Mali’s long-term financial prospects are positive amidst the destabilizing impacts of its coups d’état in 2012 and 2020 and recurring terrorist risks. This is because of the country’s abundant natural assets, power possibilities, and elevated agricultural possibilities. Mali is open for trade and encourages foreign businessmen to set up industry there even though the country still confronts many political, security, and development issues.
OHADA Treaty
The OHADA Treaty, also known as the Treaty on the Harmonization of Commercial Law in Africa, was ratified by 16 African nations in 1993. The OHADA Treaty’s objective is to provide constitutional and administrative protection to commercial development in the participating states to increase shareholder trust and promote trade among the member nations. Mali is among the nations that have ratified the OHADA Treaty as of right now.
The OHADA Treaty’s structure resulted in the adoption of laws known as the Uniform Acts by member countries. The Uniform Acts cover a range of commercial law concerns. A commercial company’s uniform act is one of the uniform acts that Mali has enacted.
Commercial entities
The Commercial Companies Uniform Act recognizes the following commercial entities:
- Non-registered company;
- public limited company (société Anonyme);
- limited liability company (société à responsabilité limitée);
- And the simplified joint-stock company (société par actions simplifiée).
Non-registered company
Following Article 114 of the Amended Commercial Organizations Unification Act, members may decide not to incorporate an industry. The unregistered business lacks a lawful identity and is exempt from RCCM certification. Such an unregistered corporation is subject to the provisions of Articles 854 of the Modified Commercial Organizations Uniform Act relevant to partnerships, including the infinite liability of the shareholders.
Public limited company
The shareholders of a public limited company are responsible for the firm’s liabilities to the amount of their participation, and the stocks serve as a representation of the investors’ rights. The basic share capital of 10 million CFA Francs is required (approximately 15,249 Euros). In the memorandum of incorporation, the actual price of the shares is freely established.
The stakes in a public limited establishment may not reflect the members’ contributions, in contrast to other corporate models. Depending primarily on the stockholders, the public limited corporation is either administered by a corporate manager or by a management board.
Limited liability company
In a limited liability firm, each partner is responsible for the liabilities of the business only to the degree of their participation. The amount of units a partner owns in SARL is a representation of their rights inside the firm. One the more natural or corporate persons may form a limited liability enterprise.
The SARL’s minimum capital requirement is one million CFA Francs (1,524.90 Euros). Every unit is equally valued at a minimum of 5,000 CFA Francs (7,62 Euros).
One or more natural people designated in the statutes of the organization or a later deed of the corporation are in charge of managing the business. Smaller enterprises would benefit more from the SARL.
Joint-stock company
Compared to a public limited business, the SAS allows investors and executives a great deal more flexibility. With the SAS, the OHADA region now has a business model that is better suited for investment activities than those found in other nations with comparable growing economies.
There is no basic share capital required for registering a SAS, and investors can be both natural and legal entities. Its governing structure is adaptable and may be customized to the requirements of the shareholders.
Such adaptability will make it possible to set up management structures that are tailored to the various investor profiles.
Branch
A branch is a business, manufacturing, or service location that is a part of an organization or person but has some degree of managerial autonomy. A business or a natural person may open a branch.
A branch does not have an independent legal identity from the business or the founder. It is governed by the participating state’s national legislation. But it needs to be listed on the Trade Register
