Comparison of Africa freezone entities

Comparison of Africa freezone entities

Africa free zones comparedEgyptLibya Nigeria Kenya
Summary at a Glance
Total year 1 engagement set up costs?US$20,600US$20,370US$12,990US$13,750
Total year 2 costs (incl. audit and tax)?US$9,100US$8,150US$5,190US$3,400
Minimum paid-up share capital required?US$1,000US$36,000US$61,958US$2
Name of the most popular free zone?Alexandria Free ZoneZwara Free Trade ZoneOK Free Trade ZoneAthi River Export Processing Zone
Free zone mostly popular for:ManufactureManufactureManufactureManufacture
Total engagement period?3.5 months6 months4 months4 months
Exempt from corporation tax and VAT?YesYesYesYes
Our Client must travel?YesNoNoNo
Average monthly warehouse rental (per sq. m.)?US$4US$2US$5US$5
Manufacturing allowed in the free zone?YesYesYesYes
Corporate tax payableNoNoNo10 years tax holiday
Literacy % of population?73.80%91%59.60%78%
English language proficiency % of population?35%20%53%19%
Incorporation Requirements
Branch office or LLC recommended?LLCLLCLLCLLC
How long to secure a corporation number?4 weeks3.5 months5 weeks3-4 weeks
Minimum number of shareholders?1122
Minimum number of directors?1121
Resident director required?YesYesNoNo
Resident representative or agent required?NoNoNoNo
Corporate directors allowed?YesYesNoNo
Public register of shareholders & directors?YesYesYesYes
Special permit or license required?YesYesYesYes
Minimum amount of paid-up capital?US$1,000US$36,000US$61,958US$2
Fast solution (turnkey) available (click link)NoNoYesNo
Tax and accounting considerations
Global sales exempt from corporate tax?YesYesYesYes
Local GST or VAT (%)?10-25%NoNoNo
Tax incentives for manufacturing startups?YesYesYesYes
Withholding tax payable on dividends?10%0%0%0%
Global sales exempt from GST/VAT?YesYesYesYes
Average customs tax on imports?0%0%0%0%
Social contributions payable on employees in FTZ?NoNoNoNo
Corporation tax payable on local sales?No0%0%0%
Annual audited financial statements required?YesYesYesYes
Access to how many double tax treaties?5681110
Bank account characteristics
Healy Consultants’ preferred bank?SCB CairoNCBSCB LagosSCB Nairobi
Do I travel to open the bank account?NoNoNoNo
Minimum deposit (USD)?US$1,000US$1,000US$1,000US$1,000
Can open US$, €, £ corporate bank account?YesYesYesYes
US$, €, £ corporate visa debit cards available?NoNoNoNo
Country currency controls in place?NoNoYesYes
Corporate ATM card available?YesYesYesYes
How many banks in the country?41162142
WEF bank rating out of 1441101427854
WEF ease of getting credit out of 14412914213733
Employment considerations
Average skilled labour monthly salary?US$300US$3,800US$300US$550
Average unskilled labour monthly salary?US$200US$2,850US$230US$240
Average social contributions (% salaries)?26%11.25%10%5%
Minimum national salary?US$150US$360US$202US$106
Mandatory labour unions?NoNoNoNo
Minimum notice to dismiss employees?2 months1 month1 week1 day
Minimum redundancy indemnity?1 month1 month01 day
Quotas on foreign workers?25%25%YesNo
How long to get work permit approved?6 months6 months4 months4 months
Manufacturing considerations
Electricity prices, (US$ per kWh)?55 cents9 cents20 cents
Rank for getting electricity (by WB)?144/189126/189182/189127/189
Rank for transport infrastructure (by WEF)?125/144144/144133/14465/144
Rank for customs procedures (by WEF)?81/144139/144132/14492/144
Average tariffs on imports?16.80%0%11.70%12.70%
Government incentives for startups?YesYesYesYes
Internet connectivity rating?88/144106/144140/144124/144
Global business efficiency index?131/189188/189169/189108/189
Does the country have maritime access?YesYesYesYes
Logistics considerations
Proximity of seaport in kilometers?4.336.328469
Proximity of airport in kilometers?6.72545.223
Proximity of rail in kilometers?223N/A30.116.7
Computer literacy % of population50%16.50%38%39%
Local purchasing power (GDP per capita)?3,22611,0461,6921,016
Local market size (in USD billions)?271.467.6286.545.1
Average annual inflation rate 2014-15?13.10%9.70%9.20%6.72%
Average unemployment rate 2014-15?12.70%19.50%8.20%40%
Population in millions84.26.1169.344.4
Monthly warehouse rental (per sq. m.)?US$4US$20US$5US$5
Manufacturing space rental (sq. m.)?US$3.5US$10US$5US$5
Can rent office outside free zones?YesYesYesYes
Can the entity hire local staff?YesYesYesYes
Can the entity hire expatriate staff?YesYesYesYes
Free zone work permit fee per personUS$3,950US$3,950US$3,950US$3,950
Estimate of engagement costsUS$US$US$US$
Healy Consultants engagement fees9,75010,37012,9908,750
Company secretary and legal registered office2,4001,1002,1001,100
Estimate of Government registration fees6006,1001,610100
Corporate bank account opening2,9502,9501,8502,950
Estimate of total outgoings in Year 120,60020,37019,40013,750
Draft sales invoice attached

Contact us

For additional information on our Africa company incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon