If a person desires to establish a business on the African continent, Togo would be an excellent option. This holds for businesses of all sizes and in the vast majority of industries.
A budget of 1,000 to 1,500 EUR should be considered while forming a corporation in Togo (excluding the company share capital).
Types of company structures
The different company structures available in Togo are explained below
Limited Liability Company (SARL)
The SARL is the legal entity that is utilized to establish small and medium-sized businesses. When forming an LLC, entrepreneurs must identify at least one director and one shareholder, neither of whom must be Togo residents nor of any other nationality. An individual or a corporation can be a registered shareholder. For incorporation in the Republic of Togo, the entity must have a minimum share capital of USD 1,800.
Public Limited Company (SA)
The Togolese SA is a company that assists entrepreneurs in developing larger businesses in Togo. It requires at least three directors and one shareholder, who can be either a person or a corporation, to be registered. A minimum share capital of USD 18,200 is also required to start a business.
The Togolese SA is required by law to hire a notary public and appoint a statutory auditor for the firm.
Branch
The Togolese Business Law permits foreign legal entities intending to do business in Togo to open branch offices. Because a Togo branch office is not regarded as a separate legal entity, the parent firm defines and regulates its operations in Togo. To represent the company in Togo, the branch must appoint at least one director of any nationality. In Togo, this entity is only permitted to exist for a two-year renewable tenure.
Representative office
Foreign corporations may also establish a permanent presence in Togo in the form of a representative office, but they are not permitted to engage in business activities. Representative offices are only allowed to operate in Togo for two-year renewable terms. A Togolese representative office is only permitted to conduct market research and promote the parent company’s operations; it is not permitted to do any other business in Togo.
Business startup tax-free
According to Togo’s tax law, corporations are subject to corporate taxes. You may, however, be eligible for several municipal tax exemptions.
Even if your Togo company does not earn a profit, it must nevertheless file tax returns and prepare a minimum financial statement. You may also be obligated to withhold taxes from your employees’ pay. Even if you are not earning a profit, VAT may apply to your Togo business.
The best way to establish a business in Togo
In Togo, the best way to establish a business is determined by your circumstances. Each business is distinct and distinct in its way. In truth, your business changes every year, and how you grow your business in a new country, such as Togo, will be determined by the goals you establish for yourself in Togo. You may be considering expanding your company and increasing sales. Alternatively, you may intend to relocate your sales activity, even if only on paper, to establish a local reputation for your consumers. You may be looking for local labor or simply want to safeguard your investments. So, while each business is distinct, your requirements are not.
