Guinea is a state in West Africa bordering Guinea-Bissau, Senegal, Mali, Côte d’Ivoire, Liberia, and Sierra Leone. The capital of Guinea is Conakry.
Since Guinea is a former colony of France, French is the official language. The country possesses significant reserves of natural resources, but at the same time remains poorly developed economically.
Volumes of investment applications for registration of a company in Guinea
Company registration in Guinea can be beneficial in the following areas:
- Energy. The Republic of Guinea has enormous potential for hydropower generation in West Africa;
- Agriculture. Guinea is a developing agricultural center in Africa. The registration of an agricultural enterprise in Guinea provides access to 6.2 million hectares of arable land and 300 km of coastline along the Atlantic Ocean;
- Construction (industrial facilities and other real estate);
- Mining. The Republic of Guinea is a country rich in natural resources and minerals, with huge untapped reserves of iron ore. Those wishing to register a mining company in Guinea should be aware that this country is the 5th largest producer of bauxite in the world and No. 1 in Africa, with an estimated production of at least 17 million tonnes per year. To attract foreign direct investment and boost investor confidence, Guinea recently became a member of the Extractive Industries Transparency Initiative (EITI), an organization that seeks to bring transparency to oil, gas, and mining companies in developing countries around the world;
- Information and communication technologies.
Permissible legal forms
The main legal form in which you can open a company in Guinea is SARL. Alternatively, you can also consider an OPF such as SA.
It is possible to establish a limited liability company in Guinea with only one director and one shareholder of any nationality. Business can be either private or corporate. A minimum paid-up capital of $ 14 is also required.
Foreign entrepreneurs have the opportunity to register an LLC in Guinea remotely. The registration of a branch of a foreign company in Guinea is also allowed.
The government has significantly shortened the time it takes to register companies by creating a one-stop shop for company formation in Guinea with the Agency for the Promotion of Private Investment (APIP). It allows non-resident entrepreneurs to register a Guinean company with various government departments, including tax and VAT registration and social security registration in one instance.
Company taxation in Guinea
When planning to establish a Guinean company, carefully read the following information:
- Businesses in this jurisdiction are subject to higher taxes than other neighboring countries in the region. The total tax averages 68% of profits, versus 46% for other sub-Saharan countries;
- Guinean companies are subject to a corporate tax rate of 35%, an income tax of 10%, and a tax on dividends, interest, and royalties of 10%. They also undertake to pay Value Added Tax (VAT) at 18% and Capital Gains Tax at 35%;
- Foreign investors wishing to open branches of companies in Guinea must be prepared to pay higher taxes than other Guinean companies. In particular, this is expressed in the need to pay an additional income tax of 10% after the tax on income earned in Guinea.
How to register a business name
- Register a company name
Before registering your company name, it is necessary to think about the name you want to give your company. The name should not only sound good, but also reflect the type of business, and it should be easy to remember and understand for customers. For example, if your company is a local bakery, the name should reflect that your company is in the bakery industry, such as Ovenfresh Bakery Limited. After you decide on the name, you should register it with the IPA.
- Submit tax identification number in Guinea
Once you receive your IPA certification, you can take it to the Papua New Guinea Tax Commission Customer Service Center at the Tax Office in downtown Port Moresby. There, you must complete an application for a Tax Identification Number and Certificate of Conformity if your company is involved in construction or needs to meet some regulatory standards. All tax information and forms are available at www.irc.gov.pg.
- Open a business account
The last step is where you will now use the company IPA certificate and IRC TIN certificate to open a business account with your local bank. Below are the business banking pages of local banks’ websites. You can also contact your local bank branch and staff will be on hand to assist you with the account opening and other requirements.