Senegal Info
Joined: 23 Feb 2007
Posts: 15
Home Country: senegal
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 Posted: Tue Mar 06, 2007 5:06 am Post subject: DOING BUSINESS IN SENEGAL / SENEGAL BUSINESS GUIDE |
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DOING BUSINESS IN SENEGAL
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Société à Responsabilité Limitée (SARL) - Limited Liability Company
Minimum Capital Requirement: 1,000,000
City: Dakar
Registration Requirements:
Procedure 1. Deposit the founding capital with a bank
Time to complete: 1 day
Cost to complete: included in the following procedure
Comment: The company can also deposit the capital with a notary.
Procedure 2. Notarise company bylaws and bank deposit of subscribed capital
Time to complete: 1 day
Cost to complete: CFA 250000
Comment: The procedure takes 3 days if notary prepares; 1 day if notary only signs. The company can prepare bylaws itself but still need the notary to notarise the signatures. This cost includes all the expenses for the Notary.
Procedure 3. Obtain criminal records
Time to complete: 2-7days
Cost to complete: CFA 200 (stamps)
Procedure 4. Register the Company Bylaws at the Centre des Impots
Time to complete: 8 days (av of 3-5 days)
Cost to complete: CFA 65000 (FCFA 2000 per page, 3 copies of the bylaws, assuming 10 pages) + registration fee of CFA 5,000.
Comment: The procedure takes from 5 days to 10 days.
Procedure 5. Register at the Registry of Commerce, Tribunal of Commerce
Time to complete: 20 days (simultaneous with previous procedure)
Cost to complete: stamp, 2000, 30000 CFA fixed fee + CFA 90 per 1 million of capital
Comment: The procedure takes officially 2 days, but usually more, up to 1 month
Procedure 6. Publish a notice of the new company in an official journal
Time to complete: 4 days
Cost to complete: CFA 70000
Comment: Must be done within 15 days of registration. The procedure takes from 1 day to 7 days. Cost: CFA 100,000 on a daily newspaper, CFA 50,000 on le LEX.
Procedure 7. Register at the Ministry of Economy and Finance to obtain a single number which comprises the former national company ID number (Numero d'Identification national des enterprises, NINEA), an ID number for indirect tax (NITI) and a taxpaying account.
Time to complete: 10 days
Cost to complete: CFA 1,000 (fiscal stamp)
Comment: Provisional number is ready in 1 week, final number in 2 weeks
Procedure 8. File a declaration of commencement of operations at the Inspection Regionale du Travail (Labour authority)
Time to complete: 3 days
Cost to complete: no charge
Comment: The procedure takes from 1 to 4 days.
Procedure 9*. Get affiliated with the Caisse de Securite Sociale (CSS)
Time to complete: 2 days
Cost to complete: no charge
Comment: The procedure takes 3 days (official), 1-2 days (in practice).
Procedure 10*. Get affiliated with the pension fund ( Institut de Prevoyance Retraite - IPRES)
Time to complete: 8 days (av of 3-5 days)
Cost to complete: no charge
Comment: Get affiliated with the Induitution de Prevoyance Maladie (IPM) if there are >100 employees.
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).
FORMS OF BUSINESS ORGANISATION
A business may be conducted by individuals, Senegalese companies or branches of foreign companies.
A Senegalese company may be a joint stock company, a limited liability company or a single proprietorship in accordance with the Civil and Commercial Code. Minimum equity is CFA 500 000 for joint stock companies and CFA 2 million for limited liability companies with a minimum of seven shareholders that may be individuals, public bodies or companies. Specific regulations apply to public companies.
Limited liability companies or branches of a foreign company are the most common ways for operating a business in Senegal. Branches of foreign companies or branches as such and their liabilities are not limited to the extent of their local assets.
All limited liability companies and joint stock companies with equity in excess of CFA 7 million have to appoint statutory auditors with a mandate renewed every three years. Statutory audits have to be conducted in accordance with generally accepted auditing standards.
TAXATION
The corporate income tax rate in Senegal in 2002 was 35%. The rate of the tax on industrial and commercial profits is 35% for incorporated enterprises. Banking operations are taxed at both the regular rate of 17% and at a reduced rate of 7%. Senegal has double-taxation treaties with about 18 countries.
Individual taxes include a salary tax on the employee (3% for a Senegalese worker, and 6% for a foreign worker) and a general income tax with rates ranging up to 50%.
Indirect taxes have long been the mainstay of Senegal's tax system, with import duties by far the most important. Other indirect taxes include the business license tax, export taxes, a real estate tax, and registration and stamp taxes. The value-added tax (VAT) has a standard rate of 20%. An equalization tax is applied to local purchases at 2% and to importations at 5%. |
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