Closing a Business :: eRegulations RWANDA

Closing a business in Rwanda may follow two different processes depending on whether or not insolvency is involved as the reason for closure.

In case a business is closing for other reasons than insolvency, an application for cessation of trading activities must be submitted at the Office of the Registrar General at Rwanda Development Board (RDB).

When a business is closing due to insolvency, an application for commencement of insolvency proceedings will be filed to a Commercial Court.

Cessation of trading activities Cessation of trading activities for enterprises Cessation of trading activities for companies	As for business registration, cessation of trading activities for enterprises (individual trader) and companies is handled at the office of the Registrar General at RDB. It takes two steps to obtain a removal certificate when the reason for closure is not insolvency and no claims have been raised from potential creditors.

Submit a claim for insolvency	According to Law N° 12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency, proceedings may be initiated by creditors, debtor, members of the Board of Directors or one of them; or the Registrar General. When application to commence insolvency proceedings is successful, a Court order is issued and an Administrator is appointed by the Court. This will be immediately followed by the First creditors meeting which has 2 functions: establishing the Creditors committee to represent all creditors and definitively approving the Court appointed Administrator. The administrator must then prepare a Report describing the financial situation of the company and recommending the insolvency proceeding to be followed (liquidation or restructuring). Within 6 weeks after completion of the report, the Administrator will convene a Creditors general assembly meeting to decide on which insolvency proceeding to follow and verify claims recorded by the Administrator.