Here are Things to Know About Afghanistan Company Formation

Afghanistan Company FormationBefore you decide to legitimize your company, you must formulate some business names. When it comes to Afghanistan company formation, you must register with the Afghanistan Investment Support Agency (AISA) where your name will be reserved. You’re allowed to have the name selection to have words from Dari, Pashto, English or any other international dialect.

Necessary Legal Documents and Regulations for Afghanistan Company Formation

Afghanistan has recently attracted Foreign Direct Investment (FDI), and as a result, the process is easier than before. If you’re legitimizing a company in Afghanistan, you’ll be required to have the president of the company, vice-president and shareholders each having their own shares. Some of the documents required include:

  • a copy of your passport with the legit visa of the president, vice-president, and shareholders
  • identification card of the official
  • the attendance of both the president, vice-president, and shareholders
  • official power of attorney (absence of the officials)

 

You must ensure verification of the documents through all the necessary authorities such as the Afghan Embassy within the investor’s country and the Ministry of Foreign Affairs in Afghan. Then you must submit four (4) passport sized photos of the members, a copy of the legal rental agreement, letter of agreement from the appropriate Afghan Ministry and letter of experience of both the president and the vice president.

 

Business Entities in Afghanistan

Afghanistan company formation involves the two legal entities the Private Limited Company and the Branch Office. For the Branch office, you’ll be required to submit the following:

  • certified copies of the mother company
  • a detailed minute of business from the Board Meeting
  • certified notarized copies
  • audit report of the parent company

 

You can then wait for one week to complete the process of incorporating a company in Afghanistan.

 

Tax Obligations

For tax obligation, you must submit the following:

  • Tax Identification Number (TIN), which you can acquire upon registering your company with the Afghanistan Investment Support Agency (AISA)
  • Memorandum and Article of Association
  • two sets of coloured passport photographs
  • verified copies of ID or passport of director(s)
  • application form

 

Remember, that the Afghan Central Business Registry (ACBR) is in charge of gathering and analyzing of specifications and details of all the businesses. They would forward later to the Ministry of Justice in Kabul for the periodical in the official gazette. The VAT tax stands at 10 percent while the corporate tax is at 20 percent. For the latter, you must submit returns on a monthly basis. The general fee for registration is approximately AFN500 and AFN1,000 for publication.

The Afghanistan company formation process also includes the attainment of an AISA license. You need to pay a fee of US$100 for this document. After payment, expect it to arrive after five (5) working days.

 

Other Requirements

According to the Company Acts, every company must register their employees for Social Security. The employer is eligible to pay 50 percent whereas the employee to contribute 20 percent. This is by the Afghan labour laws which are mandatory. For the successful operation of your company, you must ensure that you have a registered office and address for legal and tax purposes. Once you’ve accomplished these, then you can enjoy doing business in Afghanistan.

 

Contact us, 3E Accounting United Kingdom, for more information. We provide the best services for business registration and company formation in Afghanistan.