Business Structures in Rwanda

Choose the Right Entity Type for Your Investment Goals

Choosing the right legal structure for your business is a key decision that impacts taxation, liability, ownership, and long-term flexibility. Rwanda offers several options for local and foreign investors, each tailored to different business needs.

Factors to Consider When Choosing a Structure:

Sole Proprietorship

This is the simplest form of business, owned and operated by one person. It’s ideal for small-scale entrepreneurs and has fewer compliance requirements. However, the owner bears full liability.

Limited Company (Ltd)

The most popular structure for SMEs in Rwanda. It offers limited liability protection to shareholders, flexible ownership, and is relatively simple to set up. An LLC can have between 1–100 shareholders.

Public Company (PLC)

Suitable for largebusinesses seeking to raise capital from the public through shares. This structure has stricter governance and reporting obligations and requires a minimum of 7 shareholders.

Branch Office

Foreign companies can register a branch to operate in Rwanda without incorporating a separate legal entity. This allows centralized control but the parent company is liable for branch obligations.

Subsidiary Company

A foreign investor can also choose to register a local company as a subsidiary. This provides more autonomy and local legal identity, with liability limited to the subsidiary’s assets.

Partnership

Two or more individuals can form a general or limited partnership. Liability and tax obligations depend on the partnership type.

Sokrab Advisory

helps you assess your business needs and register the right structure in compliance with Rwandan law.

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