on the type and size of the company.

What are the restrictions on company names in Eritrea?

Company names in Eritrea should not be similar to existing company names, should not be misleading, and should comply with the naming guidelines provided by the Ministry of Trade and Industry.

Can I register a company with a foreign currency capital contribution?

It is generally advisable to contribute the capital in Eritrean Nakfa (ERN) when registering a company in Eritrea. Consultation with relevant authorities or legal experts can provide specific guidance on currency-related matters.

Is there a requirement for a minimum number of shareholders or directors?

The Companies Act of Eritrea does not specify a minimum number of shareholders or directors for companies. However, practical considerations and the company’s structure may influence the number of shareholders and directors.

Are there any restrictions on the business activities of registered companies?

Certain business activities, such as those related to national security or public interest, may be subject to restrictions or additional regulations in Eritrea. Consultation with relevant authorities or legal experts is recommended to understand specific restrictions, if any.

Can I register a company with a foreign company as a shareholder?

Registering a company with a foreign company as a shareholder may be possible in Eritrea. The specific requirements and regulations may vary, and consultation with relevant authorities or legal experts is recommended.

Are there any incentives for companies operating in specific sectors?

Eritrea may provide incentives for companies operating in specific sectors, such as agriculture, manufacturing, or renewable energy. Consultation with relevant authorities or legal experts can provide detailed information on sector-specific incentives.

Can I register a company as a foreign investor in a special economic zone?

Eritrea has established Special Economic Zones (SEZs) to attract foreign investment. It may be possible to register a company as a foreign investor in an SEZ, subject to the specific regulations and requirements of the respective zone.

What are the reporting requirements for registered companies?

Registered companies in Eritrea are generally required to submit annual financial statements, tax returns, and other relevant reports to the appropriate government authorities. Compliance requirements may vary based on the type of company and sector.

Can I register a company in Eritrea for trading purposes?

Yes, it is possible to register a company in Eritrea for trading purposes. The registration process and requirements may vary depending on the type of trading activities and the specific regulations that apply.

Is there a requirement for intellectual property registration?

Intellectual property registration is recommended to protect trademarks, patents, and copyrights. The Eritrean Intellectual Property Office handles intellectual property registration in the country.

Can I register a company in Eritrea for export/import activities?

Yes, it is possible to register a company in Eritrea for export/import activities. Certain licenses and permits may be required, depending on the nature of the goods being traded. Consultation with relevant authorities or legal experts is advised.

What are the regulations regarding hiring foreign employees in registered companies?

Hiring foreign employees in registered companies may require obtaining work permits and complying with immigration regulations. It is advisable to consult with relevant authorities or legal experts for detailed information on hiring foreign employees.

Can I register a company with a non-Eritrean as a majority shareholder?

Eritrea may have regulations and restrictions on foreign ownership in certain sectors. It is advisable to consult with relevant authorities or legal experts to understand the specific requirements for your business and the maximum permissible foreign ownership.

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

 

Are there any restrictions on repatriation of profits or dividends for registered companies?

Eritrea has regulations and procedures regarding the repatriation of profits or dividends earned by registered companies. It is advisable to consult with relevant authorities or legal experts to understand the specific requirements and processes.

Can I register a company as a foreign investor in the agricultural sector?

Foreign investment in the agricultural sector of Eritrea may be possible. However, specific regulations and requirements may apply. Consultation with relevant authorities or legal experts is recommended to understand the specific regulations and opportunities.

Are there any restrictions on advertising and marketing for registered companies?

Advertising and marketing activities in Eritrea are subject to regulations, and there may be specific restrictions or requirements. It is advisable to comply with relevant advertising and marketing regulations while conducting business activities.

Can I register a company in Eritrea for real estate development?

Registering a company in Eritrea for real estate development is possible. However, specific regulations and requirements may apply. Consultation with relevant authorities or legal experts is recommended to understand the specific regulations and processes.

Can I register a company in Eritrea for providing professional services?

Yes, it is possible to register a company in Eritrea for providing professional services. The registration process and requirements may vary depending on the specific professional service and the regulations that apply.

Is it possible to register a company in Eritrea without Eritrean partners or shareholders?

While it may be possible to register a company without Eritrean partners or shareholders in certain sectors, there may be restrictions and regulations on foreign ownership. Consultation with relevant authorities or legal experts is recommended to understand the specific requirements for your business.

 

Major Banks in Eritrea

 

Commercial Bank of Eritrea (CBE) – www.cbe.com.er

Housing and Commerce Bank of Eritrea (HCB) – No website available

Eritrean Investment and Development Bank (EIDB) – No website available

Bank of Eritrea – No website available

Cooperative and Credit Bank of Eritrea (CCBE) – No website available

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

 

The top universities in Eritrea

 

University of Asmara

• • Website: N/A (Note: The University of Asmara was the oldest and most prestigious university in Eritrea. However, it was closed in 2006 and replaced by other institutions.)
  • Location: Asmara
  • Major Courses: Arts, Humanities, Social Sciences

Eritrea Institute of Technology (EIT)

• • Website: N/A (Note: The Eritrea Institute of Technology is a leading technical institute in the country. It is a part of the Orotta School Complex.)
  • Location: Mai Nefhi, near Asmara
  • Major Courses: Engineering, Technology, Sciences

Hamelmalo Agricultural College (HAC)

• • Website: N/A (Note: Hamelmalo Agricultural College is a renowned agricultural institution in Eritrea.)
  • Location: Hamelmalo
  • Major Courses: Agriculture, Agribusiness, Agricultural Engineering

College of Marine Science and Technology

• • Website: N/A
  • Location: Massawa
  • Major Courses: Marine Science, Marine Technology, Fisheries

“If you need assistance registering for college or university, our team is here to help.”

 

Strange or unusual to visitors in Eritrea

 

Coffee Ceremony: Eritreans have a strong coffee culture, and it is customary to participate in coffee ceremonies. These ceremonies can be lengthy and involve roasting the coffee beans, grinding them, and brewing the coffee in a traditional clay pot called a jebena. Visitors may find the time and rituals involved in the coffee ceremony to be unique and different from their own coffee-drinking customs.

Greetings and Handshakes: Eritreans often greet each other with handshakes, and it is common for people to hold hands for an extended period while conversing. This physical contact may be different from the greetings in some other cultures where handshakes are brief.

Cultural Dress: Eritrea has a diverse range of ethnic groups, each with its traditional attire. Visitors may find it interesting to see the variety of colorful and distinctive clothing styles worn by different communities.

Time Perception: Eritreans may have a more relaxed approach to time compared to some other cultures, and punctuality may not be as strictly adhered to. Visitors may find that schedules and appointments may be more fluid and subject to delays or changes.

Food Customs: Eritrean cuisine features unique dishes such as injera (a spongy flatbread) served with a variety of stews and spicy sauces. It is customary to eat with your hands, using injera to scoop up the food. This dining style may be different for visitors accustomed to using cutlery.

Cultural Etiquette: Eritreans place importance on respect and hospitality. Visitors may experience a warm and welcoming atmosphere, with locals often going out of their way to assist and engage with visitors. It is customary to accept offers of hospitality, such as sharing a meal or a cup of coffee, as a sign of goodwill.

Language and Communication: While the official language of Eritrea is Tigrinya, English and Arabic are also widely spoken. Visitors who are not familiar with these languages may find communication challenging in certain situations, particularly in more remote areas where English proficiency may be limited.

 

“Tips for Newcomers: Adjusting to Life in Eritrea ”

 

Learn the Local Language: While English is widely spoken in Eritrea, learning a few basic phrases in Tigrinya or Arabic can go a long way in facilitating communication and building connections with the local community. Consider taking language classes or using language learning apps to improve your language skills.

Embrace the Culture: Eritrea has a rich cultural heritage. Take the time to learn about the customs, traditions, and etiquette of the local people. Show respect for their customs, dress modestly when appropriate, and be open to trying local foods and participating in cultural celebrations.

Connect with the Community: Eritreans are known for their warm hospitality. Take the initiative to connect with locals, make new friends, and build relationships. Engage in community events, join social or hobby groups, or volunteer with local organizations to meet like-minded individuals and immerse yourself in the local community.

Be Open to New Experiences: Living in a new country offers opportunities for personal growth and exploration. Be open to trying new experiences, whether it’s exploring different regions of Eritrea, participating in local festivals, or trying new foods. Embrace the adventure and be willing to step out of your comfort zone.

Understand the Local Laws and Regulations: Familiarize yourself with the laws and regulations of Eritrea to ensure that you stay within the legal boundaries. Be aware of cultural sensitivities, dress modestly in public places, and respect local customs. If you have any questions or concerns, seek guidance from local authorities or expatriate communities.

Establish a Support System: Building a support system is crucial when adjusting to a new country. Connect with other expatriates, join online forums or social media groups, and seek out resources that cater to newcomers. They can provide valuable advice, support, and a sense of belonging.

Take Care of Your Well-being: Moving to a new country can be emotionally and mentally demanding. Prioritize self-care and well-being by maintaining a balanced lifestyle. Engage in activities that bring you joy, exercise regularly, and find ways to manage stress. Seek out healthcare services and insurance coverage to ensure your well-being.

Explore the Country: Eritrea offers a diverse range of landscapes, historical sites, and natural beauty. Take the time to explore the country, visit national parks, ancient ruins, and coastal areas. Traveling within Eritrea will not only broaden your horizons but also deepen your understanding of the country and its people.

 

Top recruitment agencies in Eritrea

 

People First Consultancy (PFC)

• • Website: www.peoplefirstconsultancy.com

Global Engineering and Construction (GEC)

• • Website: N/A

Bisha Mining Share Company (BMSC)

• • Website: N/A

Tesfanews Human Resources (THR)

• • Website: N/A

Eritrea Job Center

• • Website: www.eritreajobcenter.com

 

Necessary phone numbers in Eritrea

 

Emergency Services:

• • Police Emergency: 119
  • Ambulance Service: 116
  • Fire Department: 118

Hospitals and Medical Services:

• • Asmara Central Hospital: +291 1 122112
  • Halibet Hospital: +291 1 186444
  • Orotta National Referral Hospital: +291 1 185866

Transportation:

• • Eritrean Airlines (Asmara International Airport): +291 1 181150
  • Eritrean Railways Corporation: +291 1 124240

Tourism:

• • Ministry of Tourism: +291 1 118349
  • Eritrean Tourism Services Association: +291 1 185852

Embassy and Consulate Contacts:

• • Ministry of Foreign Affairs: +291 1 120000
  • U.S. Embassy in Asmara: +291 1 120004
  • UK Embassy in Asmara: +291 1 182000
  • Canadian Embassy in Asmara: +291 1 181000