Situated in the eastern parts of Africa, the republic is one of the best business centers for foreign investors in the whole continent. It provides lots of business opportunities and business incentives like friendly taxes, cheap labor, raw materials, low cost of production and distribution, accessible network into the African market, etc. The Burundi investment promotion agency regulates the kinds of business entities allowed in the country and other business-related activities. While the Limited Liability Company is popular amongst small business owners, persons and or corporate bodies with large investments usually establish public limited companies. Foreigners can choose to set up a free zone company provided they meet all requirements needed.
For an ex-pat or a Burundi national thinking of starting a business legally, this article contains useful information on the forms of corporations permitted to operate here and some features specific to each of them.
Types of Business Structures
According to the Burundi Investment Promotion Agency, all companies that wish to conduct business legally within the territory without restrictions must be duly registered with the office and ensures they obey all regulations of business. There are only three forms of business entities recognized by the Agency, all of which carry out business activities. They are Société À Responsabilité Limitée (SARL/SURL) known as Limited Liability Company, Société Anonyme (SA) (Public Limited Company), and Free Zone Company.
Limited Liability Company (Société À Responsabilité Limitée – SARL/SURL) (Ltd)
As it is highly recommended to individuals with little investments looking to set up small-sized businesses, it is a very common type of entity here. Requires a minimum share capital of $1, all activities are overseen by at least one director who can be from anywhere in the world and has one shareholder, or two if the business is jointly owned by a corporate body.
Requirement
- Has to hire a statutory auditor
- Submit annual audited financial statements
Public Limited Company (Société Anonyme) (SA)
This form of company is best suited for individuals with large investments, especially foreign investors interested in doing business in East Africa. It offers unlimited liability and permits the purchase of company shares by the public. Requires a minimum share capital of $1 at incorporation, at least three shareholders, and two directors who can be residents or citizens of any country. Upon registration of this form, a corporate bank account must be opened, the business name has to be registered, the company has to register for the tax to obtain a certificate, apply for a business permit or license, etc. Incorporation takes at least 6 weeks to complete. It is allowed to hold equities in other domestic companies and rent an office building.
Requirement
- Present annual statements every year
- Hire an Auditor
- Open company account
- File annual tax
Free Zone Company
A special type of entity opened to foreign investors from any country in the world. To be eligible to conduct business in the special investment zones, a company is required to meet criteria such as exporting all of its goods and providing services outside the territory only, having a minimum share capital of $1, and adding substantial worth to the economy like hiring a majority of its citizens as workers. This company can be fully owned by foreigners or foreign corporate bodies. One feature that makes it special is that it is exempted from paying import and export taxes. It takes at least 6 weeks to incorporate this entity while opening a corporate bank account takes another 6 weeks. There is no need to file annual tax returns, obtain a tax registration certificate or pay taxes. Setting up requires a resident director or representative as stated by BIPA.
