The African republic is probably the best place in Central Africa to do business. Due to many investment opportunities such as the availability of raw materials, cheap labor, low cost of production, link to the African market et cetera, it’s no surprise that investors tend to buy offshore companies here. Located in the center of Africa, it is the best strategic hub for business activities. There are five basic types of business entities established by business owners looking to do business or purchase an existing company on its shores.
If you are interested in buying a company, there are online marketplaces where you can easily see information on the companies up for sale. However, you may choose to do it physically. This guide provides information on how to buy a company here, as well as the types of companies to look out for.
Buying a Company
If you want to buy an offshore company without having to travel down here, you can hire the services of a business support provider. The agents will represent you during the process and all you have to do is pay the funds. However, this can be a bit risky as business identity thieves are quite rampant these days. Therefore, caution should be exercised when thinking of buying a business. Depending on the reason for buying, the company may be merged after purchase or left to run independently.
There are two steps to buying a business. Step one involves finding a choice of company up for sale and carrying out research to ensure it is legit. On a website like SMERGERS, you can find a list of active and verified businesses for sale and investment opportunities.
Step two has to do with hiring a service provider to represent you during the process of the purchase. One can choose to do this oneself if one resides within the territory, but for those abroad, it is advisable to hire one. Service providers take charge of the process from the early steps of over-the-table discussion to serious stuff like the signing of documents.
Doing Business in the Central African Republic
The Chamber of Commerce along with the commercial Act is responsible for the establishment of companies that wish to operate in the republic. All companies have to be registered with the Trade Office and must comply with all the regulations of the state. Doing business here is lucrative, but it comes with a few challenges.
Types of Companies
The Chamber of Commerce regulates business structures and commercial activities here. Four types of entities are recognized namely limited liability companies, public limited companies, Branch offices, and Representative offices. Limited Liability Company is commonly established by small business owners, while foreign corporations who want to expand within the territory can set up either a branch or representative office.
Limited Liability Company (Société À Responsabilité Limitée – SARL) (Ltd)
Easily set up by small-sized business owners with little investments.
Public Limited Company (Société Anonyme) (SA)
A large-scale business with large investments and shareholders.
Branch Office (Succursale)
The branch office of a foreign parent company is owned by foreigners.
Representative office (Bureau de representation)
Regulated by the Chamber of Commerce, foreign companies set up a representative office to only promote their products here.
Features of a Company
To buy any entity, certain requirements have to be met by the investors. Every company has its features and requirement. By knowing the features of each and how they apply to the business, one can make a good choice. The following are some of the features of a company.
- Shareholders’ liabilities
- Registered business address
- Minimum Share capital
- Number of shareholders, etc.