DOING BUSINESS IN NIGER IN 2020
Since 2003, Healy Consultants Group PLC has assisted our Clients with starting companies in Niger. Our services include i) Niger business registration ii) assistance to secure government licenses iii) Niger corporate bank account opening services iv) employee recruitment v) work visa strategies and vi) office rental solutions in Niger.
Summary table of Niger company registration
|Summary||Tax resident LLC||Fast business setup solution||Representative office||Branch office|
|Also known as||SARL||SARL||Bureau représentatif||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?||3 weeks||2 weeks||Cannot trade||5 weeks|
|How soon can you hire staff?||3 weeks||2 weeks||5 weeks||5 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?||5 weeks||3 weeks||5 weeks||5 weeks|
|How long to supply company registration/tax numbers?||3 weeks||2 weeks||5 weeks||5 weeks|
|Corporate tax rate on annual net profits?||30%||30%||Cannot trade||30%|
|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||Yes||No|
|Minimum paid up share capital?||US$170||US$170||US$1||US$1|
|Can bid for Government contracts?||Yes||Yes||No||Yes|
|Corporate bank account location?||Bank of Africa||Atlantic Bank||Sonibank||Ecobank|
|Can secure trade finance?||Yes||Yes||No||Yes|
|VAT payable on sales to local customers?||19%||19%||Cannot trade||19%|
|Average total business set up engagement costs?||US$18,950||Request a proposal||Request a proposal||Request a proposal|
|Average total engagement period?||2 months||6 weeks||2.5 months||2.5 months|
Niger business setup summary
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Advantages and disadvantages
Advantages of Niger company registration
- It is possible to start a limited liability company in Niger with a minimum of i) one shareholder and ii) 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 Niger to complete the process;
- Niger has a lot of unexploited natural resources which include uranium, oil and gold. The government encourages foreign investors interested in the mining industry to set up businesses in Niger and explore and develop the potential. There are no restrictions as to what industry a foreign entrepreneur can invest;
- Niger business setup costs as well as labor costs and other operating costs, such as the cost of renting office space, are amongst the lowest in the Sahel region. For example the monthly average wage in Niger is US$51;
- Agriculture, livestock farming, and related businesses are amongst one of the key attractive sectors for doing business in Niger. This is significantly due to i) availability of 15 million hectares of fertile land; ii) presence of a young and dynamic agricultural workforce; and iii) the nation’s potential for valorising and exporting of meat and leather products. Moreover, the Hydro-agricultural projects in the Niger River valley has attracted numerous large-scale agribusiness companies in the country.
Disadvantages of Niger company registration
- Apart from being one of the poorest countries in the world with ¾ of the population living in rural area and relying mostly on subsistence farming, Niger is prone to natural catastrophes which include extreme weather conditions such as severe drought or destructive flooding. The country also experiences locust plagues which leave behind massive destruction of crops. These factors reduce foreign investment significantly and negatively impacts the country’s economy and living conditions of its population;
- Niger is constantly at a risk of political unrest as a result of violence spilling over from the neighboring countries of Libya and Mali, which causes insecurity in the country;
- Transparency International’s Corruption Perceptions Index 2018 negatively ranks Niger as 114th least corrupt country in the world. This clearly demonstrates that corruption is a widespread problem in Niger. This impacts negatively on costs of doing business in Niger as obtaining necessary licenses to do business is costly and time-consuming. Healy Consultants will be happy to help you handle your administrative requirements;
- The official language of Niger is French 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;
- Taxes levied in Niger are quite high with corporate income tax set at a standard rate of 30% on all corporate profits and VAT at the rate of 19%;
- Niger is a landlocked country. This characteristic puts a burden on businesses with respect to i) delayed transportation of goods to and from other countries; ii) restricted export of products manufactured in Niger leading to the country’s isolation from the world markets as well as iii) increased shipping costs. Moreover, it also poses a threat to the security of Niger due to cross-border influx of militant and terrorist groups.
Best uses for a Niger company
- Mineral export company: Since Niger is largely undeveloped and has a small internal market, the largest opportunities are related to the exploitation and export of natural resources. Niger’s largest trading partner is France, to which it exports radioactive material to fuel French nuclear reactors. More conventional fuel sources are present in Niger, with nearly 16% of its 2012 exports being petroleum-based.
- Time to incorporate: Three weeks
- Cost to set up: US$18,950
- Minimum capital: US$2,000
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 30%
- Corporate tax base: Territorial
- Shelf companies: No
- Main company type: SARL
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Useful links for Niger