Since 2003, Healy Consultants Group 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.

Senegal company registration summary

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• Advantages and disadvantages

  Advantages of Senegal company registration

  

  1. With expert assistance, establishing a company in Senegal can be simple and straightforward because:
     • It is possible to register a limited liability company in Senegal (SARL) with a minimum of one shareholder and one director of any nationality, who do not need to be resident in Senegal;
     • For SARL (LLC) setup in Senegal, there is no minimum paid-up capital requirement, even when the entity is foreign-owned. However the “norm” is 1,000,000 F CFA (US$1,900);
     • Healy Consultants Group can assist out Client to establish the company from A to Z without our Client having to travel to Senegal to complete company formation procedures;
     • Our Clients can sign company incorporation documents overseas. The documents do not need to be attested or legalised at the Senegalese Embassy in the Client’s country of domicile;
     • Clients setting up a branch or subsidiary in the country must translate parent company documents into French. Translations can be done directly in Senegal.
  2. Foreign investors and entrepreneurs find doing business in Senegal competitive because:
     • Business operation costs are low in Senegal. For example i) the average monthly salary in Senegal is US$150 ii) annual office rents are approximately US$8 per square foot and iii) business and trade between Senegal and neighbouring countries is facilitated by good road, rail, sea and air links;
     • Senegal is one of Africa’s most politically and stable democracies. Entrepreneurs find a safe environment in which to set up businesses;
     • Senegal companies qualifying for Free Export Enterprise status and exporting over 80% of their products can benefit from various tax advantages including i) reduced corporate tax rate of 15% ii) tax exemption on registration fees, stamp duty and employee wages tax, and iii) tax exemption on production equipment and raw materials;
     • Companies investing more than XOF100million (approximately US$170,000) in various sectors under The Investment Code benefit from tax incentives including i) exemption from custom duties and ii) VAT suspension for at least three years;
     • Companies established in special economic zones in Senegal also benefit from i) reduced corporate income tax rate of 15% ii) exemption of import and export duties.
  3. Clients looking to set up in Senegal for specific projects not generating income in Senegal can register their project with the Tax Office without setting up a company.

  Disadvantages of Senegal company registration

  1. Clients setting up companies in Senegal face the following challenges:
     • Corporate tax in Senegal is high. Local business are subject to a standard rate of 30%, and 18% VAT. Branches of foreign companies must pay an additional 10% withholding tax on foreign remittances;
     • French is Senegal’s national language. All business documents must be translated into French prior to company incorporation. Non-French speakers can face language barriers when doing business in Senegal;
     • Transport infrastructure in Senegal and the region can be a barrier to trade. It is relatively expensive for companies to carry out intra-ECOWAS trade, as well as to trade within and outside Senegal;
     • Bureaucracy, lack of transparency and corruption in obtaining necessary licenses in certain lucrative businesses sectors such as oil and gas can be costly and time consuming. Healy Consultants Group will be happy to help you handle your administrative requirements;
     • Routine power outages can mean sales losses for investors. Entrepreneurs doing business in Senegal must consider investing in generators, which adds operational costs.
  2. Before approving Senegal company setup, the government requires all foreign directors to supply an extract of a police clearance report.
  3. US$ bank accounts are not an option for companies registered in Senegal, except for diplomatic missions and larger organisations with an HQ agreement with the Senegalese government.
  4. Senegal branches of foreign companies can only exist for a maximum of two years. Thereafter, it is a statutory requirement to convert such entities into a subsidiary LLC.
  5. Local legislation requires that all domestic transactions be done in local currency (the West African CFA Franc).
  6. Because of the above, companies are seldom allowed to have foreign currency accounts in Senegal. The request must be made to the Central Bank and approval is usually granted only to consulates/embassies and multinational companies and global NGOs which have special agreements with the government.

• Best uses for a Senegal company

  1. As a West African distribution hub. While regional transport infrastructure is inefficient, Senegal has some of the best harbour facilities in West Africa. For example, the port of Dakar is used by landlocked West African countries to receive shipments;
  2. As a Francophone Africa headquarters: 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.