DOING BUSINESS IN MALI IN 2020
Since 2003, Healy Consultants Group PLC has assisted our Clients with starting business in Mali. Our corporate services include i) Mali business registration ii) government license registration iii) corporate bank account opening services in Mali and abroad iv) employee recruitment v) visa strategies and vi) office rental solutions in Mali.
Summary table of Mali company registration
|Summary||Tax resident LLC||Fast business setup solution||Representative office||Branch office|
|Also known as||SARL||SARL||Bureau de representation||Succursale|
|Best use of company?||All products and services||Close a customer deal now||Marketing & research||Specific projects|
|How soon can you invoice Clients/sign sales contracts?||4 weeks||2 weeks||Cannot trade||4 weeks|
|How soon can you hire staff?||4 weeks||2 weeks||4 weeks||4 weeks|
|How soon can you sign a lease agreement?||1 week||1 week||1 week||1 week|
|How long to supply corporate bank account numbers?||6 weeks||4 weeks||6 weeks||6 weeks|
|How long to supply company registration / tax numbers?||4 weeks||2 weeks||4 weeks||4 weeks|
|Corporate tax rate on annual net profits?||35%||35%||None||35%|
|Limited liability entity?||Yes||Yes||No||No|
|Government grants available?||Yes||Yes||No||Yes|
|Government approval required for foreign owners?||No||No||No||No|
|Resident director/partner/manager/ legal representative required?||No||No||No||No|
|Minimum paid up share capital?||US$45||US$45||None||US$45|
|Can bid for Government contracts?||Yes||Yes||No||Yes|
|Corporate bank account location?||Bank of Africa (BOA)||Mali Development Bank (BDM)||International Bank for Mali (BIM)||BICIM (BNP Paribas)|
|Can secure trade finance?||Yes||Yes||No||Yes|
|VAT payable on sales to local customers?||18%||18%||None||18%|
|Average total business set up engagement costs?||US$20,050||US$48,910||US$21,300||US$21,250|
|Average total engagement period?||3 months||2 months||3 months||3 months|
Mali business setup summary
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Advantages and disadvantages
Advantages of Mali company registration
- A Malian limited liability company can be incorporated within 1 month with only 1 shareholder and 1 director, whom can be of any nationality, and a minimum share capital of US$11,000;
- Mali offers many investment opportunities for foreign companies willing to venture its market, as demonstrated by a growth rate expected to reach 5% in 2020, according to the International Monetary Fund;
- The local Government offers the following tax advantages to foreigners willing to invest in Mali:
- Business setup by foreign entrepreneurs benefit from generous government incentives in Mali including i) tariff exemption on all imports for up to 3 years ii) corporate and trading tax exemption during up to 8 years and iii) up to 30 years of tax exemption in Mali’s Free Trade Zones, provided such companies sell 20% of their products locally;
- Foreign entrepreneurs setting up a Mali-based processing company benefit from 2 to 8 years of exemption from i) license tax ii) company tax iii) corporate tax and iv) property tax, provided 60% of the processed raw materials are from Mali;
- All companies incorporated in Mali can enjoy the benefits of i) reduced trade barriers; ii) a harmonised monetary policy and iii) an access to the dynamic consumer market of Africa. This is due to Mali’s membership in the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU).
Disadvantages of Mali company registration
- Our Clients often find that complying with Mali’s regulation can often turn into a nightmare. Mali is indeed ranked as the 12th worst regulated country in the world by the World Bank. Mali is also the 66th most difficult place in the world for starting a business;
- A Mali-based business will often suffer from a tremendous number of pirated versions of their products. There are no enforceable legal recourse against this problem, as Mali has no regulation governing copyright issues;
- Our Clients won’t be able to find easily literate employees in Mali. Only one third of Malian people have completed a high school degree. Less than 7% of them pursue higher education;
- Although companies formed in Mali are often given tax exemptions during their starting years, a business in Mali will later suffer high taxes, representing an average 53% of its net profits due to i) a corporate tax rate of 35% ii) Social security contributions of 35% of gross salaries and iii) a VAT of 18%;
- The Malian government has made starting a business in Mali more difficult by ceasing to publish online notices of the newly incorporated companies. Healy Consultants will be pleased to assist our Clients by phoning directly the relevant Malian administration;
- Beginning from 2018, there has been a substantial reduction in the confidence of foreign entrepreneurs willing to invest in Mali due to the heightened socio-political tension caused by regional disputes and security issues in the country. These issues are further posing major risks to businesses as well as individuals.
Best uses for a Mali company
- Mali is an attractive place for companies with activities in agriculture, notably cotton. This is commonly the main industry chosen by foreigners willing to register a company in Mali.
- Time to incorporate: Four weeks
- Cost to set up: US$18,050
- Minimum capital: US$1,700
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 35%
- Corporate tax base: Territorial
- Shelf companies: No
- Main company type: SARL
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Useful links for Mali