| Summary at a Glance |
|
|
|
|
| Total year 1 engagement set up costs? |
US$22,750 |
US$20,370 |
US$25,600 |
US$19,300 |
| Total year 2 costs (incl. audit and tax)? |
US$10,050 |
US$8,150 |
US$10,590 |
US$6,030 |
| Minimum paid-up share capital required? |
US$1,000 |
US$36,000 |
US$61,958 |
US$2 |
| Name of the most popular free zone? |
Alexandria Free Zone |
Zwara Free Trade Zone |
OK Free Trade Zone |
Athi River Export Processing Zone |
| Free zone mostly popular for: |
Manufacture |
Manufacture |
Manufacture |
Manufacture |
| Total engagement period? |
3.5 months |
6 months |
4 months |
4 months |
| Exempt from corporation tax and VAT? |
Yes |
Yes |
Yes |
Yes |
| Our Client must travel? |
Yes |
No |
No |
No |
| Average monthly warehouse rental (per sq. m.)? |
US$4 |
US$2 |
US$5 |
US$5 |
| Manufacturing allowed in the free zone? |
Yes |
Yes |
Yes |
Yes |
| Corporate tax payable |
No |
No |
No |
10 years tax holiday |
| Literacy % of population? |
73.80% |
91% |
59.60% |
78% |
| English language proficiency % of population? |
35% |
20% |
53% |
19% |
| Incorporation Requirements |
|
|
|
|
| Branch office or LLC recommended? |
LLC |
LLC |
LLC |
LLC |
| How long to secure a corporation number? |
4 weeks |
3.5 months |
5 weeks |
3-4 weeks |
| Minimum number of shareholders? |
1 |
1 |
2 |
2 |
| Minimum number of directors? |
1 |
1 |
2 |
1 |
| Resident director required? |
Yes |
Yes |
No |
No |
| Resident representative or agent required? |
No |
No |
No |
No |
| Corporate directors allowed? |
Yes |
Yes |
No |
No |
| Public register of shareholders & directors? |
Yes |
Yes |
Yes |
Yes |
| Special permit or license required? |
Yes |
Yes |
Yes |
Yes |
| Minimum amount of paid-up capital? |
US$1,000 |
US$36,000 |
US$61,958 |
US$2 |
| Fast solution (turnkey) available |
No |
No |
Yes |
No |
| Tax and accounting considerations |
|
|
|
|
| Global sales exempt from corporate tax? |
Yes |
Yes |
Yes |
Yes |
| Local GST or VAT (%)? |
10-25% |
No |
No |
No |
| Tax incentives for manufacturing startups? |
Yes |
Yes |
Yes |
Yes |
| Withholding tax payable on dividends? |
10% |
0% |
0% |
0% |
| Global sales exempt from GST/VAT? |
Yes |
Yes |
Yes |
Yes |
| Average customs tax on imports? |
0% |
0% |
0% |
0% |
| Social contributions payable on employees in FTZ? |
No |
No |
No |
No |
| Corporation tax payable on local sales? |
No |
0% |
0% |
0% |
| Annual audited financial statements required? |
Yes |
Yes |
Yes |
Yes |
| Access to how many double tax treaties? |
56 |
8 |
11 |
10 |
| Bank account characteristics |
|
|
|
|
| Healy Consultants's preferred bank? |
SCB Cairo |
NCB |
SCB Lagos |
SCB Nairobi |
| Do I travel to open the bank account? |
No |
No |
No |
No |
| Minimum deposit (USD)? |
US$1,000 |
US$1,000 |
US$1,000 |
US$1,000 |
| Can open US$, €, £ corporate bank account? |
Yes |
Yes |
Yes |
Yes |
| US$, €, £ corporate visa debit cards available? |
No |
No |
No |
No |
| Country currency controls in place? |
No |
No |
Yes |
Yes |
| Corporate ATM card available? |
Yes |
Yes |
Yes |
Yes |
| How many banks in the country? |
41 |
16 |
21 |
42 |
| WEF bank rating out of 144 |
110 |
142 |
78 |
54 |
| WEF ease of getting credit out of 144 |
129 |
142 |
137 |
33 |
| Employment considerations |
|
|
|
|
| Average skilled labour monthly salary? |
US$300 |
US$3,800 |
US$300 |
US$550 |
| Average unskilled labour monthly salary? |
US$200 |
US$2,850 |
US$230 |
US$240 |
| Average social contributions (% salaries)? |
26% |
11.25% |
10% |
5% |
| Minimum national salary? |
US$150 |
US$360 |
US$202 |
US$106 |
| Mandatory labour unions? |
No |
No |
No |
No |
| Minimum notice to dismiss employees? |
2 months |
1 month |
1 week |
1 day |
| Minimum redundancy indemnity? |
1 month |
1 month |
0 |
1 day |
| Quotas on foreign workers? |
25% |
25% |
Yes |
No |
| How long to get work permit approved? |
6 months |
6 months |
4 months |
4 months |
| Manufacturing considerations |
|
|
|
|
| Electricity prices, (US$ per kWh)? |
5 |
5 cents |
9 cents |
20 cents |
| Rank for getting electricity (by WB)? |
144/189 |
126/189 |
182/189 |
127/189 |
| Rank for transport infrastructure (by WEF)? |
125/144 |
144/144 |
133/144 |
65/144 |
| Rank for customs procedures (by WEF)? |
81/144 |
139/144 |
132/144 |
92/144 |
| Average tariffs on imports? |
16.80% |
0% |
11.70% |
12.70% |
| Government incentives for startups? |
Yes |
Yes |
Yes |
Yes |
| Internet connectivity rating? |
88/144 |
106/144 |
140/144 |
124/144 |
| Global business efficiency index? |
131/189 |
188/189 |
169/189 |
108/189 |
| Does the country have maritime access? |
Yes |
Yes |
Yes |
Yes |
| Logistics considerations |
|
|
|
|
| Proximity of seaport in kilometers? |
4.3 |
36.3 |
28 |
469 |
| Proximity of airport in kilometers? |
6.7 |
25 |
45.2 |
23 |
| Proximity of rail in kilometers? |
223 |
N/A |
30.1 |
16.7 |
| Computer literacy % of population |
50% |
16.50% |
38% |
39% |
| Local purchasing power (GDP per capita)? |
3,226 |
11,046 |
1,692 |
1,016 |
| Local market size (in USD billions)? |
271.4 |
67.6 |
286.5 |
45.1 |
| Average annual inflation rate 2014-15? |
13.10% |
9.70% |
9.20% |
6.72% |
| Average unemployment rate 2014-15? |
12.70% |
19.50% |
8.20% |
40% |
| Population in millions |
84.2 |
6.1 |
169.3 |
44.4 |
| Monthly warehouse rental (per sq. m.)? |
US$4 |
US$20 |
US$5 |
US$5 |
| Manufacturing space rental (sq. m.)? |
US$3.5 |
US$10 |
US$5 |
US$5 |
| Can rent office outside free zones? |
Yes |
Yes |
Yes |
Yes |
| Can the entity hire local staff? |
Yes |
Yes |
Yes |
Yes |
| Can the entity hire expatriate staff? |
Yes |
Yes |
Yes |
Yes |
| Free zone work permit fee per person |
US$3,950 |
US$3,950 |
US$3,950 |
US$3,950 |
| Estimate of engagement costs |
US$ |
US$ |
US$ |
US$ |
| Healy Consultants's engagement fees |
8,950 |
10,370 |
12,990 |
8,750 |
| Company secretary and legal registered office |
2,400 |
1,100 |
3,500 |
2,200 |
| Estimate of Government registration fees |
600 |
6,100 |
1,610 |
100 |
| Corporate bank account opening |
4,950 |
2,950 |
4,950 |
4,950 |
| Estimate of total outgoings in Year 1 |
22,750 |
20,370 |
25,600 |
19,300 |
| Draft sales invoice attached |
View invoice PDF |
View invoice PDF |
View invoice PDF |
View invoice PDF |
