DOING BUSINESS IN GUINEA BISSAU IN 2020
Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Guinea-Bissau. Our services include i) Guinea-Bissau company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
Guinea-Bissau company registration summary
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Advantages of Guinea-Bissau company registration
- A Guinea-Bissau limited liability company (LLC) can be incorporated with just 1 director and 1 shareholder of any nationality. The directors and shareholder can either be and individual or corporate body and do not need to be resident in Guinea-Bissau;
- As a member of OHADA, companies in Guinea-Bissau require 1 million West African CFA Francs of share capital. This currency, which is also used in Benin, Senegal and Togo, is pegged to the Euro, and the capital requirement equates to approximately €1,525;
- Directors and shareholders of a Guinea-Bissau company do not need to travel to the country to complete incorporation. The simplified OHADA business law allows Healy Consultants to assist our Clients with creating the company remotely;
- OHADA membership gives easy access to sixteen African countries through a customs union, many of which share one of two currencies pegged to the Euro at the same rate: the West African CFA Franc and the Central African CFA Franc;
- Another advantage of being a member of OHADA is that Guinea-Bisseau has the same harmonized business law as other member states. This simplifies cross-border trade and makes expansion across the region easy once your business is established in one OHADA country;
- Entrepreneurs looking to invest in sectors of the economy deemed important and vital to the development of Guinea-Bissau such as i) technological knowhow ii) infrastructure development in the rural areas iii) human resources, and iv) environmental protection, will benefit from a 50% corporate income tax exemption for a maximum period of 6 years;
- Guinea-Bissau companies engaged in i) mass production of local products to help curb the need for imported goods, and ii) boost exports of locally made products, benefit from a 10% kickback from the government of the total value exported in the fiscal year for a period of 6 years, increasing early profitability;
- Companies incorporated in Guinea-Bissau are allowed to i) repatriate all their after-tax profits abroad without any restrictions from the government ii) credit their businesses’ capital from any part of the world provided the same is registered with BCEAO, the Central Bank of Guinea-Bissau;
- The Republic of Guinea-Bissau, like most West African countries, is a country rich in industrial minerals and metal ores still in low scale production and any investors keen on tapping into this type of venture will surely find the country an ideal place to setup;
- The tourism sector in Guinea-Bissau is gradually developing. The government is working towards the development and expansion of the tourism industry by including the country’s culture while promoting it. The nation has also started practising eco-tourism and has been declared as one of the “Pre-emerging” nations in terms of Tourism development level by the World Bank.
Disadvantages of Guinea-Bissau company registration
- Although the business setup process in Guinea-Bissau is simplified by the OHADA law, our Clients will encounter some difficulty in doing business locally thanks to slow and extensive licensing procedures. Entrepreneurs should anticipate company formation timelines of at least 15-17 weeks to finish the incorporation of a new company in Guinea-Bissau;
- Incorporating a public limited company (SA) in Guinea-Bissau can be taxing and expensive. In addition to the government fees and tax registration fees involved, a Guinea-Bissau SA requires a minimum paid up share capital of 10 million XOF at incorporation, ten time that required for the LDA private company;
- The national language of Guinea-Bissau is Portuguese, with few locals having a second language like French or English. This makes the country more difficult for foreigners to do business in, given the smaller global population of Portuguese-speakers when compared to the English- and French-speaking worlds;
- The Republic of Guinea-Bissau is one of the poorest economies in the world with i) a GDP of US$1.022 billion, with only 2.5% growth in 2014 ii) Foreign Direct Investments (FDIs) of US$21.5 million and iii) a small population of just 1.7 million;
- Extreme social and political instability has been a major hindrance to economic growth and good business environment in Guinea-Bissau. Civil wars, frequent coups and general unrest in the past 10 years have destablised the country. Top government officials have been assassinated, including the then president in 2009, and a military coup in 2012 has left the social structure and political climate volatile and extremely unpredictable;
- Entrepreneurs looking to establish in Guinea-Bissau should prepare to incur a lot of expenditure and prolonged timelines when setting up. For instance it takes i) at least 4 years and 6 months to enforce a contract ii) at least 1 year and 2 months and US$2,062 to obtain a new electricity connection;
- Guinea-Bissau has faced political instability for years which has been an apparent consequence of a widespread corruption across all the sectors of its economy.
- Time to incorporate: Five weeks
- Cost to set up: Contact us
- Minimum capital: €1,525
- Physical office required: Yes
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 25%
- Corporate tax base: Worldwide
- Shelf companies: Unavailable
- Main company type: LDA
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