It is a small nation situated on the west coast of Central Africa. Consisting of a mainland region known as Rio Muni, and five other islands, it has a land area of 28,050 square kilometers and a population count of over a million people residing in the country. The country is a sovereign African state and the second richest in the region thanks to its numerous oil reserves. In 2019, it had a Gross Domestic Product (GDP) valued at 12.432 billion dollars. The taxation system might be friendly to legal persons but the standard corporate tax rate of 35% slightly affects companies’ net income. It is easy to set up a company in this part of Africa. The ease of registering a business here is one reason there are thousands of companies allowed to carry out business activities within certain limitations. Legal persons can choose to start a new company, buy an existing one or sell an owned business. Online markets provide several for-sale businesses. Doing business in this African country is profitable, despite certain hurdles.
This article gives information on selling a company in this country if you own one and are considering selling it.
Selling a company
One of the most effective ways of selling a business is via online market platforms. Sellers can register their businesses and create ads to advertise to potential buyers on the internet. These buyers can then reach out to sellers directly. This is an easy and fast method but not the safest as one might fall into the hands of scammers. To avoid being scammed, the best way is to hire an agent who can handle the process of preparing and ensuring your business is ready for sale. Agents can advertise your business to potential buyers, facilitate the transaction process, and represent you without your presence. One can sell a company from anywhere in the world.
Doing business in Equatorial Guinea
In an actual sense, there is no country where doing business is as easy as baking pie. This little African country offers business owners a good location for commerce, but it comes with hard work. For certain Nationals, a work or business permit is not necessary to carry out business in the country. For others, this is not the case. Some problems faced by businesses on the Island such as communication barriers, limited internet access, delay in the issuance of business/work permits, etc. Regardless, doing business here is cost-effective, manageable, and has potential for improvement.
Forms of legal entities
Running a company in a place requires incorporation. A business owner must first register the business with the authority in charge of companies and other commercial activities. There are several types of entities operating within this territory, usually set up by natural persons or corporate bodies. The forms of structures existing include but are not limited to:
Sole Entrepreneurship
This is a business set up by one legal resident within the country. It is relatively small and does not require a share capital. Sole owners register their businesses but may not pay corporate tax on income earned from their operations.
Partnership
A company formed by two or more individuals contributing funds to make up the share capital. All the partners are liable when debts arise in the business.
Company
There are various examples of companies such as public limited companies, stock companies, private limited companies, etc. Companies are subject to corporate tax on an annual basis. Some companies can sell their shares to the public, while others cannot.
Subsidiary
This is a type of structure that is not a legal entity but a branch office or representative of a parent company. Branches can be set up in different parts of a country while ROs may be established in a foreign country.
