Burkina Faso Info
Joined: 23 Feb 2007
Posts: 15
Home Country: burkinafaso
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 Posted: Mon Feb 26, 2007 9:54 am Post subject: DOING BUSINESS IN BURKINA FASO / BURKINA FASO BUSINESS GUIDE |
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DOING BUSINESS IN BURKINA FASO
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Société à Responsabilité Limitée (SARL) - Limited Liability Company
Minimum Capital Requirement: 1,000,000
City: Ouagadougou
Registration Requirements:
Procedure 1. Deposit subscribed capital in a bank
Time to complete: 1 day
Cost to complete: no charge
Procedure 2. Request criminal clearance record of manager
Time to complete: 4 days
Cost to complete: FCFA 325 (125 + 200 stamps)
Comment: Two extracts of record are required for each manager
Procedure 3. Register Articles and Minutes of Founding meeting with the Direction General des Impots
Time to complete: 7 days
Cost to complete: see comments
Comment: 6 copies of Articles and Minutes are required; each page needs a stamp. The cost amounts to CFA F 400 per page stamp, assuming 10 pages for Articles and 5 pages for Minutes. In addition, there is a capital tax of 3% of capital in kind or in money, and 6% of capital in immovable property (FCFA 4311). Lastly, a fixed fee of FCFA 6,000 has to be paid.
Procedure 4. Have a Notary notarize the declaration of capital subscription and deposit the two acts with the notary office
Time to complete: 3 days
Cost to complete: 3% of capital + FCFA 6 000 (fixed fee) + FCFA 5 000 + FCFA 4 000 (recording service by tax authority); FCFA 2000 (stamps)
Comment: Proof of deposit of capital is needed.
Procedure 5. Register at CEOFRE (Centre des Formalités de Entreprise) for company registration, tax number (IFU), labor and social security)
Time to complete: 12 days
Cost to complete: FCFA 20000
Comment: In addition, obligatory tax inspections were abolished.
By decree n° 2005-332/PRES/PM/MCPEA/MFB/MTEJ of 21 June 2005, a new Centre for Business Formalities (CEFOR) was created and became operational in Ouagadougou. A single application form has to be submitted to complete company registration (with RCCM), obtain the fiscal I.D. (IFU at the Direction Générale des Impots), the professional license (Carte Professionnelle de Commerçant at the Ministry of Commerce) and register for social security (CNSS). Upon submitting the form, CEFOR organises the registration with the court and other authorities. According to official claims, in seven working days, the entrepreneur can pick up the final documents and tax number at CEFOR. Companies are now also assigned a unique company identification number for company registration, fiscal I.D. and social security affiliation.
The official timeline for the completion of the above registration procedures is 7 working days. However, CEFORE forwards the documents to the respective agencies and the delay in practice is longer.
Procedure 6. Publication of notice in a local newspaper
Time to complete: 4 days
Cost to complete: FCFA 40000
Comment: The cost ranges from FCFA 29,500-50,000.
Procedure 7. File declaration of opening (Declaration de l'etablissement) to the National Agency of Employment Promotion (ANPE)
Time to complete: 1 day
Cost to complete: FCFA 2000
Comment: Fill out two application forms.
Procedure 8. File for declaration of establishment with the regional Labour Office (Direction Régionale du Travail)
Time to complete: 2 days
Cost to complete: FCFA 5000
Comment: Fill out five cards for each worker. FCFA 1,000 per card.
TAXATION
The contribution of direct taxation of all kinds to the governmental revenue is relatively low. Individuals pay a single income tax, varying from 2-30% on salaries, tips, and other remuneration, and 10-45% on business income. Companies pay a tax on profits, a forfeit tax, and taxes on income from debt and investments. There are also a number of real estate taxes. Sales and transaction taxes are shared by most of the population. Indirect taxes include customs duties and license fees.
There are consumption taxes on specified items, such as petroleum products and tobacco and local taxes on motor vehicles. |
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