Investing in Rwanda can be a lucrative venture, but it’s important to understand the process of investment registration and the benefits of obtaining an investment certificate.
To register an investment in Rwanda, you’ll need to submit an application to the Rwanda Development Board (RDB). The application will include details about your business, such as its name, address, and proposed activities. You’ll also need to provide information about the investment, such as the amount of capital you plan to invest and the expected return on investment, organizational structure and employment considerations of number of locals and foreign employees you are planning in the five years.
Once your application is approved, you’ll receive an investment certificate from the RDB. This certificate serves as proof that your investment is registered with the government and that you’re entitled to certain benefits.
BENEFITS OF REGISTERING INVESTMENT IN RWANDA
One of the main benefits of obtaining an investment certificate is that it provides protection for your investment. The Rwandan government offers guarantees against expropriation, nationalization, and other forms of interference with your investment. This means that you can invest with confidence, knowing that your investment is protected by law.
Another benefit of the investment certificate is that it provides access to a range of incentives and exemptions. For example, investors with an investment certificate are exempt from paying taxes on imported capital goods for their business. They may also be eligible for tax holidays and reduced tax rates on profits.
Investors with an investment certificate are also given priority in certain sectors of the economy. This means that they may have access to government contracts and other business opportunities before non-certified investors.
N.B: WHAT DO YOU NEED TO KNOW UPON REGISTERING INVESTMENT?
- Investment project proposal (business plan) should be clarifying the business industry and activities to be carried out and stating exact location(s). If one project is going to be in different locations and different activities, you need to mention them otherwise you will have to apply for Investment expansion which is also a 500 USD if new locations or new activities (even if it might be in the same business industry as you registered before) are added after.
- Different investment proposals, should get different investment certificates.
- The investment certificate is valid for 5 years from the date of its issuance. Investment Evaluation is made by RDB’s investment department after 3 years.
- If evaluation finds that your registered investment has not been in operations for 3 years, the property/Land will be fully acquired by the Government and your business won’t have any ownership rights over it.
Checklist of conformity for land acquisition under investment:
- Letter of request for land title transfer addressed to CEO of RDB
- Copy of investment Registration certificate not exceeding 5 years(otherwise renewing it before applying for the conformity letter)
- Written and notarized expression of intent to transact in land by both seller and buyer.
- Copies of land titles of lands to be transacted
- Business Plan
- Construction permit OR Letter from city of Kigali/ District confirming that the project fits in the master plan. (N.B: You need to write a letter addressed to the Mayor of The City of Kigali or District in other provinces requesting a confirmation letter)
- Letter from the regulatory body for the regulated sectors(if any) e.g: petrol station installation license from RURA/ For hospitals or clinics need confirmation letter from Ministry of health,etc…
- Any other information as shall be required by RDB
Therefore, registering your business in Rwanda and obtaining an investment certificate can provide a range of benefits and protections. It’s important to understand the process of registration and the benefits of the certificate before making any investments in Rwanda.
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