Agriculture generates over half of Burundi’s economic output. The main subsistence crops are cassava and sweet potatoes, while the principal cash crops are coffee, tea, and cotton, with hide and skin providing a valuable source of revenue. Burundi’s tax system is simple, with personal income tax rates ranging from 0% to 30%, corporation tax at 30%, and VAT at 18%.
The Investment Agency (l’Agence de Promotion des Investissements, API) is in charge of registering businesses in Burundi’s commercial register. The business register is managed by the commercial court (Tribunal de Commerce). Full legal name, representatives, directors, and proprietors, current status (active/inactive), kind of business, full address, and extra data are all included in the register.
Business types in Burundi
The search in the registry is not free. Within 7-14 days of submitting your request, you will receive search results. Sole Owner Company (SU), Partnership with Limited Liability (SPRL), Limited Company (SA), and Limited Liability Cooperative (LLC) are the four types of corporations that can be registered in Burundi (Cooperative). The following are the specific requirements for each business type:
Sole Owner (SU)
- The sole shareholder of the company must be physically present.
- two passport-size photos.
- An ID or passport for a foreigner.
- The cost is 40,000 BIF.
- Complete forms.
Partnership with limited liability (SPRL) and limited company (SA)
A partnership with limited liability must have at least two shareholders, whereas a limited company must have at least three. Photographs are not necessary for any situation, and the procedures are identical.
- The physical presence of all shareholders or a proxy as their representative.
- ID copies or passports foreigners
- When using a proxy, a certified true copy of the original ID/passport is required, as well as a notarized proxy.
- The cost is 40,000 BIF.
- Complete forms.
Cooperative with Limited Liability
- The presence of the Board of Directors Chairperson.
- An ID or passport for a foreigner.
- Notarized minutes naming the chairperson, as well as a list of cooperative members.
Creating a business in Burundi
To start a business in Burundi, you must meet the following requirements: Any nationality (at least two people) can be a director and shareholder. If you wish to start a business in Burundi, you must submit paperwork with notarized translations into French. A short article describing the registered company must be published in a local business newspaper. The following are the steps of forming a business:
- Submit all documents to API, the one-stop shop, and acquire a registration certificate and a tax ID number. The Agence des Promotions des Investissements (API) requires the following documents to be submitted:
- Application for the formation of a new business (includes the name of the company, type of company, address, initial capital, number of partners and their names, and contribution of each partner).
- Statutes governing corporations.
- Application for registration with the Tribunal de Commerce’s Greffe.
- Registration with the OBR to acquire the NIF application form.
- All partners’ photos.
- All partners’ identities are duplicated.
- The applicant must first deposit all of these documents at the API before paying the BIF 40,000 registration cost. The tax authority (Office Burundais des Recettes) will subsequently provide the applicant with a certificate of incorporation and a fiscal identity number (NIF). In addition, at the one-stop-shop, the applicant can now complete the company’s registration with the National Institute for Social Security. An LLC that engages in normal business activity costs BIF 40,000.
- At the Commercial Bank cashier, pay the registration fees. The registration fees for all new firms must be paid at the Commercial Bank cashier.
- Make a seal for your business. Although the use of a corporate seal is not required by law, it is common practice. To issue a loan contract, certain banks would require the company seal. A seal takes around two days to create and costs BIF 20,000.
