Senegal company registration

DOING BUSINESS IN SENEGAL IN 2020

pay fee by instalmentsbusiness setup without travel

Since 2003, Healy Consultants Group PLC has assisted our Clients with forming companies in Senegal. Our services include i) Senegal business registration ii) government license registration iii) corporate bank account opening services in Senegal and abroad iv) employee recruitment strategies v) visa strategies and vi) Senegal office rental solutions.

Compare different Senegal entitiesTax-resident LLCFast setup solutionsFree zone LLCRepresentative officeBranch office
Also known asSARLFast business solutionsFree trade zonesBureau de représentationSuccursale
Best use of company?All products/ svcsClient to fast close local dealManuf/ export tradingMarketing/ researchSpecific projects
How soon to invoice Clients?4 weeks2 weeks5 weeksCannot4 weeks
How soon can you hire staff?4 weeks2 weeks5 weeks4 weeks4 weeks
How soon can you sign a lease agreement?4 weeks2 weeks5 weeks4 weeks4 weeks
How long to supply corporate bank a/c?4 weeks2 weeks4 weeks4 weeks4 weeks
How long to supply co. reg / tax numbers?4 weeks2 weeks5 weeks4 weeks4 weeks
Corporate tax rate on annual net profits?30%30%0%0%30%
Limited liability entity?YesYesYesNoNo
Govt grants available?YesYesYesNoYes
Govt approval required for foreign owners?NoNoNoNoNo
Res. director/partner/ legal rep. required?NoNoNoYesYes
Minimum paid up share capital?US$50US$50US$1N/AN/A
Recommended paid up share capital?US$1,000US$1,000US$1N/AN/A
Can bid for Government contracts?YesYesYesNoYes
Corporate bank account location?BICISEcobankBank of AfricaUBACitibank
Can secure trade finance?YesYesYesNoYes
VAT payable on sales to local customers?18%18%18%None18%
Average total business set up costs?US$15,300Request a proposal Request a proposal US$17,450US$18,450
Average total engagement period?2 months1 month9 weeks2 months2 months

Senegal company registration summary

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  • Advantages and disadvantages

    Advantages of Senegal company registration

    business registration facts in Senegal

    1. With expert assistance, establishing a company in Senegal can be simple and straightforward because:
      • It is possible to register a limited liability company in Senegal (SARL) with a minimum of one shareholder and one director of any nationality, who do not need to be resident in Senegal;
      • The minimum paid-up capital required for incorporation is only XOF25,000 (US$50). However, we recommend our Clients to allocate a higher capital of US$1,000 to increase the chances of registration approval;
      • Healy Consultants Group PLC can assist out Client to establish the company from A to Z without our Client having to travel to Senegal to complete company formation procedures;
      • Our Clients can sign company incorporation documents overseas. The documents do not need to be attested or legalised at the Senegalese Embassy in the Client’s country of domicile;
      • Clients setting up a branch or subsidiary in the country must translate parent company documents into French. Translations can be done directly in Senegal.
    2. Foreign investors and entrepreneurs find doing business in Senegal competitive because:
      • Business operation costs are low in Senegal. For example i) the average monthly salary in Senegal is US$150 ii) annual office rents are approximately US$8 per square foot and iii) business and trade between Senegal and neighbouring countries is facilitated by good road, rail, sea and air links;
      • Senegal is one of Africa’s most politically and stable democracies. Entrepreneurs find a safe environment in which to set up businesses;
      • Senegal companies qualifying for Free Export Enterprise status and exporting over 80% of their products can benefit from various tax advantages including i) reduced corporate tax rate of 15% ii) tax exemption on registration fees, stamp duty and employee wages tax, and iii) tax exemption on production equipment and raw materials;
      • Companies investing more than XOF100million (approximately US$170,000) in various sectors under The Investment Code benefit from tax incentives including i) exemption from custom duties and ii) VAT suspension for at least three years;
      • Companies established in special economic zones in Senegal also benefit from i) reduced corporate income tax rate of 15% ii) exemption of import and export duties.
    3. Clients looking to set up in Senegal for specific projects not generating income in Senegal can register their project with the Tax Office without setting up a company.

    Disadvantages of Senegal company registration

    1. Clients setting up companies in Senegal face the following challenges:
      • Corporate tax in Senegal is high. Local business are subject to a standard rate of 30%, and 18% VAT. Branches of foreign companies must pay an additional 10% withholding tax on foreign remittances;
      • French is Senegal’s national language. All business documents must be translated into French prior to company incorporation. Non-French speakers can face language barriers when doing business in Senegal;
      • Transport infrastructure in Senegal and the region can be a barrier to trade. It is relatively expensive for companies to carry out intra-ECOWAS trade, as well as to trade within and outside Senegal;
      • Bureaucracy, lack of transparency and corruption in obtaining necessary licenses in certain lucrative businesses sectors such as oil and gas can be costly and time consuming. Healy Consultants Group will be happy to help you handle your administrative requirements;
      • Routine power outages can mean sales losses for investors. Entrepreneurs doing business in Senegal must consider investing in generators, which adds operational costs.
    2. Before approving Senegal company setup, the government requires all foreign directors to supply an extract of a police clearance report.
    3. US$ bank accounts are not an option for companies registered in Senegal, except for diplomatic missions and larger organisations with an HQ agreement with the Senegalese government.
  • Best uses for a Senegal company

    1. As a West African distribution hub. While regional transport infrastructure is inefficient, Senegal has some of the best harbour facilities in West Africa. For example, the port of Dakar is used by landlocked West African countries to receive shipments;
    2. As a Francophone Africa headquarters: As one of the more stable and investment-friendly French-speaking countries in Africa, Senegal is a great choice of domicile for a business serving Africa’s former French and Belgian colonies.

Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: US$15,300
  • Minimum capital: US$2,000
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 30%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: SARL

Healy Consultants’ video on Senegal business setup
Contact the presenter: Seth Ochieng, Director of Client Engagements, Healy Consultants Group PLC

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Contact us

For additional information on our company registration services in Senegal, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
apix, investment promotion and major projects in Senegal senegal chamber of commerce industry and agriculture senegal ministry of economics and finances IPRES - institution Provident Retreat Senegal social security fund of Senegal senegal-bank