Some business companies require a licence prior to starting activities as summarized below in the attached brochure Registration and working conditions for regulated companies here attached. (Click on the link to consult the document)
1. Mining companies
In order to start their activities, mining companies must have:
• An exploration clearance
• A research authorization
• An authorization mining activities
Companies bidding to undertake small-scale mining production activities must possess a mining permit.
Buying and exporting counters of mining products from the small-scale production must have a permit issued by the Minister of Energy and Mining.
In order to capitalize on the quarry, a company must have a small-scale production or industrial quarry permit issued by the Minister of Energy and Mining.
The application for an exploration clearance, a research permit, a mining and quarry permit, an authorization of buying and export counters of minerals from the small-scale production, is submitted to the Minister of Energy and Mining. The mining department Managing Director is given a copy of the application file.
The following documents must be attached to the authorisation application letter:
• The certified copies of the original of company statutes;
• The name, address and the identity of (the) representative (s);
• The certified copy of the minutes of the shareholders’ General Assembly meeting appointing the representatives;
• The Trade Registry Certificate;
• The Tax Identification Number (TIN);
• The Clearance Certificate;
• The environmental impact assessment;
• Minerals subject to licence;
• Geographical coordinates of the site for which licence is applied for;
• Implementation planning;
• The statement of technical and financial ability;
• Declaration of environmental conformity prior to the launch of activities.
In addition, artisanal and industrial exploitation of minerals companies have to hold a written agreement issued by a qualified public authority when the ground belongs to the State or the written and authentic agreement between the owner of the ground and the applicant.
Companies have to pay fixed rights and annual royalties which differ according to the licence asked for and the size of the site.
The mining research activities and the transport of the mining products require the payment of an annual contribution for the rehabilitation of the sites subject to the research and exploitation. Contribution differ according to the nature of the activities undertaken.
2. Financial activities
1.Bank and finance institutions.
A minimum capital of ten billion BIF (10 000 000 000) for banks and a minimum capital of six billion BIF (6 000 000 000) for financial institutions is required.
Before the launch of activities, banks and finance institutions have to hold the licence issued by the Central Bank (Bank of the Republic of Burundi).
Private banks and financial institutions must have the legal form of limited company.
The application file for the licence must contain the following documents:
· An application letter to the Governor of the Bank of the Republic of Burundi;
· The resolution of the constitutive General Assembly of the new company and the decision of the qualified organ for the shareholders (legal persons) authorizing them to take part in the capital of the bank or the financial institution;
· The Tax Identification Number and the Trade Registry Certificate of the applying Company;
· The original of the statutes of the company;
· The proof of liberation of the statutory minimum capital by the shareholders;
· The list of the shareholders and their shares;
· The list of the managers and the administrators;
· Elements enabling to appraise conditions of worthiness and competence of the managers and the administrators;
· The identity of all shareholders holding at least 5% of the capital;
· Certified financial statements of the last three accounting years of the legal persons shareholders holding at least 5 % of the capital;
· A calendar of activities indicating the contribution to the satisfaction of local or general economic need, describing the kind and the volume of planned operations, including expectations, supported by balance sheets and projected operating accounts for a five-year period of implementation;
· A detailed organizational chart indicating the organization and the lines of responsibility within the future bank or within the future financial institution;
· The description of the technical and financial means which the bank/financial institution plans to implement in support of her program of activity;
· The general regulation of the operations;
· The internal rules of procedures;
· The address of the head-office;
· The logo if necessary;
The applying company must also provide the following information on any shareholder owning at least 5% of the capital:
• Shares breakdown and the identity of the main shareholders in the case of a legal person
• The nature of its activities and its assets and liabilities if it is a legal person.
The opening of branches of foreign banks or financial institutions must be authorized by the Central Bank. The company must have obtained a licence from the banking regulatory authority of the country where the parent company is located.
2.Micro-finance institutions
A microfinance institution may be in the form of a public limited company, a savings and credit cooperative or a savings and credit union or a micro credit. The minimum capital required differs according to the form adopted.
The microfinance institution that chooses the form of a public limited company must have a minimum capital of two hundred million BIF (200 000 000).
In case of cooperative savings and credit or mutual savings and credit, there is no fixed capital required but they must have at least 300 members who subscribed and paid variable shares.
Micro-credit must have an endowment fund.
Microfinance institutions can only provide credit, they do not do public fundraising.
Microfinance institutions cannot start their businesses before they are granted a licence by the Central Bank.
To obtain the licence, the promoters or representatives apply file containing the following documents:
• An application letter for licence to the Governor of the Bank of the Republic of Burundi stating the type of the microfinance intended to open, its missions, the company name and the address of the head-office of the institution;
• Proof of the legal existence of the establishment as a legal person;
• The statutes and the internal rules of the establishment;
• The names, addresses, professions of the persons in charge of the administration, the management, the main management organs of the establishment as well as their resumes and originals of the extract of their criminal record;
• The minutes of the constituent General Assembly, if there have been one;
• List of founding members or shareholders;
• Proof of payments made in connection with subscriptions for shares, capital or credit funds;
• Description of the financial products offered including interest and receivables;
• The business plan and setting up of counters and agencies;
• Appraisal of the human, technical and financial resources with regard to objectives and needs;
• The first-year estimates of transactions, assets, liabilities and results.
3.Forex bureau
The Forex bureau must have a minimum capital of fifty million BIF (50 000 000),
They must have a licence issued by the Central Bank before starting their activities.
The following conditions have to be fulfilled:
• Have a legal form only for the purpose of operating a foreign Forex bureau;
• Be registered in the Trade Registry as a foreign Forex bureau;
• Have appropriate logistics and equipment for running the activities of a Forex bureau;
• Have a qualified and bona fide staff according to the criteria set by the Central Bank and specified in the guidelines regarding the application of the exchange rules.
The application for licence is submitted to the Governor of the Central Bank.
The licence of a Forex bureau is given in the form of a renewable five-year operating permit.
4. Insurance company.
Insurance companies are formed as public limited company or as joint company.
Insurance companies operating non-life branches must have a minimum capital of one billion BIF (1 000 000 000) excluding contributions in kind.
Insurance companies operating life and capitalization branches must have a minimum capital of five hundred million BIF (500 000 000).
No insurance company can operate both branches at the same time.
Insurance or reinsurance undertakings or their dismemberments cannot start their activities until they have obtained the licence of the supervisory and regulatory body for insurance.
Licence is granted to a branch and a company that can only exercise the operation for which a licence has been granted.
The application for licence must be submitted in five copies and must include:
• The list of branches that the company intends to run;
• The list of foreign countries where the company intends to open branches;
• One of the duplicates of the constitutive authentic deed of the company or an expedition;
• The minutes of the Constituent General Assembly;
• Two copies of the statutes and a certificate of bank deposit;
• The list of the surnames, first names, addresses, nationality, date and place of birth of each one of the managers and directors as well as any person called to hold similar positions;
• Criminal record extracts for all these persons issued within a period not greater than three months;
A program of activities containing the following elements:
• A document stating the nature of the risks that the company shall cover;
• For each of the branches that are subject of an application for licence, two hard copies of the latter, to be published for the sake of the users. Two copies of the tariffs must also be published;
• The company's guiding principles for reinsurance;
• The computerization plan of the company, plans of the costs of installation of the administrative departments as well as the financial resources needed for that end;
• For the first three fiscal years, management expense forecasts, forecasts of premiums and claims, probable cash flow, balance sheets, operating accounts, general account of expected profits and losses, provisional statement C1, the forecasts of the financial resources intended to cover the commitments and the forecasts of the solvency margin that the company must have;
• The list of the main shareholders in the case of a public limited company as well as the share capital held by each of them;
• The name and address of the main banking institution where the accounts of the enterprise are opened.
5. Exporters / Importers
People who want to export or import must have an exporter or importer identification code. The exporter/ importer identification code is applied for in the Department of Foreign Trade in the Ministry of Commerce.
The application file must contain:
• A copy of the Trade Registry Certificate;
• A Tax Identification Number (TIN);
• A certified copy of the statutes of the company, in case of legal persons;
• A copy of the ID in case of natural persons.
6. Health institutions
Health institution must have the licence issued by the Ministry in charge of Public Health before starting their activities.
The application procedure for licence is the same regardless of the type of establishment to be created:
The promoter must send a letter of application for authorization to the Minister of Public Health bearing an endorsement from the Governor or the Mayor of the City as well as the Provincial Health Director.
After receiving the application for authorization, the Minister forwards it to the General Inspectorate for Public Health who asks the Provincial Health Director to carry out a temporary inspection.
If the inspection is successful, an in-principle agreement is given to the promoter.
The promoter can then make a request for final inspection through a letter to the Inspector General of Public Health.
After the final inspection and the approval of the Inspector General of Public Health, the health institution can start its activities.
The documents required may differ according to the type of health facility.
7.Health centres and clinics
The applying institution must submit the letter of application together with the following documents:
• A CV of the promoter;
• An ID copy of the promoter;
• A health development plan and related budget;
• The record or file of the health centre Supervisor (Physician or nurse A2 level with 2 years’ experience for a health centre or a Doctor registered in the Order of Physicians for a clinic).
The following documents must be attached to the application for the final inspection:
• Title of ownership, or a lease contract of the house that will host the Health Centre or the Clinic;
• Files of the Technical staff (Certified copy of original Diploma, updated CV and employment contract):
If it is a health centre:
• 2 nurses with A2 level
• 1 laboratory technician with A2 level
• 1 nurse with A1 level or a Doctor
• 3 nurses with A3 level
• 1 manager
• 1 assistant nurse
• 1 worker
• 1 security guard
If it is a clinic:
• 1 doctor for each specialty
• 3 nurses with A2 level
• 1 laboratory technician
• 1 manager
• 1 secretary
• 2 workers
• 1 security guard
8.Optical Centre
The following documents must be attached to the application letter:
• A CV of the promoter
• A copy of his/her ID
• A file of an optician (updated CV and Certified copy of original Diploma)
The following documents must be attached to the application for the final inspection:
• Title of ownership, or a lease contract of the house where the Optical centre will be set up
• Files of technical staff (updated CV and Certified copy of original Diploma with job contract) for:
- 1 optician
- 1 nurse with A2 level
• Files of support staff (updated CV and Certified copy of original Diploma with job contract) for:
- A worker
- A security guard
9.Pharmacies
The following documents must be attached to the application letter:
• CV of the promoter
• Copy of his/her ID
• A file of a graduate in pharmacy in the rural area and of a pharmacist in the urban area.
The following documents must be attached to the application for the final inspection:
• Title of ownership, or a lease contract of the house where the pharmacy will be set up
• Files of technical staff (updated CV and Certified copy of original Diploma with job contract) for:
- A pharmacist or a graduate in pharmacy in the rural area and of a pharmacist in the urban area
- A nurse with A2 level
• Files of support staff (updated CV and Certified copy of original Diploma with job contract) for:
- A worker
- A security guard
10.Accounting activities
All documents provided by the company must have a visa from an accountant approved by the professional order of accountants of Burundi.
Criteria to be admitted to the Order of Professional Accountants:
1. Certificate of full identity,
2. The certificate of good conduct,
3. Criminal records,
4. CV,
5. Diploma or/and certificate (s) obtained, (Certified copy of original Diploma), A1, etc.,
6. The processing fee of 200 000 BIF,
7. Application letter,
8. Certificate of service for employees,
9. Residence Permit for foreigners,
10. Having been registered in the Order of the country of origin (for foreigners),
11. TIN for the self-employed.
11.Legal profession
Any person applying for admission to the Bar association must file an application for registration with the Secretariat of the Order. The required documents to be attached are defined in Article 7 of Act No. 1/014 of 29th November 2002 reforming of the Statute of the Lawyer Profession:
- A citizenship certificate issued by the Ministry of Justice;
- A certified copy of the original diploma;
-An extract from the criminal record certifying that the person was not convicted for criminal acts for actions contrary to highest standards of honour, probity;
- A certificate stating that the applicant has not been removed from the judiciary, public service or the armed forces;
- A certificate stating that the applicant has not been struck by professional incapacity, personal bankruptcy;
- A certificate stating that the applicant did not belong to a foreign bar association and in the positive case that he/she was not struck off;
- Approval of good conduct from the Bar Council after an investigation on morality.
12.Customs Agency
Required documents are:
-An application letter to the Commissioner of Customs and Excise of the Burundian Revenue Authority;
- Copy of the statutes;
- Copy of TIN;
- Copy of Trade Registry Certificate;
- Files of a qualified staff, minimum of 2 persons with experience to customs formalities;
- A copy of the rental/lease contract;
- TIN copy of the managing Director;
- Have a membership to the Association of customs agencies in Burundi;
- Have an affiliation letter from the Burundian Association of Customs and Transitory Agencies;
- A bank guarantee of 100 million BIF.
13.Drinks outlets
Prior formalities to running a drinking outlet include:
- Determining the license category that suit the drinking entity of your choice;
- The license to operate such an outlet is issued by the Minister in charge of trade or his delegate, based a reasoned opinion from a health authority.
These licences categories are assigned according to the request of the promoter or his representative following the payment to the public treasury of 10 000 BIF for the H model and 75 000 BIF the B model. The licences have a duration of one year and are renewable within 20 days from the date of expiry.
Bars and drinking places, including ships anchored at the ports of Burundi, cannot open before 4 pm in rural areas, before 6 pm in urban areas on weekdays and before 1 pm on Saturdays and holidays. The closing time is fixed at 22H.
Additional authorization from the Bujumbura City Council
- A letter of application for an authorization to the Mayor of the city with endorsement from the Municipality of Bujumbura;
- A certificate of non-conformity from the Town Hall;
- A certificate of conformity from SETEMU (Municipal Technical Services);
- A copy of the garbage disposal contract;
- A copy of a receipt for the payment of municipal tax;
- A copy of the lease contract;
-A copy of the identity card or passport and residence permit for foreigners (PAFE);
- A copy of the TIN;
- A copy of the Trade Registry Certificate;
- A business license issued by the Ministry of Commerce.
This sector is governed by the decision N° 001 of 15/01/2013 on pricing of objects and services currently not subject to tax
14.Education
Nursery and kindergarten schools
The formalities and documents needed to open a nursery and / or kindergarten school:
-An application letter to the mayor (the letter must mention the address of the municipality in which one wants to implement this activity);
- a certified copy of the original statutes;
- a copy of the lease contract;
- A clearance certificate issued by the Town Hall (20 000 BIF);
- A certificate of conformity issued by SETEMU (3 000 BIF);
- A copy of the garbage disposal contract.
Primary and secondary schools
Any natural or legal person wishing to open a private school must have an authorization and must meet the following conditions:
- Meet the criteria of good conduct and other human values necessary for education and training;
- Submit the ordinance of granting of civil personality and that of approval of the legal representatives of the association or the foundation;
-Justify human, material and financial resources capable of providing the recommended teaching;
- Have safe and decent infrastructure and equipment necessary for this training;
- Justify proper teaching materials;
- Clear statement of the training objectives and programs;
- Submit statutes in conformity with the objectives of teaching and education recommended by indicating in particular the administrative organs of the school;
- Provide evidence of sufficient means for starting the school;
- The application for authorization to open must be no later than December 31st of the year immediately preceding the proposed opening year;
- The authorization to open a private school is granted no later than 30th April. However, a period of 4 months is required to process the document;
- The authorization of opening does not imply approval; a such approval is granted following a success of the action of training school; it is done by the decision of the Minister in charge of primary and secondary education.
Universities
Any natural or legal person wishing to open a private higher education institution must apply through the official channel:
- The authorization to open an institution of higher education is granted by the ordinance of the Minister of higher education;
- The authorization to open a private higher education institution is subject to the following conditions:
o Meet the criteria of good conduct and other human values necessary for education and training;
o Present the order granting civil status and approval of the legal representatives of the association or foundation;
o Justify human, material and financial resources to ensure the education to implement;
o Have safe and decent infrastructure and equipment needed for this training;
o Justify proper teaching materials;
o Clear statements of the training objectives and programs;
o Submit statutes in line with the teaching and education objectives stated in the project, indicating in particular the administrative bodies of the institution.