Operating a Business

flag Rwanda Rwanda: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited Liability Company (LLC)
Number of partners: minimum one shareholder and one director, of any nationality. Maximum fifty shareholders
Capital (max/min): RWF 500,000
Shareholders and liability: liability is limited to the assets of the company
Public Limited Company (PLC)
Number of partners: minimum seven shareholders and one director, of any nationality. Maximum fifty shareholders
Capital (max/min): RWF 100 million
Shareholders and liability: liability is limited to the assets of the company
Limited Partnership
Number of partners: minimum two partners
Capital (max/min): n/a
Shareholders and liability: members have unlimited liability for the company’s debts and liabilities
The Competent Organisation
Office of the Registrar General
Company Directories
Office of the Registrar General
 
Setting Up a Company Rwanda Sub-Saharan Africa
Procedures (number) 5.0 7.5
Time (days) 4.0 21.3

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Rwanda.

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The Active Population in Figures

201820192020
Labour Force 6,179,0876,354,5676,296,625

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 84.24%84.18%84.08%
Men activity rate 84.10%83.95%83.74%
Women activity rate 84.38%84.41%84.40%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
Art. 49 of the Labour code states that the legal employment’s duration is forty five hours per week. However, due to the specific nature of the work the weekly working hours shall be based upon the agreement between the employer and the employee.
Retirement Age
For full pension, a worker must have at least 60 years of age (younger if prematurely aged), with minimum 180 months (15 years) of contributions.
Working Contracts
According to the Labour Code, employment contracts can be concluded for a fixed term, opened ended or for a specific task. They can be either oral or written. However, an employment contract must be in written if it is concluded for a period of 6 or more months; or if the work can't be completed in 6 months; or the employment contract has been signed in Rwanda but has to be implemented in a foreign country.
Labour Laws
Consult the Employment Act, to obtain a summary of the labour regulations that apply in Rwanda

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Cost of Labour

Minimum Wage
Officially there is no minimum wage in Rwanda. According to the 1980 labour law, the minimum wage is RWF 100, but these figures are outdated and are considered below the international standards set by the International Labour Organisation (ILO).
Average Wage
The average monthly wage for an employee is RWF 56,668 (ILO).
Social Contributions
Social Security Contributions Paid By Employers: 5%
Social Security Contributions Paid By Employees: The employer is required to contribute 5% of the employee's gross salary for social security contributions (deducted from the monthly salary), while employees contribution is equal to 3%.

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Social Partners

Social Dialogue and Involvement of Social Partners
The constitution provides for the rights to form trade unions, engage in collective bargaining (art. 38), and strike (art. 39). Nevertheless, de facto such rights are often limited, especially in the public sector or for “essential services” (with the government giving a broad interpretation of this concept, often including services that are not strictly essential for the public interest). Furthermore, according to a report by Freedom House, enforcement of rules against antiunion discrimination is weak, and the government allegedly interferes in union elections (the country’s largest union confederation is suspected to have close ties with the ruling party).
Unions
Trade Union Centre of Workers of Rwanda (CESTRAR)
Unionisation Rate
n/a
Labour Regulation Bodies
Ministry of Public Service and Labour

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Latest Update: April 2022