Corporate Law at Djibouti
Corporate law in Djibouti is influenced by both French civil law and local legal adaptations. Here's a general overview:
🇩🇯 Corporate Law in Djibouti – Overview
1. Legal Framework
Djibouti's legal system is based on French civil law.
Corporate entities and business activities are governed by the Commercial Code of Djibouti.
Djibouti is also a member of OHADA (Organization for the Harmonization of Business Law in Africa), which influences its corporate laws significantly.
2. Types of Business Entities
The most common business structures include:
Société à Responsabilité Limitée (SARL) – Limited Liability Company.
Société Anonyme (SA) – Public Limited Company.
Société en Nom Collectif (SNC) – General Partnership.
Branch or Representative Office – For foreign companies.
3. Company Registration Process
Register with the Djibouti Chamber of Commerce.
Obtain a business license from the Ministry of Trade.
Register for tax identification.
Open a local bank account.
Comply with labor and social security regulations.
4. Corporate Governance
Companies must have a memorandum and articles of association.
Annual general meetings are required.
Directors and shareholders must be appointed and comply with statutory obligations.
Financial reporting and bookkeeping in line with OHADA standards are mandatory.
5. Foreign Investment
Djibouti allows 100% foreign ownership in many sectors.
Strategic sectors like ports and telecommunications may be subject to regulation or partnership requirements.
Investment incentives include tax holidays and duty exemptions in free zones.
6. Dispute Resolution
Commercial disputes are handled by local commercial courts.
Djibouti has arbitration facilities, and as an OHADA member, it recognizes the Common Court of Justice and Arbitration (CCJA).
The country is also a member of the International Centre for Settlement of Investment Disputes (ICSID).
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