DOING BUSINESS IN SENEGAL
Since 2003, Healy Consultants has assisted our Clients with forming companies in Senegal. Our services include i) Senegal business registration ii) government license registration iii) corporate bank account opening services in Senegal and abroad iv) employee recruitment strategies v) visa strategies and vi) Senegal office rental solutions.
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Advantages and disadvantages
Advantages of Senegal company registration
- It is possible to register a limited liability company in Senegal (SARL) 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 Senegal for the company formation procedures;
- Business operation costs are low in Senegal because i) the average monthly salary of the staff in Senegal is US$190 according to the World Bank ii) office space annual rent is approximately US$8 per square foot and iii) business between Senegal and neighboring countries is easily facilitated by road, rail, sea and air;
- Senegal is one of the most politically and stable democracies in Africa providing entrepreneurs a safe business environment in which to setup businesses;
- Our Clients registering a Senegal company exporting over 80% of its products abroad can benefit from the Free Export Enterprise status granting them tax advantages including i) reduced corporate tax rate of 15% ii) tax exemption on employees’ wages, registration fees and stamp duty and iii) tax exemption on production equipment and raw materials.
Disadvantages of Senegal company registration
- Corporate tax in Senegal is high and local business are subject to a standard rate of 30%. Branches of foreign companies have to pay an additional 10% withholding tax on remittances;
- French is the national language of Senegal therefore all business documents must be translated into French prior to incorporation of a company. For our non-French speaking Clients, language can also be a barrier when doing business in Senegal;
- Our Clients will suffer from red tape when running their business and dealing with government officials. Senegal is indeed one of the most challenging business environments in the world and is negatively ranked 161st out of 189 economies by the World Bank ease of doing business survey 2015;
- Bureaucracy, lack of transparency and corruption make company incorporation in Senegal burdensome and costly. Obtaining necessary licenses to do business is time-consuming. Healy Consultants will be happy to help you handle your administrative requirements;
- Routine power outages culminate into major sales losses for investors. Therefore entrepreneurs who would like to do business in Senegal must consider investing in generators and this has cost implications on the business.
Best uses for a Senegal company
West African distribution hub: Senegal is an ideal location to setup a headquarters for business in Africa as the country i) is connected by an extensive road network, the Trans-African Highway and ii) benefits from the best harbor infrastructures in West Africa.
The port of Dakar is indeed used by all businesses based in West Africa’s landlocked countries receiving their shipments. Our Clients will find this particularly advantageous for movement of goods within Africa as well as to and from Europe, which will boost their sales abroad.
- Headquarters for Francophone African business: As one of the more stable and investment-friendly French-speaking countries in Africa, Senegal is a great choice of domicile for a business serving Africa’s former French and Belgian colonies.
- Time to incorporate: Four weeks
- Cost to set up: US$17,600
- Minimum capital: US$2,000
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 30%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: SARL