DOING BUSINESS IN GABON IN 2023
Since 2003, Healy Consultants Group PLC has assisted our Clients with starting companies in Gabon. Our services include i) Gabon business registration ii) government license registration iii) Gabon corporate bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
| Compare different Gabon entities | LLC | Fast solution LLC | Free zone LLC | Public limited company | LLP | Representative office | Branch office |
|---|---|---|---|---|---|---|---|
| Also known as | SARL | Fast solution LLC | SEZ LLC | SA | SCS | Bureau de Liaison | Succursale |
| Best use of company? | All products and services | All products and services | Manufacturing and export trading | To secure public funding | Professional services | Marketing & research | Specific projects |
| How soon can you invoice Clients/sign sales contracts? | 3 months | 1 week | 4 months | 3 months | 3 months | No | 2 months |
| How soon can you hire staff? | 3 months | 1 week | 4 months | 3 months | 3 months | 2 months | 2 months |
| How soon can you sign a lease agreement? | 1 month | 1 week | 1 month | 1 month | 1 month | 1 month | 1 month |
| How long to supply corporate bank account numbers? | 4 months | 1 week | 5 months | 4 months | 4 months | 3 months | 3 months |
| How long to supply company registration/tax numbers? | 3 months | 1 week | 4 months | 3 months | 3 months | 2 months | 2 months |
| Corporate tax rate on annual net profits? | 30% | 30% | 0% (for 10 years) | 30% | 0% | 0% | 30% |
| Limited liability entity? | Yes | Yes | Yes | Yes | Yes | No | No |
| Government grants available? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Government approval required for foreign owners? | No | No | Yes | No | No | No | No |
| Resident director/partner/manager/ legal representative required? | No | No | No | No | No | Yes | Yes |
| Minimum paid up share capital? | US$1,700 | US$1,700 | US$1,700 | US$17,000 | none | None | none |
| Can bid for government contracts? | Yes | Yes | Yes | Yes | Yes | No | No |
| Corporate bank account location? | BGFI Bank | Citibank | Ecobank | UBA | BGFI Bank | Citibank | Ecobank |
| Can secure trade finance? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| VAT payable on sales to local customers? | 18% | 18% | 18% | 18% | 18% | None | 18% |
| Average total business set up engagement costs? | US$17,415 | US$33,265 | US$23,125 | US$17,415 | US$18,815 | US$18,165 | US$19,815 |
| Average total engagement period? | 5 months | 6 months | 6 months | 5 months | 5 months | 4 months | 4 months |
| Accounting and tax considerations | LLC | Fast solution LLC | Free zone LLC | Public limited company | LLP | Representative office | Branch office |
|---|---|---|---|---|---|---|---|
| Statutory corporate tax payable? | 30% | 30% | 0% (for 10 years) | 30% | 0% | 0% | 30% |
| Legally tax exempt if properly structured? | No | No | Yes | No | No | Yes | No |
| Group HQ tax incentives? | Yes | Yes | Yes | Yes | Yes | No | No |
| Must file an annual tax return? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Must appoint an auditor? | No | No | Yes | Yes | No | No | No |
| Access to double taxation treaties? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Withholding tax on payments to foreign shareholders/parent? | 20% | 20% | 0% | 20% | 20% | None | 15% |
| Company Registration | LLC | Fast solution LLC | Free zone LLC | Public limited company | LLP | Representative office | Branch office |
| Resident director/partner/manager/ legal representative required? | No | No | No | No | No | Yes | Yes |
| Minimum number of shareholders/partners? | 1 | 1 | 1 | 1 | 2 | Parent company | Parent company |
| Maximum shareholding for foreigners? | 100% | 100% | 100% | 100% | 99% | 100% | 100% |
| Minimum statutory paid up share capital? | US$1,700 | US$1,700 | US$1,700 | US$17,000 | none | none | none |
| Security deposit to be kept with government? | No | No | No | No | No | No | No |
| Shelf companies available? | Yes | No | No | Yes | No | No | No |
| Time to incorporate a new entity? | 3 months | None | 4 months | 3 months | 3 months | 2 months | 2 months |
| Can easily convert to a PLC? | Yes | Yes | Yes | Yes | No | No | No |
| Can have preference shareholders? | Yes | Yes | Yes | Yes | No | No | No |
| The entity will likely be regulated by? | CDE | CDE | AAN | CDE | CDE | CDE | CDE |
| Business Considerations | LLC | Fast solution LLC | Free zone LLC | Public limited company | LLP | Representative office | Branch office |
| Good entity for trademark registration? | Yes | Yes | Yes | Yes | Yes | No | No |
| Can secure an import and export license? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Sponsorship by a local citizen required? | No |
| Our Client needs to travel to Gabon for business set up? | No |
| Temporary physical office solutions available? | Yes |
| You need a local resident as bank signatory? | No |
| Can be wholly foreign owned? | Yes |
| Minimum number of directors/managers? | 1 |
| Monthly VAT reporting to the government? | No |
| Must sign an office lease agreement during incorporation? | No |
| Shareholders & directors documents to be attested/translated? | No |
| Each foreign director needs a personal income tax number? | No |
| Foreign director needs a residence visa? | Yes |
| Maximum number of staff allowed? | No maximum number for any entity |
| Expatriate to local staff ratio? | None |
| Can secure residence visa for business owner? | Yes |
| Public register of shareholders and directors? | Yes |
| Other useful information | |
| What will be included in my customer sales invoice? | Click link |
| This country has signed free trade agreements? | Yes |
| This country is a member of WIPO/TRIPS? | Yes - only WIPO |
| This country is a member of the ICSID? | Yes |
| Average custom duties suffered? | 18% |
| Government foreign investment approval required? | No |
| Average monthly office rental? (US$ per sq m) | US$30 |
| Minimum statutory monthly salary? | US$255 |
| Average monthly US$ salary for local skilled employees? | US$710 |
| US$ deposit interest rate? (1 year average) | 2.45% |
| Overseas remittance currency controls? | Yes |
| Banking considerations | |
| Multi-currency bank accounts available? | Yes |
| Corporate visa debit cards available? | No |
| Quality of e-banking platform? | Poor |
| Crowd funding available in this country? | No |
Gabon business setup summary
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Advantages and Disadvantages
Advantages of Gabon company registration
- A limited liability company (locally known as an SARL) can be registered in Gabon by appointing only i) one shareholder and ii) one director, who both can be foreigners and do not need to be residing in Gabon. The minimum paid-up capital required to register the Gabonese company is only US$1,700 (CFA1 million);
- Gabon is a good place to start a company in the agribusiness or forestry industry because:
- Gabon benefits from more than 2 million hectares of land not yet exploited but available for foreign investors. The country is notably a significant producer of coffee, cocoa, rubber and palm oil;
- Gabon also offers more than 12 million hectares of forest available for the forestry industry. 85% of the country’s territory is covered by forest;
- Companies running agro-forestry operations in Gabon will benefit from low labor costs in Gabon, as average salaries only reach US$839 per month and tend to be much lower in rural areas of the country. The minimum monthly salary is also set at only US$250 (CFA150,000);
- Companies exporting their products from Gabon to the European Union, the United States, Japan and other developed markets will benefit from preferential treatment and reduced/no custom duties, as Gabon is included amongst the countries benefiting from these countries’ generalized system of preferences;
- For all the reasons listed above, global experts such as the Oxford Business Group expect the agro-forestry industry to grow at an annual rate averaging 6% over the coming years, offering business opportunities to foreign investors.
- Gabon’s Special Economic Zones offer companies 100% exemption from i) withholding tax ii) value added tax iii) property tax and iv) import duties for up to 25 years. Furthermore, companies can be granted a 100% exemption from corporate tax for up to 10 years;
- There are neither exchange nor capital controls in Gabon. It is also possible to open a corporate bank account in Gabon in a foreign currency, such as the US dollar or the Euro;
- Gabon is the 5th largest producer of oil in Africa. Its economy is largely dependent on oil and manganese production as well as their export. The economy exported a total of US$3.6 million worth of petroleum products and US$4.1 million worth of manganese in 2017.
Disadvantages of Gabon company registration
- It is mandatory to sign a lease agreement in Gabon before incorporation of a Gabonese company. Our Firm can assist you to comply with the same;
- The managing director of the company will have to travel to complete corporate bank account opening in Gabon, which is mandatory before company formation. We can however find legal turnaround solutions for this requirement;
- Gabon is a small market, with a population of only 1.7 million. Running a company in Gabon is difficult, due to corruption, lack of transportation infrastructure and widespread corruption. The country is indeed ranked at the 27th most difficult place to start and run a business by the World Bank;
- It is costly and time consuming to export merchandise from Gabon: exporting a container costs on average over US$2,000;
- French is the official language in Gabon. Hence, it is important that non-French speaking entrepreneurs hire a translator to deal with Clients, suppliers and customers;
- Electricity costs in Gabon are high, with the average tariff rate being US$0.45 per Kwh;
- Gabon’s economy is overdependent on oil for its economic growth which is further leading to a poor fiscal condition of its economy due to an ever-increasing tax burden.
Best uses for a Gabon company
- Most companies formed in Gabon by foreigners are mining or agro-forestry businesses, thanks to the country’s endowment in natural resources.
