Starting a business in Somalia: foreigner's guide (2026)

Foreign investors may own 100% of a company and may incorporate a single-director, fully foreign-owned local entity without a local partner; there is no formal 'negative list' of sectors closed to foreigners, though agriculture, livestock, fishing, minerals and industry are prioritized for incentives.

There is no minimum capital requirement to start or register a company in Somalia under the Companies Law regime.

The eBusiness.gov.so system (launched March 2022 with IFC/World Bank support) cut registration to about three online steps from nine, with the incorporation certificate issued within one working day and an average overall turnaround of around four days.

Reserve/verify the company name, submit incorporation documents to the Company Registrar at the Ministry of Commerce & Industry and pay fees to receive the registration certificate, then obtain a Tax Identification Number (TIN); foreign companies receive a separate Certificate of Registration of a Foreign Company.

Business licenses must be renewed yearly, with renewal costing roughly 50% of the original registration fee.

Somalia's federal structure means procedures vary between Mogadishu and member states, and weak rule of law, security risks, and inconsistent application of foreign-investment and capital-repatriation guarantees undermine the open legal framework; Somalia ranked 190th of 190 in the World Bank's Doing Business 2020.