One of the countries in Central Africa, it offers foreign investors resources that grow business with ease such as cheap labor, abundant manpower, low cost of production, etc. doing business here cost little with high productivity and profit maximization. The Commercial Companies Uniform Act backs the legal regulation of business structures and other commerce-related activities. A limited Liability Company is the commonest type of entity established by business owners within the nation. For large investments, the public limited company is recommended. Foreigners who are interested in setting up permanent establishments can opt for a branch office or representative office.
Types of Business Structures
All companies doing business in the country has to register with the Trade office and comply with the rules and regulation of the board. There are four types of structures recognized by the Act namely limited liability company, public limited company, Branch office, and Representative office.
Limited-Liability Company (SARL) (Ltd)
This corporation has to be set up by a citizen, a legal ex-pat, or a corporate body. The rights of all partners are always represented by the shares they hold. It has a minimum share capital of $1,100 and must be managed by a director who is a resident in the state for at least 2 years. At least one of the shareholders must be a national from any country, but not necessarily a resident. It is an excellent choice for persons with small investments.
Requirement
- Has to appoint an auditor if it has a share capital above $111,000
- An annual turnover exceeding $275,000
- Hires above 50 permanent employees
Public Limited Company (Société Anonyme) (SA)
An SA is the best business entity recommended for investors who are interested in establishing businesses here and financing such investments by issuing equity such as allowing the public to buy company shares (limited). The shares’ nominal value has to be in the articles of association. The minimum share capital is $11,000 for incorporation. It has to be managed by a minimum of one director who must have resided there for more than 2 years. Shareholders can be from any nationality and do not necessarily have to live within the territory. It takes a total of 17 weeks to incorporate this entity.
Requirement
- Has to hire the services of a public notary
- Appoint a statutory auditor
Branch Office (Succursale)
Recommended for foreign companies looking to invest and do business here by establishing a permanent entity. It is not seen as a separate entity as in other countries, therefore, all its operations and business-related activities within the nation have to be defined and managed by the parent company abroad. It requires at least one director from any country in the world. The national laws of the state still apply to it, which is why it must be registered, obtain a permit to do business, acquire a tax registration certificate, file annual tax returns, etc. From the start-up to the opening of a corporate bank account, the process of its incorporation is a maximum of 19 weeks, unless certain documents fail to satisfy the statutory requirements.
Representative office (Bureau de representation)
Foreign investors are advised to set up this entity if they have companies in their country of residence. This entity makes doing business here a lot easy as it does not have many requirements like the others. Although it is a permanent establishment, it may not engage in any form of business activity. It is only allowed to promote the activities of the parent company and conduct market research alone. It takes roughly 18 weeks to incorporate and needs no filing of an annual tax return.
