DOING BUSINESS IN TOGO IN 2023
Since 2003, Healy Consultants Group has assisted our Clients with Togo business registration. Our services include i) Togo company formation services ii) government license registration iii) corporate bank account opening services in Togo and/or abroad iv) employee recruitment v) visa strategies and vi) office rental solutions in Togo.
| Compare different Togo entities | LLC | PLC | Branch office | Rep office |
|---|---|---|---|---|
| Also known as | Succursale | SA | Succursale | bureau de representation |
| Best use of company? | All products and services | To secure public funding | Short-term projects | Marketing and research |
| How soon can you invoice Clients/sign sales contracts? | 4 weeks | 5 weeks | 5 weeks | No |
| How soon can you hire staff? | 4 weeks | 5 weeks | 5 weeks | 5 weeks |
| How soon can you sign a lease agreement? | 2 weeks | 2 months | 1 month | 1 month |
| How long to supply corporate bank account numbers? | 4 weeks | 5 weeks | 5 weeks | 5 weeks |
| How long to supply corporate bank account numbers? | 4 weeks | 5 weeks | 5 weeks | 5 weeks |
| Corporate tax rate on annual net profits? | 27% | 27% | 27% | 0% |
| Limited liability entity? | Yes | Yes | No | No |
| Does our Client need to travel? | No | No | No | No |
| Minimum directors required? | 1 | 3 | 1 | 1 |
| Minimum shareholders required? | 1 | 1 | Parent company | Parent company |
| Company secretary/Resident legal representative required? | No | No | No | No |
| Sponsorship by a local citizen required? | No | No | No | No |
| Regulated by which Government body? | Chamber of Commerce and Industry | Chamber of Commerce and Industry | Chamber of Commerce and Industry | Chamber of Commerce and Industry |
| Government grants available? | Yes | Yes | Yes | No |
| Minimum paid up share capital? | US$100 | US$4,200 | None | None |
| Can bid for for Government contracts? | Yes | Yes | Yes | No |
| Corporate bank account location? | EcoBank | Atlantic Bank | Togolese Union Bank | SIAB Bank |
| Can secure trade finance? | Yes | Yes | Yes | No |
| VAT payable on sales to local customers? | 18% | 18% | 18% | None |
| Average total engagement costs? | US$15,350 | US$17,280 | US$17,100 | US$16,100 |
| Average total engagement period? | 8 weeks | 10 weeks | 10 weeks | 9 weeks |
Togo company registration summary
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Advantages and disadvantages
Advantages of Togo company registration
- Our international Clients will find establishing a company in Togo simple because:
- A Togolese limited liability company (SARL) requires only one director and one shareholder, who can be any nationality and can be individuals or corporate bodies;
- The minimum paid-up capital required for an LLC is only US$200 (CFA100,000);
- A Togolese public limited company (SA) can be incorporated by a single shareholder, and requires a minimum paid-up share capital of only US$1,800 (CFA1 million);
- The whole company setup process is handled at a One-Stop-Shop, significantly reducing the procedures and time required to form a company in Togo. Our Client does not need to travel to Togo to complete the engagement;
- Togo is ranked by the World Bank as a challenging place to do business;
- Togo is a land of opportunity for foreign investors and entrepreneurs:
- Because of underdevelopment, there is great upside potential in rail, port, air and road infrastructure development;
- Although largely dependent on agriculture (which currently employs more than two thirds of the population), about one third of Togo’s arable land remain unused;
- Togo has large deposits of iron, chromite, manganese, bauxite, phosphates, limestone, marble, garnet, nickel and other minerals that largely remain untapped;
- As a member of OHADA, Togo allows foreign entrepreneurs to benefit from simplified business laws and foreign investment processes.
Disadvantages of Togo company registration
- Among the challenges of doing business in Togo are:
- A Togolese company (SARL) is subject to i) 29% corporate tax ii) 20% withholding tax on dividends and interests remitted abroad and iii) 18% VAT on the sale of goods and services;
- Togo has a limited domestic consumer market. About 60% of its 7.8 million residents live in rural areas, many depending on subsistence farming;
- Togo’s official and business language is French. Non-French speaking entrepreneurs looking to establish a business in Togo will face language barriers and possible additional costs for translation of business documents;
- The country is ranked 126th out of 180 economies in the Corruption Perceptions Index 2019;
- Foreign entrepreneurs are required to invest substantially on on-the-job training for Togolese employees, given the lack of qualified talent in sectors like engineering.
- Our international Clients will find establishing a company in Togo simple because:
Best uses for a Togolese company
- French-speaking investment and development: French is the most widely spoken language in Togo, making it more accessible for Francophone investors;
- Investments in Togo should focus on growing and developing the national economy and skills base.
