In Niger, establishing a corporation takes about 3 weeks as opposed to 46 days in Sub-Saharan Africa. This article describes the basic practical steps for forming a business as well as the various business structures in Niger.
OHADA
In 1993, 17 countries in West and Central Africa approved the OHADA trade legislation and implementation framework. OHADA stands for Organization for the Harmonization of Corporate Law in Africa, which is the English translation of the French phrase “Organisation pours l’harmonisation en Afrique du droit des affaires”.
Including Niger, the OHADA Treaty currently includes 17 African nations. Any nation can sign the Agreement, regardless of whether they belong to the Organization of the African Union. OHADA was established to promote industrial growth in West and Central Africa by improving the corporate environment and drawing capital to an industry with a million consumers.
The absence of financial progress in sub-Saharan Africa has long baffled and confounded growth analysts. OHADA seeks to find possible approaches. The proposal’s claimed goal is to attract and promote both national and international investment in the participating countries. The OHADA only enacts legislation that pertains to corporate.
The design of the OHADA Agreement led to the acceptance of the Uniform Acts by the participating nations. A variety of corporate legal issues are covered by the Uniform Acts. One of the acts Niger has adopted is the uniform act of a commercial entity.
The following business entities are recognized in Niger by the Commercial Companies Uniform Act:
- Private Limited Company;
- Public Limited Company;
- Sole Partnership
Sole partner Private Limited Company
It is a corporation that can only be founded by one person, and that person’s obligation is only for his contributions and the rights that his shares indicate. Unless specifically stated otherwise by national laws, the minimal quantity is 1,000,000 CFA Francs. It is divided into shares that each have a minimum face value of 5,000 Cfa Francs. One or more corporate bodies designated in the articles of association may be responsible for managing a sole shareholder private limited company.
Sole Holder Public Limited Company
It is a single-shareholder corporation whose obligation is just for the amount of its investment. The registered capital must be at least Cfa Francs 10,000,000, and it is split into shares each with a face value. Shares and other investment tools may be issued by public limited businesses.
There is no requirement that public limited industries with fewer than three shareholders establish a board of directors. A managing director may be given responsibility for the organization’s management and administration.
The company’s governance and strategic management are under the control of the general manager. He is granted the broadest set of rights to carry out his duties, but he must only use them under the company’s objectives.
Sole partnership
One partner may form this kind of business, and his or her liability will be capped at the number of their contributions. Shares are the substitute for his rights.
Both the quantity of capital and the face value of shares are subject to free choice in the articles of association.
Other corporation structures in Niger under the OHADA act
• General partnership
A general partnership is a type of business organization in which two or more people concur to divide all the assets, earnings, and legal obligations of a jointly owned company.
• Limited partnership
The business structure with one ordinary member and one limited member. While the obligations of a limited partner are restricted, those of a general partner is limitless.
• Joint venture
A joint venture is a corporate company or arrangement that two or more people enter into or establish to carry out a certain task or objective while maintaining their identities.
Branch office
A branch is a distinct physical location that is a component of a bigger business. The branch offices in Niger are smaller divisions of several departments inside the foreign corporation, including marketing, finance, and human resources.
