Company Incorporate in Afghanistan – Here’s All You Need to Know About it
Afghanistan, though not too popular up to this time, has been slowly getting noticed more and more in recent years. Its strategic position with quick access to countries like India, China, Kazakhstan, and Pakistan, has been a key point for foreign investors to recognize its potential. Though Afghanistan is not very friendly in terms of land, – it consists of mostly mountainous regions – it has some very attractive prospects for investors who have to company incorporate in Afghanistan.
Tax rates in Afghanistan are very low, around 20% only for LLC’s. VAT rates are also very less, making Afghanistan the 63rd country in the world in corporation tax rates and 46th in VAT rates.
Overall, taxes in Afghanistan are not complex. Afghanistan issues a tax on the total wealth you possess within their territory. There are also inheritance taxes levied on an estate. Other than these, there are no other taxes to burden an investor.
We give you all the essential details regarding doing business in Afghanistan.
Company Incorporate in Afghanistan – The Details
If you are a foreign investor looking to Company Incorporate in Afghanistan, you need to first select the jurisdiction in which you would like to do so. Each jurisdiction has a different legal code.
There are four types of companies you can incorporate in Afghanistan:
- Sole proprietorship
You should first register your details with the Afghanistan Central Business Registry (ACBR) that is within the Ministry of Commerce and Industry (MoCI).
Registration with the ACBR takes a very short time. You can Company Incorporate in Afghanistan with them within three hours, provided you have all the relevant documents with you. Documents include approvals from the Ministry of Justice (MoJ), the Ministry of Finance (MoF) and the Commercial Court.
The fees for registration are very low. Once you register, you will get a Tax Identification Number (TIN). You will then have to publish the name and details of your company in their official newspaper. You must also submit a letter from a local licensing agency. These agencies also double up as your local agent. They charge a flat fee. Availing the services of a local agent will help you to set up your business successfully and also go through all the procedures in a hassle-free manner.
Setting Up a Private Limited Company in Afghanistan
The most common type of Company Incorporate in Afghanistan is LLC. The average time for you to incorporate your company is about 7 weeks. You can choose any type of currency for your consideration, the most popular being AFN and USD.
If in the future, you wish to change your jurisdiction or the type of your company, you can do so easily. You will have to undergo certain procedures to include the new legal code, but nothing too difficult.
Afghan law requires a company to have at least 1 shareholder. You can be the shareholder and the sole owner of your LLC too. You can also have corporate shareholders, that is, other legal entities as shareholders. These individual or corporate shareholders could be of any nationality. You should hold an annual meeting of all shareholders and submit the details to the ACBR.
A company should have at least 1 director. You may have corporate directors too. The details of your board of directors are not revealed anywhere publicly. Thus, your directors are insured the utmost privacy.
You are required to provide an address where legal correspondence may be delivered. This address could be of a legal agency. Legal agencies provide this service in exchange for a yearly fee. Your company is required to have a company secretary.
Afghan law also requires companies to submit their yearly accounts for auditing. There may be audits conducted in between a fiscal year too.
We will help you through the process in case you wish to Company Incorporate in Afghanistan. For more information and guidance to Company Incorporate in Afghanistan, contact us at 3E Accounting Indonesia. We will help you with all aspects of incorporation, whether LLC or others.