Business Environment in Afghanistan
Contents
Introduction 3
Objectives and Methodology 5 Choice of Methodology 5 Type of Research 5 Questionnaire 6
1. Conditions of Business in Afghanistan 7 1.1 Geography 7 1.2 People of Afghanistan 8 1.3 Political System 8 1.3.1 Current Political Situation 9 1.4 Current Economic Situation 10 1.4.1 Living Conditions 11 1.5 Business opportunities in Afghanistan 12 1.5.1 Investment Opportunities 13 1.6 Agriculture 13 1.6.1 Opportunities 13 1.6.2 Agriculture Investment Opportunities 14 1.6.3 Major Commercial Crops Production and Processing 15 1.6.4 Investment in Agriculture Infrastructure 16 1.7 Logistics and Transport 17 1.8 Opportunities in Mining 17 1.9 Oil and Gas Reserves in Afghanistan 18 1.10 Energy and Power 19 1.11 Investment Opportunity in Housing 22 1.12 Telecommunications 23 1.13 Afghanistan Carpet Industry 23 1.14 How can we develop Afghanistan Economy 24
2. Business Supporting Programs 26 2.1 Afghanistan’s Business Supporting Program Partners 26 2.1.1 USAID (United States Agency for International Development) 26 2.1.2 MIGA (Multilateral Investment Guarantee Agency) 26 2.1.3 United Nations Development Program 27 2.1.4 IntEnt, a bridging program for SME's 28 2.1.5 Afghanistan Business Council (ABC) 29 2.1.6 World Bank 30 2.2 Role of Small and Middle-Sized Enterprises in Afghanistan 30 2.2.1 Afghanistan Small and Medium-Sized Enterprise Development Activity (ASMED) 30
3. How to set up Business in Afghanistan 32 3.1 Applying for Visa and Work Permits 32 3.2 Labor 32 3.3 Office Space and Industrial Plots 33 3.4 Power, Water and Sewage Infrastructure 34 3.5 Transports and Logistics 34 3.6 Financing and Insurance 35 3.7 Types of Taxes Paid while Doing Business 36 3.7.1 Taxes and Incentives 37 3.7.2 Corporate Income Tax 37 3.7.3 Personal Income Tax 37 3.7.4 Wage Withholding 37
Introduction 3
Objectives and Methodology 5 Choice of Methodology 5 Type of Research 5 Questionnaire 6
1. Conditions of Business in Afghanistan 7 1.1 Geography 7 1.2 People of Afghanistan 8 1.3 Political System 8 1.3.1 Current Political Situation 9 1.4 Current Economic Situation 10 1.4.1 Living Conditions 11 1.5 Business opportunities in Afghanistan 12 1.5.1 Investment Opportunities 13 1.6 Agriculture 13 1.6.1 Opportunities 13 1.6.2 Agriculture Investment Opportunities 14 1.6.3 Major Commercial Crops Production and Processing 15 1.6.4 Investment in Agriculture Infrastructure 16 1.7 Logistics and Transport 17 1.8 Opportunities in Mining 17 1.9 Oil and Gas Reserves in Afghanistan 18 1.10 Energy and Power 19 1.11 Investment Opportunity in Housing 22 1.12 Telecommunications 23 1.13 Afghanistan Carpet Industry 23 1.14 How can we develop Afghanistan Economy 24
2. Business Supporting Programs 26 2.1 Afghanistan’s Business Supporting Program Partners 26 2.1.1 USAID (United States Agency for International Development) 26 2.1.2 MIGA (Multilateral Investment Guarantee Agency) 26 2.1.3 United Nations Development Program 27 2.1.4 IntEnt, a bridging program for SME's 28 2.1.5 Afghanistan Business Council (ABC) 29 2.1.6 World Bank 30 2.2 Role of Small and Middle-Sized Enterprises in Afghanistan 30 2.2.1 Afghanistan Small and Medium-Sized Enterprise Development Activity (ASMED) 30
3. How to set up Business in Afghanistan 32 3.1 Applying for Visa and Work Permits 32 3.2 Labor 32 3.3 Office Space and Industrial Plots 33 3.4 Power, Water and Sewage Infrastructure 34 3.5 Transports and Logistics 34 3.6 Financing and Insurance 35 3.7 Types of Taxes Paid while Doing Business 36 3.7.1 Taxes and Incentives 37 3.7.2 Corporate Income Tax 37 3.7.3 Personal Income Tax 37 3.7.4 Wage Withholding 37