Reasons for Choosing to Register Company in Afghanistan
Afghanistan is a country many people are familiar with because of the many political events that occurred there recently. This is especially true about the changes in government leadership.
However, you may want to take a second look at Afghanistan because it has the potential to become an economic powerhouse. The country’s natural resources, such as abundant oil and gas, justify investors’ decision to register company in Afghanistan.
Industries Where You Could Register Company in Afghanistan
The poor performance of Afghanistan economically is due mainly to the political upheavals it underwent. But you may want to check which industries seem to have the potential for foreign investors. Some of these are:
- Construction (currently believed to be the biggest Afghan industry)
- Agriculture (particularly high-quality saffron)
- Mining for mineral deposits (such as precious and semi-precious stones, marble, lead, sulfur, barite, salt, zinc, gold, chromite, uranium, and lithium)
Afghanistan also has some “soft industries,” such as tourism. Before the onset of violence within the country, Afghanistan was well known for its many scenic sights. This attracted thousands of tourists. Since Afghanistan seems to be quite stable now, tourists may want to visit again. Tourism is appealing, especially when you consider how foreigners appreciate Afghan culture.
Advantages of Investors Who Register Company in Afghanistan
Anyone who wants to register company in Afghanistan may be pleased that foreigners are allowed 100% ownership of their companies. You will need just one Director and one local or foreign shareholder to start with. You don’t have to put up a minimum share of capital. (The exception is for large projects being monitored by the Ministry of Industry and Commerce).
Foreign investors from different partner countries may feel encouraged to set up shop within Afghanistan. This is because the country is located within two major markets, namely Russia and China. The government is also in talks with China, India, and the USA for trade and investment agreements. You have great timing if you can venture into Afghanistan right now, while others are still hesitating.
Register Company in Afghanistan While Government Is Fixing the Country
Despite the past political problems, Afghanistan is trying to make a major leap into international business. For example, the government is searching for foreign investors who want to support infrastructure development. Some infrastructure projects it is focusing on are:
- Electricity networks
- National Rail Network
Many years of war have made it difficult for Afghanistan to recover. But you can register company in Afghanistan if this represents a challenge and a business opportunity for you.
Another way the Afghan government is reviving entrepreneurship is by permitting investors to secure a single business license only. This license is good for three years of business operation. Foreign investors will not be charged the following:
- Payroll taxes
- Transfer taxes
- Property taxes
- Excise taxes
The corporate tax rate for companies maxes out at 20%.
How to Register Company in Afghanistan
If you do choose to register company in Afghanistan, be prepared for the long incorporation process of seven weeks. You will be required to invest $30,650 to set up the business. You will also need to acquire a specific location within the country for the company office.
It isn’t surprising that foreign investors are still hesitating about investing in Afghanistan. After all, the country has undergone a lot of political upheavals. The good news is that you can take this opportunity to be a pioneer in Afghan business. It will take guts, knowledge, talent, money, and energy to register company in Afghanistan then see it through until profitable. Entrepreneurs and business veterans alike may see this opportunity and choose to act soon.
If you require any assistance in setting up your company in Afghanistan, look no further than 3E Accounting. Contact us soon to help you navigate through the legal requirements of the Afghan government for businesses. (We also offer other business services such as accounting services, should you need that).