The Mauritanian industry expanded gradually in 2017 and 2018, accelerated in 2019, shrank in 2020, and then started to expand again in 2021. Economic liberty has been stable over the past five years. Mauritania has had a tiny 0.9-point increase in financial liberty overall during 2017 thanks to higher ratings for administrative efficiency and asset rights. But it still sits in the center of the “Mostly Unfree” nations. Although the economy is in good shape, corporate flexibility has drastically declined.
Overseas firms and corporate people are always invited to make investments in or establish businesses in Mauritania.
If you want to start a firm in the country but are unsure about the local legal framework, don’t worry! This article includes all pertinent details on the corporation formats that Mauritania offers.
Corporate structures
Interested overseas investors should first travel to Mauritania to meet with the administrative agency in control of the concerned field to evaluate their corporate strategy. The advantages of the goods and solutions the Mauritanian economy and citizens will receive can be discussed by the entrepreneurs. Moreover, the kind of corporate structure that would be appropriate for the product and corporate.
The types of business formations are as follows:
- Limited Liability Company
- The Public Limited Company
- The Branch Office
Limited Liability Company
A limited liability company (LLC) is a type of corporate entity that provides pass-through revenue and limited liability coverage. As companies, LLC shareholders are not considered to be part of the LLC’s legal existence. As a result, owners are frequently exempt from liability for the debts and obligations of their companies.
A minimum of 1 director and 1 investor, who may be of any country, must be appointed by the Mauritania limited liability company (LLC, often referred to as SARL regionally). The registration process requires a basic paid-up share capital of US$3,500. Every year, LLCs must provide verified financial accounts and designate a legal auditor.
The Public Limited Company
A PLC is a corporation that has made stock shares available to the general population. Owners of those equities are only partially liable. This means that they are not liable for any corporate losses that surpass the price they invested in the shares.
Nationally, this business structure is known as SA. For registration, this firm needs initial capital of USD 17,000. A minimum of 1 investor and 1 director must be chosen, both of whom may be foreign nationals.
PLC’s records of transactions must be kept in French at its legal location, just like the LLCs. A yearly evaluation must be provided, along with yearly fiscal records. An authorized auditor must also be named by a PLC.
Branch Office
This corporate structure is regarded as a component of the holding enterprise. which is why the original business will decide what this entity’s operational parameters are. The branch office must also have a licensed address and a local representative that has been designated by the firm to accept summons on the enterprise’s account.
You must establish a corporate bank account in Africa to establish a corporation.
The procedure of opening an enterprise
Make sure you adhere to the following procedures to effectively establish a business:
- Submit the required initial capital to the bank;
- Create the company’s formation document;
- File the articles of incorporation;
- Register a company with the Corporate Registrar’s Office;
- Sign up with the tax agency and get a budgetary number;
- Register for National Insurance at Caisse Nationale de Sécurité Sociale.
- Additionally, if you want to start a business in this country, you should get in touch with the Ministry of Labor to request approval
