Company Registration in Senegal

Senegal is one of the African states that are good choices to start a business. This country is rich in natural resources. It emphasizes the production, service, construction, agricultural, and chemical sectors. Business incorporation in Dakar or any other city in Senegal can instantly make available these must-have benefits of the jurisdiction.

Company Formation in Senegal: Main PROs

Starting a company in Senegal may be considered a good business idea in view of these core advantages usually attributed to this jurisdiction:

• stable democratic political system;
• openness to foreign capital;
• skilled manpower involving which will be associated with moderate costs;
• low and flexible taxation;
• high level of confidentiality without the option of automatic exchange of tax information;
• absence of currency control limitations;
• availability of free zones where, among others, a 0% corporate tax rate is applied.

Legal and Organizational Forms

If you wish to set up a company in Senegal or establish your official presence in any alternative way, choose among these available options:

• Limited liability company – this is a TOP choice for most foreign businessmen in view of the limited liability of each promoter. Any shareholder will never bear any kind of liability in excess of the funds contributed to the company. It is expected that the starting share capital of this company will be at least XOF 10 million. A higher amount of share capital may be expected for enterprises from specific industries. This company may be incorporated even by one shareholder of any nationality.
• Branch – a choice feasible for those businessmen who wish to arrange the interaction with local customers and contractors in a more effective way. Establishing a branch will not require substantial amounts to be invested but it is not associated with getting a separate legal personality at the same time. Full liability over the results of its operation will always bear its mother company.

How to Open a Company in Senegal

The general steps needed to form a company in Senegal are next:

1. Shortlisting the scope of activities that a future entity is going to conduct.
2. Selecting and verifying a trading name for a future enterprise.
3. Depositing the amount of the company's share capital.
4. Collecting and formalizing appropriately all the details about the company's promoters, final beneficiaries, and a mother company (if present).
5. Composing and executing statutory documents and submission forms.
6. Contributing incorporation fee and submitting the set of registration documents for consideration. Getting the company’s identification number. Entering the information about the new entity in the Commercial Registry.
7. Registration for tax and social security purposes.
8. Opening corporate bank accounts.
9. Applying for and obtaining a specific license/permit that may be needed for a chosen regulated activity.

Legal and Regulatory Aspects

Incorporating a business in Senegal is usually a straightforward process where clear legal requirements are applied. The local government makes steps to ease the incorporation process, including through one-stop-shop and remote registration. There are no restrictions for non-resident investors. They may either create a company independently or involve a local partner in doing business. The option of establishing a public-private partnership is available as well. Foreign investors may enjoy all necessary informational and other support from the local Investment Promotion Agency.

Taxation in Senegal

If you consider the option to open or buy a company in Senegal, it should be evaluated along with the next taxation points:

• Profit tax (for business forms) – 30%
• Income tax (for individuals) – a progressive scale is applied with the highest threshold of 43%
• Value-added tax – 18%
• Withholding tax (for non-residents) – (1) dividends – 10% (2) interests – 8% or 16% (3) royalties – 20%
• Capital gains tax – (1) for business forms – see profit tax (2) for individuals – see income tax.

How Prifinance Attorneys Can Assist You

If you have clarified your business goal of buying or opening a company in Senegal, Prifinance attorneys are prepared to foster its practical realization. Experts possess versatile experience gained through more than 11 000 registration projects implemented worldwide, including in Senegal. Forward the details of your case and obtain fully personalized and professional legal assistance.