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Register your business
A person who sets up a business or other activities that may be taxable is obliged to register business with the Registrar General within a period of seven (7) days from the beginning of the business activity. However, a person who carries out non-commercial activities which can generate tax, has the responsibility to register with tax Administration.
You can register a business through the following options:
A. Rwanda Development Board (RDB) registration portal
Business registration in Rwanda is carried out by the Office of the Registrar General (ORG) within the Rwanda Development Board (RDB). Registering an individual enterprise (business in the owner’s names) and a company owned by an individual or group of people is done online through the RDB portal via this link: businessprocedures.rdb.rw
This service is immediate and free of charge. After company registration, the certificate is issued by RDB.
The RDB and RRA systems are integrated to ensure a smooth registration process that provides a single, unique Taxpayer Identification Number (TIN) and a clear understanding of the taxpayer’s obligations.
B. Rwanda Cooperative Agency (RCA) registration portal
Cooperatives must register with RCA through an online portal at cmis.rca.gov.rw or directly at RCA sector office where cooperative activities are carried out.
Note: RRA also continues to register Cooperatives which got certificates before integration with RCA system.
C. Registration to RRA office:
RRA registers and provides TIN to the following:
- Individuals not intending to conduct business for example: Motor vehicle ownership, Tax Clearance Certificates (TCCs), foreign exhibitors, temporary importers and exporters
- Individuals for PAYE/Tax on remuneration, property owners who pay property tax and/ Rental Income Tax
- Non-Government Organisations (NGOs)
- Joint ventures
- Successions
- Public Institutions
Note:This service is provided at all RRA offices and the Headquarters.
Every taxable business activity with a turnover exceeding Twenty Million Rwanda Francs (Rwf20m) in the previous fiscal year or Five Million (Rwf5m) in the preceding quarter is required to register for Value Added Tax (VAT) within seven (7) days from the end of the year or quarter respectively.
Based on the above point, a business that has registered for VAT is legally obliged to acquire an Electronic Billing Machine (EBM) with immediate effect because issuing any other invoice other than the EBM attracts penalties.
Businesses not meeting the above requirements may register for VAT voluntarily and thus acquire EBM to meet the law provisions, as EBM is for all taxpayers registered for Income Tax (PIT/CIT).
After registration, amendment of a business details, whether related to the taxpayer or category of business shall be notified in writing to the tax administration within seven (7) days from the day of the notice of the change. Failure to do so contravenes the law and attracts penalties.
It is free to register a business in Rwanda online through RDB website. However, some private internet cafés also offer assistance with business registration and can charge a fee for this service.
As well as being a legal requirement, there are many advantages to register a business. These include:
- Benefits from the protections provided by business laws, such as limited liability.
- Access to credit from financial institutions.
- Trust in customers with proof of being a registered business.
Once your business is registered , you have the following rights:
- Eligible to apply for tax clearance certificate in order to participate in income enhancing activities such as bidding, obtaining a loan.
- Eligible to apply for Quitus Fiscale.
- Eligible for interaction with Tax Administration, benefiting for Trainings on tax matters.
- Eligible for transfer of title for movable assets.
- Eligible to apply for Dormancy when you cease to operate for a short period for various reasons.
After registering your business, you will have the following tax obligations.
A. Obligations related to Centralized taxes:
- File tax returns such as Personal Income Tax (PIT), Corporate Income Tax (CIP), VAT (for those registered for VAT), PAYE (for those qualifying), Consumption Tax (for those qualifying), Withholding Tax of 3% and 15% and other Withholding Tax (Minerals, gaming tax) for those qualifying.
- Each tax declared must be paid in due time as provided by the law.
B. Obligations related to Decentralized taxes
File the following taxes and Fees: Trading License Fees, Fixed Assets Tax, Rental Income Tax and Cleaning Fees.
A taxpayer or any person is subject to a fine if he or she commits the following faults:
- Failure to comply with the obligation to register;
- Failure to file and submit a tax declaration and pay on time
- Failure to withhold tax;
- Failure to provide proofs required by the Tax Administration;
- Failure to cooperate or not to provide information during a tax audit;
- Failure to communicate on time powers or appointment entrusted to him or her
- Failure to keep books and records of controlled transactions; If he/she obstructs or attempts to obstruct the activities or duties of the Tax administration;
- Failure to submit financial statements by a person with obligation to submit its financial statements for taxation purpose;
- Failure to comply with any requirements provided for in specific laws governing taxes if no provision of such laws provides for a sanction;
- Failure to provide on due time, fail to provide information or provide incomplete, incorrect or misleading information following a request of the Tax administration.