How to start and register a business in Somalia

Who this is for

This page is for anyone starting a shop, service or company in Somalia, at home or from abroad. It explains the official route and links to the official offices. We are not the registry and do not register businesses.

Most Somali businesses are small

In the 2022 national household survey, 15.8 percent of households ran their own business. The most common were street and market trading (37.2 percent) and small shops and workshops such as tailors, barbers and mechanics (23.4 percent). More women than men own them, and only about a third (34.7 percent) were registered (Somali National Bureau of Statistics, SIHBS 2022).

Register online (federal Somalia)

The Somali Business Registration System (SBRS) at ebusiness.gov.so was launched by the federal Ministry of Commerce and Industry on 30 March 2022. You can reserve a business name, register a new business, change the details of an existing one, read the rules and fees, and pay online or by mobile money from any device (Radio Muqdisho).

The steps:

1. Search for and reserve a company name.
2. Pay the fee online or by mobile money.
3. Submit the registration details (owners, directors, address, type of business).
4. Download your business letter and certificate of incorporation.
5. Apply for the licences your activity needs (for example import and export, food, health or transport).

Steps follow the portal's own process (Radio Muqdisho; 3E Accounting guide).

How long it takes

The online system cut registration from nine steps to three, and the average wait from more than two months to four days. About 1,089 businesses registered during the pilot from 2021 to April 2022. The target was 5,000 businesses by December 2025, 30 percent of them led by women (World Bank, June 2022).

Costs

Fees depend on the type of business and are published on the portal (Radio Muqdisho). Check the current list on ebusiness.gov.so before you pay. Federal member states and the Banadir Regional Administration may also charge local business licence fees.

Trade marks

The Ministry of Commerce and Industry registers trade marks. It publishes the list of documents needed (Ministry of Commerce and Industry, trade mark requirements; Bowmans).

Money to start

• Banks: 13 local banks and one foreign branch are licensed. Their lending grew 14 percent in 2025, mostly for trade and property (Central Bank of Somalia, Annual Report 2025). Banks follow Islamic finance rules.
• Microfinance: the Central Bank licensed the first 7 microfinance institutions in November 2025, to serve micro-businesses, women and young people (same source).
• Credit records: a Credit Information System and Collateral Registry are being built with the IFC, so lenders can see a borrower's record (same source).
• Mobile money: most customers already pay by phone. See Mobile money in Somalia.

In 2022 only 2 percent of households that borrowed got their loan from a bank (SIHBS 2022).

Help and training

Three innovation hubs, iRise Hub and SIMAD iLab in Mogadishu and HarHub in Hargeisa, formed a national startup network in 2026. It received more than 3,600 applications, trained about 500 entrepreneurs and incubated more than 200 startups (MENA Startup Digest).

Somaliland

Somaliland registers businesses through its own commerce ministry. In 2021 it cut business registration fees by 50 percent (Somaliland Standard). Somaliland also launched a $500,000 interest-free loan scheme for young entrepreneurs (Dawan Africa).

Common problems

• Internet access: if you cannot get online, ask the ministry's offices in Mogadishu or the state ministries.
• Local licences: registering nationally does not replace a city or state trading licence.
• Fake agents: pay fees only through the official portal or the ministry.