Doing Business in Somaliland: Where to Start

Somaliland is not an easy market, and it would be dishonest to pretend otherwise. It is also one of the least crowded. For investors willing to do their homework, it offers a working company registry, a strategic port, and an economy driven largely by livestock trade and remittances from the diaspora.

Doing business in Somaliland: the status question

Start with the fact that shapes everything else. Somaliland has governed itself since 1991, though international recognition remains limited. In December 2025, Israel became the first UN member state to recognise it. According to the most recent reports we could find, no other UN member state had followed, and Somalia continues to regard Somaliland as part of its territory. In practice, this affects contracts, financing and the legal standing of projects. The US State Department notes, for example, that the Berbera Economic Zone operates under Somaliland’s legal framework and is not recognised under Somali federal law. For the history behind the status question, read Somaliland vs Somalia.

What drives the economy

Livestock is the backbone. In 2020, livestock exports were worth about $170 million, roughly 61 per cent of the country’s total exports, according to a report for ODI. Remittances from the diaspora reached as much as $1.4 billion that year. Other exports include frankincense, a story we tell in The Ancient Treasure That Linked Somaliland to Rome.

Mobile money is part of daily life. Telesom launched its ZAAD service in 2009, and paying by phone is routine in Hargeisa; our guide to money in Somaliland covers how it works.

“Somaliland is not an easy market. It is also one of the least crowded.”

Registering a company for doing business in Somaliland

Somaliland’s business registration and licensing services run an online system that lets you search and reserve a company name, apply for registration and download a certificate of incorporation, then apply for a business licence. The name search is free.

Under Somaliland’s companies legislation, businesses can be set up as private or public companies, limited by shares or by guarantee, with single-member companies allowed. Sole proprietorships, partnerships and cooperatives can also be registered. A foreign company can operate through a branch by filing with the Ministry of Commerce, with an authenticated certificate of incorporation and a local representative.

Investment rules for doing business in Somaliland

Outside the economic zone, foreign investors work under Somaliland’s general investment rules. The Ministry of Investment and Industrial Development lists a tax holiday of three to five years on profits, and full customs exemption on imported raw materials, machinery and equipment used for production. It also states that registered, approved investments may not be expropriated unless there is no other way to safeguard the public interest. Laws and incentives are revised from time to time, so ask the ministry which rules apply to your project, and in which sector, before you rely on them.

The Berbera Economic Zone

Next to the port of Berbera, DP World and the Somaliland authorities have developed an economic zone aimed at logistics, warehousing, manufacturing and trade. Its first phase opened in 2023. Somaliland’s Special Economic Zones Law (No. 93/2021) offers zone companies a package of tax and customs incentives; confirm the specific exemptions with the zone operator and a local lawyer before you rely on them. Read more in Berbera Port: Why It Matters for the Region.

Land and property: check the title

Land deserves extra care. In 2015, UN-Habitat reported that 80 per cent of court cases in Somaliland related to land, and that urban land disputes had risen sharply over the previous decade. Under the Urban Land Management Law (No. 17/2001), the state holds title to land and local authorities allocate urban plots. A plot left unbuilt, with its taxes unpaid for two years in a row, can revert to public property.

To ease the pressure on the courts, the Ministry of Interior set up a Land Dispute Tribunal in Hargeisa in 2010, followed by tribunals in Borama and Berbera in 2014–15, according to the same UN-Habitat report. Before you buy or lease, ask a local lawyer to check the title, the seller’s right to sell and any pending claims.

Before you commit to doing business in Somaliland

Take local legal advice before signing anything; this article is general information, not legal or financial advice. Ask early about banking, payments and insurance for your specific project, as these can be more complicated than in a recognised state. Visit in person, and plan the trip with our guide to entry and visas and our Hargeisa Travel Guide. Before your first meeting, our guide to Somaliland etiquette covers greetings and dress.

Sources

1. Israel becomes first country to recognize Somaliland, Africanews, 26 December 2025.
2. Somaliland Explained: Recognition, Berbera and Somalia 2026, The Rio Times, 15 October 2026.
3. 2026 Investment Climate Statements: Somalia, US Department of State.
4. The AfCFTA and the Berbera Corridor, Adria Rius, ODI, October 2022.
5. Business Registration and Licensing Services, Government of Somaliland.
6. Somaliland: types of companies, Cliffe Dekker Hofmeyr.
7. Following Mobile Money in Somaliland, Microfinance Gateway, 2015.
8. Eight reasons to invest in Somaliland, Ministry of Investment and Industrial Development, Government of Somaliland.
9. Partners hold vital training for land dispute tribunals in Somaliland, UN-Habitat, 29 September 2015.
10. Urban Land Management Law (Law No. 17/2001), via UNEP Law and Environment Assistance Platform.

Last checked 28 October 2026. Found an error or something out of date? Tell us.