Burkina Faso company registration

DOING BUSINESS IN BURKINA FASO IN 2018

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Burkina Faso. Our services include i) Burkina Faso company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

Summary table of Burkina Faso company registration

SummaryTax resident LLCFast business setup solutionJoint venture LLCRepresentative officeBranch office
Also known asSociété à Responsabilité LimitéeSociété à Responsabilité LimitéeSociété à Responsabilité LimitéeBureau de représentationSuccursale
Best use of company?All products and servicesClose a customer deal nowRestricted industriesMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?4 weeks3 weeks4 weeks5 weeks5 weeks
How soon can you hire staff?4 weeks3 weeks4 weeks5 weeks5 weeks
How soon can you sign a lease agreement?2 weeks2 weeks2 weeks2 weeks2 weeks
How long to supply corporate bank account numbers?2 months4 weeks2 months2 months2 months
How long to supply company registration / tax numbers?4 weeks3 weeks4 weeks5 weeks5 weeks
Corporate tax rate on annual net profits?27.5%27.5%27.5%Cannot trade27.5%
Limited liability entity?YesYesYesNoNo
Government grants available?YesYesYesNoYes
Government approval required for foreign owners?NoNoNoNoNo
Resident director/partner/manager/ legal representative required?NoNoYesYesYes
Minimum paid up share capital?US$45US$45US$45US$1US$45
Can bid for Government contracts?YesYesYesNoYes
Corporate bank account location?Bank of AfricaAtlantic BankEcobankBSICSociété Générale Burkina Faso
Can secure trade finance?YesYesYesNoYes
VAT payable on sales to local customers?18%18%18%Cannot trade18%
Average total business set up engagement costs?US$14,300Request a proposalRequest a proposalRequest a proposalUS$15,450
Average total engagement period?2.5 months2 months2.5 months3 months3 months

Burkina Faso business setup summary

  • Advantages of Burkina Faso company registration

    Register new company in Burkina Faso - advantages and disadvantages

    1. A limited liability company in Burkina Faso can be incorporated 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 Burkina Faso to complete the process;
    2. The government of Burkina Faso has established a one-stop-shop (CEFORE) for company registration which has greatly reduced the amount of time taken to complete the registration process of a new company in Burkina Faso;
    3. Burkina Faso is a member of the CFA Franc Zone and as a former French colony, the French Treasury guarantees the convertibility of the currency used in the country which is the CFA Franc. The exchange rate has been pegged to the Euro at €1 for CFA Franc 655.957 since 2009. This in turn stabilizes prices and reduces costs on foreign borrowing and lowers transaction costs for investors;
    4. Business setup costs as well as labour costs and other secondary costs such as office space are amongst the lowest in Sub-Saharan Africa, for example the annual average wage in Burkina Faso is US$860;
    5. Burkina Faso has been consistently improving its business environment and is currently the 111th largest export-oriented economy in the world. The economy has structurally transformed and diversified its cotton industry, resulting in an export worth US$506 million of raw cotton in 2016. Moreover, the nation witnesses substantial exports of gold. In 2016, it exported gold worth US$3.02 billion to other nations.
  • Disadvantages of Burkina Faso company registration

    1. Being a landlocked country, Burkina Faso relies mostly on imports travelling through the ports of its neighboring countries. Investors must therefore remember that any issues in neighboring countries that cause delays at ports can have a negative impact on business in Burkina Faso, especially for companies that depend on imports.
    2. French is the national language of Burkina Faso therefore all business documents must be translated into French prior to incorporation of a company and thus language is a barrier for foreign investors when doing business;
    3. Transparency International’s Corruption Perceptions Index 2014 negatively ranks Burkina Faso as 85th least corrupt country meaning corruption is still a widespread problem in Burkina Faso and therefore obtaining necessary licenses to do business is costly and time-consuming. Healy Consultants will be happy to help you handle your administrative requirements;
    4. Corporate tax in Burkina Faso is quite high at the rate of 27.5% on all corporate profits. Branches of foreign companies have to pay an additional 12.5% withholding tax on remittances and VAT is levied at the rate of 18%;
    5. Burkina Faso has been ranked as the 95th freest economy (out of 180 economies) in the 2018 Index of Economic Freedom. This is majorly due to the lack of investment freedom as well as labour freedom of this Sub-Saharan South African nation. Additionally, the government of the nation has a poor fiscal health along with a weak rule of law which further hinders the economy to function freely.

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Contact us

For additional information on our business registration services in Burkina Faso, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
BCEAO Burkina Faso Chamber of Commerce and Industry Burkina Faso Directorate General of Taxes Burkina Faso Ministry of Industry Trade and Handicrafts Burkina Faso National Social Security Fund Burkina Faso House of Companies Cefore