Somaliland maintains a strong system of investment rights and a straight forward corporate law where investors will get adequate protection and compensation for their investments:

Foreign Investment Protection

The current Foreign Direct Investment (FDI) Act provides the norms and rights which most investors will be seeking, although the details of those norms are still in the process of being finalized. Currently, the norms for Foreign Investments and the rights of the Foreign Investors are being amended.

For foreign investors to be able to enjoy the rights included below and in the FDI Act, the investment must be registered with the Foreign Investment Board. The methods required to perform this registration involve filing the details of the investment with the Board to first apply for the venture or investment to be approved by the Board. This application must be made prior to the investment capital being transferred into Somaliland. The criteria the Board will use to review the application are still being developed. The Board is required under the law to provide the investor with a “Certificate of Foreign Investment in an Approved Enterprise” if it approves the investment.

Registration of company is a two-step process. It usually begins from the Ministry of Trade and Investment with application and memorandum of understanding or a bylaw attached to it, and goes to the Office of Attorney General which issues the final registration certificate. Registration of a foreign company needs the approval of the Investment Board. The time usually varies between two to three weeks.

If the Board approves the venture or investment, the investor then will file a second application to register the investment after funds for investment is transferred into Somaliland. The Board is required to provide the investor with a “Certificate of Foreign Investment Registered” if the venture or investment has been approved by the Board prior to the transfer. When the investor has received the Certificate of Foreign Investment Registered, they will be entitled to the benefits provided by the FDI Act.


Investments that have been properly registered with and approved by the Board will be treated the same as domestic enterprises. There is no discrimination between Domestic Investments, Diaspora investments or Foreign Investments.