Expatriates Forums in Sudan

Sudan Info · Joined: 20 Apr 2007 Posts: 14 Home Country: sudan

DOING BUSINESS IN SUDAN

STARTING A BUSINESS

STANDARDIZED COMPANY
Legal Form: Société à responsabilité limitée /Gesellschaft mit beschränkter haftung (SARL/GmbH)
Minimum Capital Requirement: 0
City: Khartoum

Registration Requirements:

Procedure 1. Submit application for preliminary approval to Registrar and reserve company name

Time to complete: 3 days

Cost to complete: SDD 4200

Comment: The memorandum, articles of association and three proposed names must be attached to the application. The name approval and preliminary approval for establishing a company shall be granted within 3 days.

Procedure 2. Notarise memorandum and articles of association

Time to complete: 2 days

Cost to complete: SDD 50,000 - 57,300

Comment: The memorandum, articles of association, and the declaration of compliance (form C2) should be notarised after obtaining the preliminary approval. The notarised documents are then submitted to the registrar when applying for the final approval.

Muslim companies also need to obtain a Zakat clearance certificate prior to the notarisation of the documents (4 days, SD 70,000). The Zakat chamber is responsible for the collection of taxes imposed by Islamic rules.

Procedure 3. Notify taxation chamber authorities

Time to complete: 1 day

Cost to complete: SDD 5200

Comment: Before applying for final approval and registration, the preliminary approval should be submitted to the taxation chamber together with the memorandum and articles of association, which should be stamped by the taxation chamber in acknowledgement of notification.

Procedure 4. Register with commercial registry

Time to complete: 5 days

Cost to complete: Stamp duty and other application/administrative fees (see comment) + 0.25% of nominal capital

Comment: Companies involved in import/export activities also have to obtain membership of Chamber of Commerce. This membership is required by the Commerce Registrar when an application is made for registration in Exporters & Importers Register.

Prior to delivering the certificate of incorporation, a representative of the Registrar may visit the registered office to confirm its existence.

Stamp duties: SDD 5,000 for stamp duty for workers' association; SDD 100 for veterans' stamp duty; SDD 300 for lawyers' association stamp duty; SDD 4,000 for registry fees.

Procedure 5. Site inspection by registry

Time to complete: 2 days

Cost to complete: no charge

Comment: As of 2005 it is mandatory for a representative from the companies' registry to visit the proposed place of business to confirm its existence. It is now also mandatory to obtain and post a sign board outside one's place of business (cost: SDD 3000 to 5000.)

Procedure 6. Apply for tax identification number

Time to complete: 2 days

Cost to complete: SDD 200

Comment: The following documents are required:

1. Three copies of lease contract of registered office, search or hosting certificate
2. Shareholder information
3. Memorandum & articles of association (notarised)
4. two copies of certificate of incorporation
5. Completed registration forms

Procedure 7*. Register for VAT

Time to complete: 2 days

Cost to complete: no charge

Comment: The company registers for VAT in the same building but at a separate department. It is not mandatory to register at the same time.

Procedure 8. Register with labor authorities

Time to complete: 14 days

Cost to complete: SDD 15200

Comment: The company should deposit the basic work and penalties regulations with the competent labour office.

Procedure 9. Enroll employees for social security

Time to complete: 3-7 days

Cost to complete: SDD 5000

Comment: The following documents are required:

1. Certificate of incorporation
2. Memorandum & articles of association
3. List with names and salaries of employees
4. completed registration form

Procedure 10. Make a company seal

Time to complete: 2 days

Cost to complete: SDD 4000

Comment: The cost depends on the kind of material used. The lowest cost is SDD 4,000.

Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).

TAXATION

Direct taxes constituted about 14% of current receipts in 1985/86, and indirect taxes accounted for about 67%. Types of levies include a business profits tax, income tax on salaries, various consumption and production taxes, stamp duties, and miscellaneous fees and charges, including a development tax. The personal income tax was first imposed in July 1964, and an income tax on Sudanese working abroad was added later. Remittances from Sudanese working abroad doubled to US$106 million in 1991/92, but were still significantly down from the US$445 million figure of 1987/88, before the Gulf War. Income from property, hitherto exempt from any tax, became subject to the business profits tax on 1 January 1964. A VAT of 10% was added in 2000.