How to start a business in Sudan as a foreigner (2026)
Starting a business in Sudan as a foreigner: restricted.
On paper Sudan's 2021 Investment Encouragement Act offers a comparatively liberal regime, equal treatment of foreign and domestic investors, up to 100% foreign ownership of limited liability companies, and a 'single window' approval service. In practice, ongoing civil war since April 2023, economic collapse, currency instability, sanctions exposure to the war economy, and a high foreign-capital deposit requirement make actually starting a business extremely difficult today. The de jure framework is moderate-to-open, but the de facto current situation is restricted.
Legal framework
Investment (Encouragement) Act 2021 administered by the Ministry of Investment; company formation under the Companies Act 1925 and related registration statutes via the Commercial Registrar (Department of Commercial Affairs). Note: an active SAF-RSF civil war since April 2023 has rendered normal company formation largely non-functional in much of the country.
Key points: starting a business in Sudan
Foreign ownership
The 2021 Investment Encouragement Act grants foreign and domestic investors equal treatment, and limited liability companies may be up to 100% foreign-owned; officials nonetheless strongly encourage taking a Sudanese partner. Certain sectors remain closed or restricted to foreign capital, including most telecoms/media, electrical power generation, parts of financial services, and segments of transport (rail, freight, inland waterways, airport operations).
Minimum capital / deposit
Foreign investors must transfer 'earnest money' of no less than US$250,000 (or acceptable foreign-currency equivalent) from abroad through the Central Bank of Sudan to obtain an investment license, to be spent on implementing the project after licensing.
Setup steps
Typical path: (1) submit a project proposal and feasibility study to the Ministry of Investment's 'single window' unit for inter-ministerial review and license approval; (2) register the company with the Commercial Registrar (Department of Commercial Affairs) by filing the memorandum and articles of association and details of directors/shareholders under the Companies Act; (3) deposit required capital via the Central Bank and obtain tax, sector and operating permits.
Legal structures available
Foreign investors can establish a locally incorporated private limited company (subsidiary), a branch office, or a representative office; corporate practice is governed by the Companies Act 1925 alongside the Registration Law 1971 and Company Names Law 1931.
Active conflict, decisive constraint
Sudan has been in full-scale civil war between the Sudanese Armed Forces and the Rapid Support Forces since 15 April 2023, now in its fourth year as of 2026, with state institutions disrupted, the capital and registries affected, and the economy in collapse. This makes routine company formation, licensing and banking effectively unworkable across much of the country.
Sanctions and war-economy risk
The U.S. has sanctioned entities tied to both warring parties (including RSF- and SAF-linked businesses and gold-mining operations), and key resource assets such as oilfields and gold mines have been seized amid the fighting, exposing any new business to significant sanctions, reputational and operational risk.
Sources
- investmentpolicy.unctad.org/investment-policy-monitor/measures/3729/sudan-publication-of-investme
- investmentpolicy.unctad.org/investment-laws/laws/334/sudan-the-investment-act
- state.gov/reports/2022-investment-climate-statements/sudan
- cfr.org/global-conflict-tracker/conflict/power-struggle-sudan
- securitycouncilreport.org/monthly-forecast/2026-02/sudan-38.php
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