Afghanistan provides several business forms for investors, of which the main forms include:

Limited Liability Company
Corporation
Foreign Business (Branch or Subsidiary)

Limited Liability Company

Limited liability companies (LLC) are considered as a separate legal entity from its shareholders. The key aspects of a LLC include:

Can be formed by a minimum of two shareholders;
Shareholders liability is limited to their capital contribution;
At least one director must be appointed;
Shareholders and director can be non-Afghan residents; however, resident company agent and a board of supervisors must be appointed;
Minimum capital requirement is USD 1.

Corporation

Corporation is equivalent to a public company. The key aspects include:

Can be formed by a minimum of two shareholders;
Shares can be issued to the public;
At least one director must be appointed;
Shareholders and director can be non-Afghan residents; however, Afghanistan-resident company agent and a board of supervisors must be appointed;
Minimum capital requirement is USD 1.

Foreign Business

Foreign business can conduct their operations in Afghanistan through the constitution of a Branch office or a Subsidiary. A Branch is considered as an agent of its principal and does not have a legal personality separate from its principal. However, a subsidiary incorporated in Afghanistan is regarded as a separate legal entity. A subsidiary can be formed either in the form of a LLC or a Corporation.

Further information on the general investment, tax and regulatory regime about the country is available at the following external references:

“Doing Business” report from World Bank – click here.
Reports and publications from OECD - click here.
Reports and publications from IMF - click here.
Reports and news from Tax Justice Network – click here.
Tax overview in Afghanistan – click here.
Overview of Extractive Industry in Afghanistan – click here

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