Business entities in Sudan
Healy Consultants will assist our Clients with incorporating the optimal corporate structure in Sudan. There are several ways of doing business in Sudan, the preferred structure for most entrepreneurs is the limited liability company (LLC). Alternatively, our Clients can choose a public limited company (PLC) or a branch office or a representative office.
Limited Liability Company (LLC)
- This Sudan business setup is commonly used by entrepreneurs looking to establish long term projects in the country. This entity must have at least 2 shareholders, who may not be Sudanese nationals or residents. However, it is mandatory for company to appoint at least 1 resident director;
- A Sudan LLC must also deposit a minimum share capital of US$25,000. However, there are no audit requirements or company secretary requirements for this entity.
Public Limited Company (PLC)
- The minimum share capital requirement for a PLC is US$25,000, however this figure may vary depending on the investor’s intended business in Sudan. At least 7 shareholders and 2 directors must be appointed. While, the shareholders may not be Sudanese residents or nationals, at least one director must be resident in the country;
- The Sudan Companies Law requires a PLC to appoint an auditor for statutory audit purposes. A company secretary must also be appointed when incorporating this entity. This business entity can apply to be publicly listed in the Khartoum Stock Exchange market, however complex listing requirements dissuade foreign entrepreneurs to consider this option.
Branch Office
- This Sudan business setup is recommended for entrepreneurs looking to engage in short term projects in the country. This entity is an extension of the parent company and is therefore, not considered as a separate legal entity. Consequently, the parent company is legally liable for all actions against the branch office;
- The scope of operations for this entity will also be defined by the parent company. To form this entity, it is mandatory to appoint at least 1 resident manager and deposit capital of at least US$50,000.
Representative Office
- Like a branch office, this entity is also considered an extension of the parent company. A representative office must refrain from engaging in any income generating activity. It may only engage in i) market research and ii) promoting the business of the parent company;
- It is mandatory to appoint a resident individual to represent the entity is Sudan. This individual will receive all summons and other declarations issued to the entity in Sudan.
Table of comparison between Sudan business entities
| LLC | PLC | Branch | Rep office | |
|---|---|---|---|---|
| How long to set the company up? | 8 weeks | 8 weeks | 6 weeks | 6 weeks |
| How long to open company bank account? | 5 weeks | 5 weeks | 5 weeks | 5 weeks |
| Legal liability? | Limited | Limited | Unlimited | Unlimited |
| Wholly foreign owned? | Yes | Yes | Yes | Yes |
| Minimum paid - up share capital? | US$25,000 | US$25,000 | US$50,000 | US$0 |
| File annual tax return? | Yes | Yes | Yes | No |
| Tax registration certificate required? | Yes | Yes | Yes | Yes |
| Recommended corporate bank account? | Blue Nile Mashreq Bank | Bank of Khartoum | National Bank of Abu Dhabi | National Bank of Sudan |
| Does our Client need to travel? | No | No | No | No |
| Resident director required? | Yes | Yes | Yes | No |
| Sudan shareholder required? | No | No | No | No |
| Minimum directors allowed? | 1 | 2 | 1 | 1 |
| Minimum shareholders? | 2 | 7 | 1 | 1 |
| Tax identification code needed? | Yes | Yes | Yes | Yes |
| Sudan resident company secretary required? | No | Yes | No | No |
| Corporate shareholders allowed? | Yes | Yes | Yes | Yes |
| Corporate director(s) allowed? | Yes | Yes | Yes | No |
| Sudan corporate tax rate? | 15% | 15% | 15% | 0% |
| Annual financial statements required? | Yes | Yes | Yes | No |
| Statutory audit required? | Yes | Yes | No | No |
| Regulated by? | The Zakat Chamber | The Zakat Chamber | The Zakat Chamber | The Zakat Chamber |
| Allowed to issue sales invoices? | Yes | Yes | Yes | No |
| Allowed to sign contracts? | Yes | Yes | Yes | No |
| Allowed to import and export goods? | Yes | Yes | Yes | No |
| Can rent an office space in Sudan? | Yes | Yes | Yes | Yes |
| Can buy Sudan property? | Yes | Yes | Yes | No |
| Can own equity in other Sudan companies? | Yes | Yes | Yes | No |
| Total Sudan Business setup costs in Yr. 1? | US$17,700 | US$19,700 | US$18,700 | US$18,150 |
| Subsequent Annual costs (incl. accounting and tax fee)? | US$7,300 | US$9,300 | US$8,300 | US$6,000 |
| Sample engagement invoice? | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF |
