Business entities in Senegal
Healy Consultants will assist our Clients with setting up the optimal corporate structure in Senegal for their business objectives. There are several ways of doing business in Senegal, the most common being the setup of a Senegal limited liability company (also known as a SARL in Senegal). Foreign entrepreneurs may also opt to set up a public limited company, a branch office or a representative office.
The Senegal limited liability company (SARL)
- The Senegal limited liability company (LLC, locally known as SARL) must appoint at least 1 director and 1 shareholder who can be of any nationality. The minimum paid-up share capital required for Senegal business setup is US$2,000;
- The Senegal LLC must maintain its books of accounts in French at its registered office in Senegal. The accounts must be maintained according to the OHADA system. Senegal LLCs are also required to appoint a statutory auditor and to submit annual audited financial statements.
The Senegal public limited company (Société anonyme – SA)
- The Senegal public limited company (PLC), locally known as a SA, requires a minimum capital of US$20,000 for Senegal company setup. At least 1 shareholder and 1 director must be appointed, whom can be of any nationality;
- Like LLCS, the Senegal PLC’s books of accounts must be maintained in French at its registered office in Senegal. The accounts must be maintained according to the OHADA system of accounting. Annual financial statements must be prepared and an audit must be submitted every year. A Senegal PLC must also appoint an approved auditor.
The Senegal branch (Succursale)
A Senegal branch office can be 100% foreign owned. The scope of operations for this entity will be defined by the parent company. Also, the branch office must have a registered office in Senegal as well as a resident agent appointed by the company to receive summons, notices etc. on behalf of the company.
The Senegal representative office (Bureau de représentation)
While the Senegal representative office can be 100% foreign owned, it is not allowed to carry out any income generating activities in Senegal. All expenses of the representative office are required to be met through inward foreign currency remittances. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company. Similarly to a branch, the parent company of a representative office must also appoint a representative ordinarily resident in Senegal.
Table of comparison between Senegal entities
|Also known as:||SARL||SA||Succursale||Bureau de représentation|
|How long to set the company up?||4 weeks||5 weeks||4 weeks||4 weeks|
|How long to open company bank account?||4 weeks||4 weeks||4 weeks||4 weeks|
|Wholly foreign owned?||Yes||Yes||Yes||Yes|
|Minimum paid - up share capital?||US$2,000||US$20,000||US$1||US$1|
|File annual tax return?||Yes||Yes||Yes||No|
|Tax registration certificate required?||Yes||Yes||Yes||No|
|Recommended corporate bank account?||BICIS||Ecobank||Bank Of Africa||UBA|
|Does our Client need to travel?||No||No||No||No|
|Resident director or representative required?||No||No||Yes||Yes|
|Resident shareholder required?||No||No||No||No|
|Minimum directors allowed?||1||1||1||1|
|Tax identification code needed?||Yes||Yes||Yes||Yes|
|Senegal resident corporate agent required?||Yes||Yes||Yes||No|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed?||Yes||Yes||Yes||Yes|
|Statutory audit required?||Yes||Yes||Yes||No|
|Senegal corporate tax rate?||30%||30%||30%||0%|
|Annual financial statements required?||Yes||Yes||Yes||No|
|Regulated by?||Ministry of Commerce||Ministry of Commerce||Ministry of Commerce||Ministry of Commerce|
|Allowed to issue sales invoices?||Yes||Yes||Yes||No|
|Allowed to sign contracts?||Yes||Yes||Yes||No|
|Allowed to import and export goods?||Yes||Yes||Yes||No|
|Can rent an office space in Senegal?||Yes||Yes||Yes||Yes|
|Can buy Senegal property?||Yes||Yes||Yes||No|
|Total Senegal business setup costs in yr. 1?||US$17,600||US$18,600||US$18,950||US$19,650|
|Subsequent annual costs (incl. accounting and tax fee)?||US$6,400||US$6,400||US$6,400||US$6,400|
|Sample engagement invoice?|