Burkina Faso

Company Formation in Burkina Faso

Burkina Faso is a good destination to set-up your company to cater to the fast growing African market with a large population. YourGlobalPro can assist in Burkina Faso for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

Burkina Faso is a landlocked country located in West Africa, sharing border with six countries: Mali to the north; Niger to the east; Benin to the southeast; Togo and Ghana to the south; and Ivory Coast to the southwest. It owes its former name of Upper Volta to three rivers crossing it namely the Mouhoun, Nakambé and Nazinon. And it has a primarily tropical climate with two very distinct seasons – rainy season and Dry Season. The below content will explain you in detail about the requirements for the company formation in Burkina Faso, know more about the process of trademark registration in Burkina Faso and understand the Burkina Faso Legal and Compliance requirements.

Burkina Faso

Doing Business Introduction

The Country is considered as one of the safest investment destination in the world. It is the fourth-largest gold producer in Africa, after South Africa, Mali and Ghana. As per Doing business report of The World Bank –Burkina Faso ranks 146 for 2017 survey.

YourGlobalPro professionals can assist its client with any type of company formation in Burkina Faso, trademark registration in Burkina Faso and other recurring services for your business in Burkina Faso.

Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Burkina Faso are as mentioned below:

·       Limited Liability Company (Socié t é à Responsabilit é Limitée – SARL)

·       Public limited company (Société anonyme – SA)

·       Branch (Succursale)

Time Frame for Incorporation of Company in Burkina Faso varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for the process of Company formation in Burkina Faso to be completed is 13-18 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Burkina Faso:

·       Stable democracy and political system

·       Streamline procedures, and reduce time and costs

·       Tax and customs exemptions as well as exemptions and from value added tax (VAT) on operational equipment

·       Additional incentives for investments in the areas of agriculture, silviculture, animal breeding, and fish farming

·       Right to Fixed property, forest and industrial rights; concessions; administrative authorizations; access to permits; and participation in state contracts

·       one-stop shops for company registration

·       A company can register its business in 13 days with three procedures

·       Foreign investors receive the same treatment and timetable as local investors in the bidding process

·       Equality in the bidding process, and transparency of procedures

Tax Registration and Filing

All the companies operating in Burkina Faso are subject to tax on earnings in Burkina Faso and worldwide income.

Corporate Income Tax Rate 27.5%
Branch Profits Tax Rate 50%
Capital Gains Tax - Treated as part of ordinary business income. - Gains from real estate are taxed separately at 10%
Branch Remittance Tax 150%
Withholding Tax Dividends - 5%
Interest - 6%
Royalties - 20%
Management and Technical Fees - 3/20%
Tax Year 1 Jan to 31 Dec

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Burkina Faso has double taxation treaties with France, Tunisia and WAEMU (member countries are Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo).

Trademark registration

For trademark registration in Burkina Faso, an application needs to be made to the Ministry of Commerce, Bureau of Intellectual Property of Burkina Faso. It takes approximately 15-18 months’ timeframe to complete the process of trademark registration in Burkina Faso. The Trademark Registration in Burkina Faso is valid 20 years from the date of filing trademark and is renewable for similar period by paying the renewal fee by the expiration date for an unlimited number of times.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Burkina Faso for your business. For assistance or advice in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Burkina Faso:

·       Business founders must deposit their startup capital at a bank.

·       Proper minutes books and records for the Company must be maintained

·       The Companies must have Registered Office.

·       Proper book of accounting records needs to be maintained

·       The constitutional changes in the company must be informed to the registration Authority.

Accounting Services

In Burkina Faso, non-exempt companies and public companies should comply with IFRS and company law schedules and other laws relating to accounts while Exempt private company will comply with generally accepted accounting principles.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Burkina Faso Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Burkina Faso, statutory audits are mandatory for all public companies and limited liability companies that exceed one of three thresholds: (i) share capital in excess of CFA franc 10 million; (ii) sales volume greater than CFA franc 250 million; or (iii) have more than 50 permanent employees. Banking and insurance laws also require mandatory audits of banks, financial institutions, and insurance companies.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide auditing services as required by your business.


The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. The major banks in Burkina Faso are Bank of Africa (BOA), Banque Atlantique Burkina Faso, Banque de l’Habitat du Burkina Faso, Banque Régionale de Solidarité, Société Générale de Banques au Burkina (SG-BB), Banque Internationale du Burkina (BIB), Banque Sahélo-Saharienne pour l’Investissement et le Commerce (BSIC), Banque Internationale pour le Commerce, l’Industire et l’Agriculture du Burkina, Banque Commerciale du Burkina, Ecobank Burkina, Banque Agricole et Commerciale du Burkina, United Bank for Africa, Coris Bank. All the banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Burkina Faso.

Legal and Compliance

In Burkina Faso, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Burkina Faso legal and compliance requirement to be followed by incorporated entities:

·       To Register at Centre des Formalités des Entreprises (CEFORE) for company registration, tax number (IFU), labor, and social security

·       Listed entities must comply with regulations issued by the regional stock exchange, Bourse Régionale des Valeurs Mobilières.

·       Insurance companies are required to apply accounting standards outlined in the Conférence Interafricaine des Marchés d’Assurance

·       The entities to pay an apprenticeship tax (TPA) on the salaries of all national and foreign employees

·       The companies must pay a registration tax equal to 3 percent of the company’s capital

·       The legal, regulatory, and accounting systems are transparent and consistent with international norms that needs to be adhered by the Companies

·       The companies need to comply with the legal system that protects and facilitates acquisition and disposition of all property rights, including intellectual property.

·       The mining companies to invest in social infrastructure, such as health centers and schools, and other projects to benefit the local populations

YourGlobalPro professionals can assist you with Burkina Faso Legal and Compliance requirements.

HR and Employment Law and Immigration / VISA

In Burkina Faso, the applicable labor regulations would apply to the entrepreneurs wishing to hire workers. Below are some of the important points in relation to HR & employment law in Burkina Faso:

·       The Burkinabè labor code is enforced by a labor court

·       Unions are well organized and defend employee interests in industrial disputes

·       When non-nationals are hired, the Director of Labor authorizes their employment contract -and statements must be made to the Regional Inspector of Work and Social Rules before the startup of any new enterprise

·       The employer must advise employees of termination at least 30 days in advance

·       Visa are required by all nationals except those of the Economic Community of West African states

·       Maximum length of a single fixed-term contract is 24 months

·       Maximum number of working days per week 6.

·       22 days Paid annual leave for a worker with 1 year of tenure (working days).

·       Maximum length of probationary period is 2 months.

·       Minimum length of maternity leave is 98 calendar days.

·       Five fully paid days of sick leave a year.

Country Statistics

Capital Ouagadougou
Largest city Ouagadougou
Total Area 274,200 Sq. Km.
Population 17,322,796
Density 64 / Sq. Km.
Currency West African CFA franc (XOF)
Government Unitary Semi-Presidential Republic
Official Language French
Recognized National Languages Mu00f2oru00e9, Fulani Dioula
Religion Islam: 60.5%
Christians: 23.2%
Traditional indigenous beliefs: 15.3%
Other religions: 0.6%, and
None: 0.4%
Government Offices Hours Monday to Saturday (0730-1130 and 1500-1700)
Business offices Hours Monday to Saturday (0730-1130 and 1500-1700)
Banks and exchange Houses Hours Monday to Friday (0730-1130 and 1500-1700)

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