Opening a company in Senegal will be an excellent opportunity to gain access to the West African markets and create a promising medium or large business.
The Republic of Senegal is a sovereign state located in the western part of the African continent, south of the river of the same name and washed by the Atlantic Ocean.
The closest neighboring countries are Mali, Guinea, Mauritania, and Guinea-Bissau.
Key sectors of the state economy: extraction of natural resources (oil, copper, gold, zirconium, phosphorites), agriculture (sorghum, millet, corn), livestock and fishing, industry (processing of agricultural products and fish, cotton, pharmaceutical production), food industry (flour, sugar, beer), automotive industry.
The capital of the state is Dakar. Largest cities: Kaolak, Ziguinchor, and others.
State languages: Arabic and French. The population of the country is over 17 million people. The state currency is the West African franc or CFA franc (XOF).
The climate of the jurisdiction is subequatorial.
Participation in international organizations: African Union, OIC, ECOWAS, Non-Aligned Movement, ICRC, IBRD, Group 15, Group 77, Franca Zone, ECOCAS, and others.
Features of the business climate
If you are considering such an option as registering a company in Senegal remotely, then we suggest that you carefully read these business advantages of an African country:
- Smooth but stable economic growth;
- Favorable geographical location;
- Established trade relations with France, Italy, India, Belgium, Great Britain, the Netherlands, China, Thailand, and Mali;
- One of the most dynamically developing states in Tropical Africa;
- Developed banking system;
- Duty-free trade with the USA;
- Labor force available;
- Flexible taxation system;
- Absence in the “black lists” of the OECD and the European Union;
- More than 5 DTA agreements with European and African countries.
If you intend to register a company in Senegal in 2021, then we advise you to choose one of these business areas that are popular in this jurisdiction: food industry, tourism, fuel industry, electronics, trade, medicine, IT technologies, and mobile communications, transport.
Key OPF
If you are going to open a company in Senegal remotely, then the first thing you need to do is choose the optimal form of business activity. In the Republic of Senegal, you will have the opportunity to register the following types of business:
- Local limited liability company (LLC / SARL);
- Joint Stock Limited Liability Company (PLC / SA);
- Branch (B);
- Representative Office (RO).
A relatively simple registration scheme that does not require much time, comfortable business management conditions, and loyal taxation – all this can be said with confidence about
This OPF is the most popular among foreign entrepreneurs, so if you want to register a company in Senegal, we recommend that you opt for it.
Business registration conditions
If you are planning to open a company in Senegal remotely, then you will need to fulfill the following conditions without fail:
- The unique name of the company, at the end of which the selected OPF is indicated (full form or abbreviation);
- The required number of directors is at least 1;
- The required number of shareholders is at least 1;
- Enterprise management: carried out by individuals and legal entities;
- The presence of a company secretary is not required;
- The minimum authorized capital is 2,000 USD;
- Local registered office and address: not required;
- Bookkeeping, annual filing of financial statements: yes.
Tax system
If you are interested in registering a company in Senegal in 2021, we recommend that you study in detail the list of current requirements regarding the tax regime of the state:
- The standard corporate tax rate is 30%. There is a reduced rate of 15% for Free Export Companies;
- The minimum income tax is 0.5% of the annual turnover if the company’s income is at least 50 thousand XOF and not more than 5 million XOF;
- VAT – 18%;
- Dividend tax – from 5 to 20%;
- Interest tax – from 8 to 16%;
- Royalty tax – 10-20%.
