Business entities in Central African Republic in 2023
Since 2003, Healy Consultants provides our Clients with the best corporate structures for business in Central African Republic. There are several ways of doing business in Central African Republic, the most common being the setting up of a limited liability company (SARL). Alternatively, entrepreneurs have an option of establishing a public limited company (SA). Foreign legal entities may also set up a branch office or a representative office in the Central African Republic.
The Central African Republic limited liability company (SARL)
- The Central African Republic LLC is the most preferred legal entity used by entrepreneurs setting up businesses in Central African Republic. A LLC requires only 1 individual director and 1 shareholder, who can either be an individual or a legal entity. The director and shareholder can both be of any nationality and can be resident of any country. A US$1,800 (FCFA 1 million) minimum paid-up share capital is also required to complete the incorporation process;
- After Central African Republic business setup, this entity is only required to appoint a statutory auditor if its share capital is above US$18,000 or if either i) its annual turnover exceeds US$45,000 or ii) employs more than 50 employees.
The Central African Republic public limited company (SA)
- The Central African Republic PLC requires at least 1 shareholder who can either be individuals or corporate body to be incorporated. A PLC is mostly preferred by entrepreneurs planning to setup large investments in Central African Republic;
- The SA requires a paid up share capital of at least US$18,000 to be incorporated. A statutory auditor must also be appointed upon Central African Republic company setup.
The Central African Republic branch
The Central African Republic Companies Law allows foreign companies looking to establish permanent entities in Central African Republic to open branches in the country. The scope of operations for a branch office is defined by the parent company. The branch must appoint at least 1 representative of any nationality to act as the company’s representative in Central African Republic.
The Central African Republic representative office
A Central African Republic representative office is not considered a legal entity and is not allowed to conduct any profit making activities in Central African Republic. A rep office must appoint at least one representative. This entity only has the authority to carry out promotional activities and market products and services of the parent company within Central African Republic.
Comparison table between Central African Republic business entities
| LLC | PLC | Branch office | Rep office | |
|---|---|---|---|---|
| Also known as | SARL | SA | succursale | bureau de représentation |
| How long to set the company up? | 19 weeks | 20 weeks | 20 weeks | 18 weeks |
| How long to open company bank account? | 6 weeks | 6 weeks | 6 weeks | 6 weeks |
| Legal liability? | Limited | Limited | Unlimited | Unlimited |
| Wholly foreign owned? | Yes | Yes | Yes | Yes |
| Minimum share capital? | US$1,800 | US$18,000 | US$1 | US$1 |
| File annual tax return? | Yes | Yes | Yes | No |
| Tax registration certificate required? | Yes | Yes | Yes | No |
| Recommended corporate bank account? | Ecobank | Commercial Bank Centrafrique | Ecobank | Ecobank |
| Does our Client need to travel? | No | No | No | No |
| Resident director required? | No | No | No | No |
| Resident shareholder required? | No | No | No | No |
| Minimum directors allowed? | 1 | 1 | 1 | 1 |
| Minimum shareholders? | 1 | 1 | 1 | 1 |
| Tax identification code (TIN) needed? | Yes | Yes | Yes | No |
| Corporate shareholders allowed? | Yes | Yes | Yes | Yes |
| Corporate director(s)/representatives allowed? | No | No | No | No |
| Central African Republic corporate tax rate? | 30% | 30% | 30% | 0% |
| Annual financial statements required? | Yes | Yes | Yes | No |
| Statutory audit required? | No | Yes | No | No |
| Regulated by? | Chamber of Commerce | Chamber of Commerce | Chamber of Commerce | Chamber 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 Central African Republic? | Yes | Yes | Yes | Yes |
| Can buy Central African Republic property? | Yes | Yes | Yes | No |
| Can own equity in other Central African Republic companies? | Yes | Yes | Yes | No |
| Total Central African Republic business setup costs in Yr. 1 | US$15,100 | US$17,100 | US$16,100 | US$14,150 |
| Subsequent annual costs (incl. accounting and tax fee) | US$7,450 | US$9,450 | US$8,450 | US$7,450 |
| Sample engagement invoice | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF |
