DOING BUSINESS IN BURKINA FASO
Since 2003, Healy Consultants has assisted our Clients with business registration in Burkina Faso. Our services include i) Burkina Faso company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
Advantages of Burkina Faso company registration
- A limited liability company in Burkina Faso can be incorporated with a minimum of one shareholder and one director of any nationality. The minimum paid-up capital required for incorporation is US$2,000 and our Client will not have to travel to Burkina Faso to complete the process;
- The government of Burkina Faso has established a one-stop-shop (CEFORE) for company registration which has greatly reduced the amount of time taken to complete the registration process of a new company in Burkina Faso;
- Burkina Faso is a member of the CFA Franc Zone and as a former French colony, the French Treasury guarantees the convertibility of the currency used in the country which is the CFA Franc. The exchange rate has been pegged to the Euro at €1 for CFA Franc 655.957 since 2009. This in turn stabilizes prices and reduces costs on foreign borrowing and lowers transaction costs for investors;
- Business setup costs as well as labour costs and other secondary costs such as office space are amongst the lowest in Sub-Saharan Africa, for example the annual average wage in Burkina Faso is US$860.
Disadvantages of Burkina Faso company registration
- Being a landlocked country, Burkina Faso relies mostly on imports travelling through the ports of its neighboring countries. Investors must therefore remember that any issues in neighboring countries that cause delays at ports can have a negative impact on business in Burkina Faso, especially for companies that depend on imports.
- French is the national language of Burkina Faso therefore all business documents must be translated into French prior to incorporation of a company and thus language is a barrier for foreign investors when doing business;
- Transparency International’s Corruption Perceptions Index 2014 negatively ranks Burkina Faso as 85th least corrupt country meaning corruption is still a widespread problem in Burkina Faso and therefore obtaining necessary licenses to do business is costly and time-consuming. Healy Consultants will be happy to help you handle your administrative requirements;
- Corporate tax in Burkina Faso is quite high at the rate of 27.5% on all corporate profits. Branches of foreign companies have to pay an additional 12.5% withholding tax on remittances and VAT is levied at the rate of 18%.