DOING BUSINESS IN EQUATORIAL GUINEA
Since 2003, Healy Consultants has assisted our Clients with forming their company in Equatorial Guinea. Our services include i) Equatorial Guinea business registration ii) government license registration iii) corporate bank account opening services in Equatorial Guinea iv) recruitment services v) visa strategies and vi) office rental solutions.
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Advantages and Disadvantages
Advantages of Equatorial Guinea company registration
- Registration of a limited liability company (LLC) in Equatorial Guinea requires i) a minimum of one shareholder and one director of any nationality and ii) minimum paid-up capital of US$2,000. Our Client will not have to travel to Equatorial Guinea to complete the process;
- The tax regime in Equatorial Guinea allows new companies to have the opportunity to benefit from tax holidays on corporate income tax during up to 15 years;
- Equatorial Guinea has experienced a tremendous boom in oil and gas production and is ranked as the 6th largest oil producer in Africa producing about 346,000 barrels of oil per day. This explains why the country’s economy is the relatively more developed than its neighbors’, with the second highest GDP per capita within Subtropical Africa;
- Equatorial Guinea is in the process of development and therefore there is need for i) technical support ii) training of local workers iii) consumer goods iv) infrastructure development in order to improve the standard of living of the entire country;
- Equatorial Guinea is a member of the Central African Economic and Monetary Community (CEMAC) which promotes cooperation and business among member countries. Repatriation of funds and profits among member states is not subject to restrictions and does not require any prior government approval;
Disadvantages of Equatorial Guinea company registration
- Corporate tax in Equatorial Guinea is high at the rate of 35% on all corporate profits. VAT is levied at the rate of 18%;
- Foreigners forming a company in Equatorial Guinea will face the typical difficulties encountered by Subtropical Africa businesses, including:
- Businesses formed in Equatorial Guinea suffer from a lack of business opportunities due to a population of less than 1 million inhabitants. 60% of them furthermore live in the countryside;
- In spite of the oil boom in Equatorial Guinea, 60% the population lives below poverty line and hence cannot afford to buy imported products;
- The local administration is very inefficient and corrupt. According to the World Bank, it takes for instance an average of 5 months to start a business in Equatorial Guinea;
- There are only three banks in Equatorial Guinea and they are controlled by the government. Entrepreneurs are unable to access financing due to high interest rates and lack of loan facilities.
- The national language of Equatorial Guinea is French. All business documents are therefore required must be translated into this language prior to incorporation. As most of the population is French-speaking, investors will also encounter communication problems with employees as well as Clients and suppliers when running their business in Equatorial Guinea.
- Time to incorporate: Four months
- Cost to set up: US$20,200
- Minimum capital: US$2,000
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 35%
- Corporate tax base: Worldwide
- Shelf companies: Unavailable
- Main company type: LLC