Guinea-Bissau is independent in food production, and most of the labor is dedicated to agriculture at the subsistence level; some crops are grown for export. Various small industries and services also generate a portion of the gross national product. Due to a range of destructive factors, including the exploitative legacy of the colonies, war damage, inflation, debt service, corruption, subsidies, poor planning, civil unrest, and mismanagement, the economy fell short of its promises, resulting in a lingering negative trade balance and Guinea-Bissau’s status as one of the poorest countries in the world. To eliminate this deficit, various foreign aid and credit programs have been undertaken.
Guinea-Bissau has recently become a rapidly evolving jurisdiction. Registering a company in Guinea-Bissau is relatively easy and meets European standards. It should be borne in mind that potential shareholders first need to obtain a taxpayer number of the country.
Registration of a corporation in Guinea-Bissau can be with 100% foreign capital. In this case, the founders need to apply in the name of the company, which must be unique if they decide to open a company in Guinea-Bissau. This is necessary to check the uniqueness of the name of the future company. After completing this procedure, shareholders need to open a foreign corporate account, which will be contributed equity capital to start the operation of the firm.
There are no obligations for the minimum authorized capital.
Company registration in Guinea-Bissau takes from 1 week. In order to register a company in Guinea-Bissau, you must provide the following documents:
- identity cards of shareholders and directors;
- a document confirming the contribution of the share capital;
- General meeting minutes allowing incorporation of a company – not applicable to individuals.
Please remark that all foreign reports must be confirmed by the Consulate / Embassy of Guinea-Bissau, which has territorial competence for the successful registration of an enterprise in Guinea-Bissau.
If you have decided to open a company in Guinea-Bissau, it is worth considering that state fees for registering a company do not exceed 500 EUR. To operate in Guinea-Bissau, you must obtain a license. The approximate cost of obtaining a license will range from 400 EUR.
Roughly three-quarters of the workforce is employed in agricultural production. Workers are allowed to join trade unions; of those who are members of the trade union, the vast majority are state or semi-state (state-owned enterprises) workers. Most of the country’s tax revenue comes from taxes levied on international trade transactions, income taxes, and general sales taxes.
Corporate tax is 25%. If a company invests in industries that are important for the country’s development, such as technological development, infrastructure development, agricultural development, environmental protection, and labor resources, then such companies will be exempt from paying 50% of the corporate tax. That is, businessmen have an opportunity to reduce the rate to 12.5%.
Company registration in Guinea-Bissau
To register a company in Guinea-Bissau, you must fulfill the following requirements:
- choose a unique name;
- start a bank account and deposit start-up capital;
- provide the necessary documents.
It is necessary to provide this list of documents:
- personal information of directors and shareholders;
- a document proving the contribution of the authorized capital;
- company incorporation protocols.
All documentation must be translated into the appropriate language and certified by a notary.
Optimal forms of business in Guinea-Bissau for foreigners
The most popular organizational and legal form of registration of a legal entity in Guinea-Bissau is SARL (limited liability company). The main advantages of SARL:
- To register a business, one director and one shareholder of any nationality are enough.
- No visit is required.
- Membership of Guinea-Bissau in OHADA provides access to the markets of the countries – members of the Economic Community of West African Countries.
- The corporate tax is 25%. It is possible to reduce the tax rate to 12, 5% for a period of 6 years, subject to investment in the economy or environmental protection of Guinea-Bissau.
- The country is rich in industrial minerals and metal ores, which is a profitable investment for interested businessmen.