Senegal company registration

DOING BUSINESS IN SENEGAL IN 2019

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.

Summary table of Senegal company registration

SummaryTax-resident LLCFast business setup solutionFree zone LLCRepresentative officeBranch office
Also known asSARLFast business solutionsFree trade zonesBureau de représentationSuccursale
Best use of company?All products and servicesClose a customer deal immediatelyManufacturing and export tradingMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?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 account numbers?4 weeks2 weeks4 weeks4 weeks4 weeks
How long to supply company registration/tax numbers?4 weeks2 weeks5 weeks4 weeks4 weeks
Corporate tax rate on annual net profits?30%30%0%0%30%
Limited liability entity?YesYesYesNoNo
Government grants available?YesYesYesNoYes
Government approval required for foreign owners?NoNoNoNoNo
Resident director/partner/manager/legal representative required?NoNoNoYesYes
Minimum paid up share capital?US$50US$50US$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 engagement costs?US$19,600Request a proposal Request a proposal US$21,650US$20,950
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. It is possible to register a limited liability company in Senegal (SARL) with a minimum of one shareholder and 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 Senegal for the company formation procedures;
    2. Business operation costs are low in Senegal because i) the average monthly salary of the staff in Senegal is US$190 according to the World Bank ii) office space annual rent is approximately US$8 per square foot and iii) business between Senegal and neighboring countries is easily facilitated by road, rail, sea and air;
    3. Senegal is one of the most politically and stable democracies in Africa providing entrepreneurs a safe business environment in which to setup businesses;
    4. Our Clients registering a Senegal company exporting over 80% of its products abroad can benefit from the Free Export Enterprise status granting them tax advantages including i) reduced corporate tax rate of 15% ii) tax exemption on employees’ wages, registration fees and stamp duty and iii) tax exemption on production equipment and raw materials;
    5. Senegal is an excellent location for agriculture, fishing and aquaculture businesses. This is majorly due to the presence of i) a dynamic export-oriented horticultural and aqua cultural sector and ii) an extensive coastline of 700 km on Atlantic Ocean and 1700km along Senegal River;
    6. Moreover, all the businesses in this sector are entitled to numerous tax benefits including complete exemptions from paying of i) customs duties; ii) VAT for 3 years and iii) free export of goods & services to and from Senegal.

    Disadvantages of Senegal company registration

    1. Corporate tax in Senegal is high and local business are subject to a standard rate of 30%. Branches of foreign companies have to pay an additional 10% withholding tax on remittances;
    2. French is the national language of Senegal therefore all business documents must be translated into French prior to incorporation of a company. For our non-French speaking Clients, language can also be a barrier when doing business in Senegal;
    3. Our Clients will suffer from red tape when running their business and dealing with government officials. Senegal is indeed one of the most challenging business environments in the world and is negatively ranked 161st out of 189 economies by the World Bank ease of doing business survey 2015;
    4. Bureaucracy, lack of transparency and corruption make company incorporation in Senegal burdensome and costly. Obtaining necessary licenses to do business is time-consuming. Healy Consultants will be happy to help you handle your administrative requirements;
    5. Routine power outages culminate into major sales losses for investors. Therefore entrepreneurs who would like to do business in Senegal must consider investing in generators and this has cost implications on the business;
    6. There is a significant hindrance in getting regional access within and outside of Senegal due to the huge infrastructural gap in the country. As a result, it is relatively expensive for companies to carry out the intra-ECOWAS trade as well as to trade goods within and outside the country.
  • Best uses for a Senegal company

    1. West African distribution hub: Senegal is an ideal location to setup a headquarters for business in Africa as the country i) is connected by an extensive road network, the Trans-African Highway and ii) benefits from the best harbor infrastructures in West Africa.
      The port of Dakar is indeed used by all businesses based in West Africa’s landlocked countries receiving their shipments. Our Clients will find this particularly advantageous for movement of goods within Africa as well as to and from Europe, which will boost their sales abroad.
    2. Headquarters for Francophone African business: 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$14,800
  • 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

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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 trade, informal sector, consumer affairs, promotion of local products and SMEs senegal ministry of economics and finances IPRES - institution Provident Retreat Senegal social security fund of Senegal senegal-bank