FAQ
Registration of your company:
Q1. What’s the minimum capital required to register a company in the free zone?
R1. There is no minimum capital requirement if you are setting up a branch of your company where ever it’s based.
If you are establishing a Free Zone Establishment (FZE), the minimum capital requirement is 2,700 USD and for a Free Zone Company (FZCO) the minimum capital requirement is 70,000 USD.
Q2. Is there any obligation to register a partner?
R2. No need to have a local partner to register at DFZ. 100% foreign ownership.
License:
Q1. Which activities are allowed at the FZ?
R1. All types of activities are allowed in the free zone as the import, storage and re-export, the repackaging and re-labeling, consolidation and deconsolidation of cargo, minor transformation, light assembly or manufacturing, finishing of semi finished products, blending, sorting and grading of products and any others kinds of activities subject to the Approval of Djibouti Ports and Free Zones Authority.
Q2. Is it compulsory to have a license to operate at the FZ and how many licenses are available inside the FZ?
R2. Yes, it’s compulsory to have a license to operate at the FZ and you have 5 kinds of licenses:
Trading License (2 to 5 groups of products)
General Trading License (unlimited groups of products)
Logistics License (Third Party Storage)
Industrial license
Service License
Construction:
Q1. Can I construct my facility? What are the requirements? How to obtain the building permit?
R1. For the lease of land plot, it is mandatory to fence and build the land as per the free zone construction guidelines. The client has to submit to the FZ engineering department all the required documents, plans and drawings concerning its constructions in order to obtain the building permit.
Labor:
Q1. Is there any restrictions regarding hiring a certain % of local force in the FZ/local market?
R1. Inside the FZ, for the first you have no restriction concerning the hiring of foreign staff, at the end of the first year you must 30% of local and at the end of 5 years of activity you must have 70% of local staff.
Q2. What are the rules concerning the health coverage of employees in the FZ/local market?
R2. You have the obligation to register all local staff to the national health coverage organization OPS:
Inside FZ: Total Cost 14.2 % on gross salary
Employee pays 4 %
Employer pays 10.2 %
On the local market: Total cost 19.7 % on gross salary
Employee pays 4 %
Employer pays 15.7 %
Taxes and Customs duties:
Q1. What are the taxes on personal income in the FZ/local market?
R1. Inside FZ, there are no taxes on personal income.
Concerning the local market, personal income tax rates are as following:
Monthly salary less than 169usd, the rate is 2% of the salary.
Monthly salary between 169usd and 282usd, the rate is 15%.
Monthly salary between 282usd and 847usd, the rate is 18%.
Monthly salary between 847usd and 2824usd, the rate is 20%.
Monthly salary over than 2824usd, the rate is 30%.
Q2. What are the taxes on corporate income in the FZ/local market?
R2. FZ: no corporate tax at all
Local market it’s 25% on profits.
Q3.What are the Custom duties at the FZ/local market?
R3. Entry to FZ: no import duties at all.
For the local market, Customs duties are as per the Harmonized System Code of Djibouti Customs. Three major range of customs duties apply 8%, 20% and 33%.
Q4. Can I transfer my money outside the country freely?
R4. Yes, 100% repatriation of capital and profits.
Residency, work permits, driving license etc.
Q1. How can we obtain for our foreign staff visas and works permits?
R1. The Djibouti Ports and Free Zones Authority One stop shop service offers for free zone companies a wide range of services including visas and work permits, driving licenses and registration of vehicles.
General:
Q1.What is the number of inhabitants of Djibouti?
R1. Around 500,000 inhabitants.
Q2. What are the official languages of the country?
R2. Official languages are French and Arabic but usually within ports and free zones areas it’s the English.
Q3. How far DFZ is located from the Port?
R3. DFZ is located 3.1 Km from the Port of Djibouti and the road between Port and DFZ is considered as FZ too.
Q4. Can I do open storage?
R4. Open storage is not allowed on the plots of land except for the storage of vehicles; however land plot has to be fenced and asphalted as per the free zone construction guidelines.
Q5. Can I do shipping and freight forwarding activities within the free zone?
R5. No because shipping license / freight forwarding license are issued and regulated by the Ministry of Transport.
