Since 2003, Healy Consultants Group assists our Clients with Guinea-Bissau business set up services, including i) Guinea-Bissau company registration ii) securing Guinea Bissau business licenses iii) multi-currency corporate bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

Guinea-Bissau company registration summary

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• Advantages of Guinea-Bissau company registration

  

  1. Multi-national Clients’ prefer to do business in Guinea-Bissau using a limited liability company (LLC) because the benefits include:
     • 100% foreign ownership allowed.
     • Only one shareholder is required, who can be an individual or company.
     • The directors and shareholders of a Guinea Bissau company do not need to be resident in the country.
     • The required share capital for a new company is approximately €1,525 and is to be deposited during incorporation.
     • Business set up can be completed without our Client having to travel to Guinea-Bissau.
  2. The National Investments Agency actively promotes investment in i) tourism (which has seen substantial growth in recent years) ii) import-export activities iii) telecommunications, especially wireless infrastructure iv) construction v) manufacturing (Guinea-Bissau is rich in natural resources and has a low-cost labour force) vi) livestock vii) fisheries and viii) agribusiness and agri-processing (a strategic priority for the government is to modernise the country’s agricultural sectors).
  3. Guinea-Bissau is rich in industrial minerals and metal ores but output is limited by poor infrastructure and under development. Foreign investors who supply technology and know-how in this field are in high demand in Guinea-Bissau. To attract investment in the above sectors, the Guinea-Bissau government currently promises:
     • Foreign investments receive the equal treatment and protection as local investors.
     • Private investments cannot be seized or nationalised.
     • Profits can be freely repatriated from Guinea-Bissau.
     • Tax breaks of up to 50% for up to six years on eligible projects.
  4. Guinea-Bissau is a signatory to the Organisation for the Harmonisation of African Business Law (OHADA) network of 17 countries. In practical terms, this means Guinea-Bissau companies enjoy smoother cross-border trade between member states.
  5. Guinea-Bissau is situated on the Atlantic coast of West Africa, and with a deep water port in the capital city Bissau, it is well connected to global markets and exports.

• Disadvantages of Guinea-Bissau company registration

  1. Setting up a business in Guinea-Bissau is challenging. Incorporating a company can take up to two months and involves dealing with multiple government departments. The World Bank notes that getting an electricity connection can take nine months. Our Clients should realistically budget one year for their Guinea Bissau business to be fully up and running.
  2. Once the company is set up, Guinea-Bissau is a difficult place in which to do business. For example:
     • Multinational Clients are likely to have difficulty i) registering a property ii) getting credit from local banks and iii) enforcing contracts with local businesses.
     • Despite assurances from the government that foreign and local investors are treated equally, in reality local connections are valuable and settling disputes in local courts is time consuming and frustrating for foreign investors.
     • Guinea-Bissau is considered one of the world’s most corrupt countries. Multinational Clients should expect i) low transparency when bidding for contracts ii) favouritism and iii) cronyism on a daily basis. The country has no anti-corruption agency.
     • Government departments, banks and the business community communicate almost exclusively in Portuguese. Non-Portuguese speakers will find it difficult to get business done in the country, for example, when negotiating contracts and networking. Most foreign business people enter into local joint ventures to enable them to navigate the language and business culture barriers.
     • Almost 50% of the population of Guinea Bissau has received less than a basic education. As a result, skilled labour is in very short supply. On the plus side, labour-intensive industries (such as agriculture and manufacturing) benefit from low wage costs.
     • Only one fifth of the country’s population has an internet connection in 2022. This is a serious constraint to the growth of financial services and e-commerce in Guinea-Bissau.
     • The World Bank describes Guinea-Bissau as one of the world’s most politically unstable countries. In 2009 the then-president was assassinated. Clients setting up a business in Guinea-Bissau must be aware of the inherent risks.
  3. For multi-national Clients’, the Guinea-Bissau market is small and presents limited foreign investment opportunities because:
     • has one of Africa’s smallest, most undeveloped economies. Its GDP is just 0.01% of the global total and with a population of just two million and one of the lowest per capita incomes in the world, it has a very limited domestic consumer market and low demand for retail and consumer goods.
     • The country lacks an investment culture, receiving a meagre US$71.7 million in foreign direct investments in 2019. Any entrepreneurial activity is typically small-scale, and local knowledge is essential to close deals. Some foreign investors enter into local joint ventures to gain a foothold in the market.