The Bill now proceeds to the Federal Parliament. It is the first national law to give legal identity to sole traders and partnerships, and it enforces the Somali Business Registration & Licensing System (eBusiness.gov.so)
MOGADISHU — The Cabinet of the Federal Republic of Somalia today approved the Business Registration and Licensing Bill, tabled by the Ministry of Commerce and Industry.
The Bill now proceeds to the Federal Parliament of Somalia for debate and enactment.
The Bill establishes, for the first time, a complete federal framework for the registration and licensing of businesses that are not companies — principally sole traders and partnerships, which together account for the large majority of commercial activity in Somalia. Companies continue to be governed by the Companies Law.
At its centre is a national Business Register, designed to be digital and shared by the Federal Ministry, Federal Member State ministries and local governments. A single shared register removes the burden of repeated re-registration and makes business identity verifiable — a precondition for bank credit, public procurement and cross-border trade.
“For years Somali entrepreneurs have built their businesses on trust and custom, without a legal identity that protects what they own. This Bill gives sole traders and partnerships legal personality — and with it access to bank finance, public contracts and international markets. Our purpose is not to add another administrative burden; it is to deliver a system that is clear, fast and fair.”
— H.E. the Minister of Commerce and Industry, Amb. Gamal Mohamed Hassan
WHAT THE BILL PROVIDES
Legal identity
A clear route for sole traders and partnerships to be registered and licensed.
National register
A digital Business Register shared across federal, state and local levels.
Defined mandates
Specified sectors — including import and export, fisheries, petroleum and minerals, and air and maritime transport — fall to the Federal Ministry; Federal Member States license businesses operating within their own territories.
Rights of traders
Freedom to choose activity and capital structure, protection of business property, and equal treatment before the law.
Due process
Refusals must be given in writing with reasons within a defined period, and traders have a right of appeal to the competent court.
Warning before penalty
Enforcement begins with a written warning and a period to correct, before any further step.
Beneficial ownership
Disclosure of beneficial owners — directly supporting Somalia’s anti-money-laundering and counter-terrorist-financing commitments.
One-stop process
A taxpayer identification number is issued through the same licensing process.