Business & Enterprise

Foreign Investment

Foreign investor – Any foreign juridical or physical person

Legal Frame work
• The Companies Law of Somaliland (Law No. 25/2004)
• Promotion, Protection and Guarantees of Foreign Investment Law (Law No. 29/2004(& 2008)

Foreign investment registration procedure

• Pick an application form for Approval and registration from the Foreign Investment Promotion Office at the Ministry of Trade
• Complete the form
• Mail it or hand it to the Foreign Investment Board, within the Ministry of Trade
• The Board is the supreme decision maker. It consists of:
• DGs of the Ministries of Planning, Foreign Affairs, Finance, Commerce, Industry, Health & Labour, Central bank, Chamber of Commerce.
• The chairman of the Board is the Director General (DG) of the Ministry of Commerce
• The Board takes decisions by simple majority vote

Registration time (time it takes to register)
• Within 60 days of receipt of application, the Board shall notify the applicant
• If application is approved the Board shall issue ‘Certificate of Foreign Investment in an Approved Enterprise’ as soon as the investor has affected the transfer of assets
• The certificate shall be valid for 18 months within which the foreign investor must invest
• If investor wants to make additional investment, investor must apply and get approval again Foreign investment forms
• Convertible currency
• Machinery, equipment , material
• Patent rights, trade marks
• Technical studies and documentation

Guarantee for Foreign investment
• Foreign investment enterprises shall receive the same favourable treatment as domestic enterprise
• Foreign investment shall not be expropriated except where public interest cannot be satisfied other than expropriation, in which case, compensation shall be made