Burundi

Company Formation in Burundi

Burundi 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 Burundi for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

The Republic of Burundi (Burundi) is a landlocked country in the African Great Lakes region of East Africa, sharing border with Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. It is one of the smallest countries in Africa and lies on a rolling plateau in the Centre of Africa. The below content will explain you in detail about the requirements for the company formation in Burundi, know more about the Process of trademark registration in Burundi and understand the Burundi Legal and Compliance requirements.

Burundi

Doing Business Introduction

The Country’s largest source of revenue is coffee and natural resources include uranium, nickel, cobalt, copper and platinum. As per Doing business report of The World Bank –Burundi ranks 157 for 2017 survey.

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

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 Burundi are as mentioned below:

  • SPRL (Société de Personnes à Responsabilité Limitée)
  • A., (Société Anonyme)
  • SURL (Société Unipersonnelle à Responsabilité Limitée)
  • Cooperative Company
  • Public Company ; and
  • Semi­public Company

Time Frame for Incorporation of Company in Burundi varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimates the time required for the process of Company formation in Burundi to be completed is 4-6 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Burundi:

  • Exempt from transfer duties on acquisition of buildings and land
  • A reduced tax rate on profits to Investor
  • The main investment areas are tourism, agribusiness, transportation, light assembly plants and information and communication technology
  • The incorporation of companies in Burundi have recently been significantly reduced and centralised.
  • The Government created the Burundi Investment Promotion Authority (BIPA) to promote investment
  • No overall economic or industrial strategies that discriminate against foreign investors
  • No specific limits on foreign ownership or control of enterprises
  • No requirements that investors purchase from local sources or export a certain percentage of their output
  • No requirement that national’s own shares in foreign investments.

Tax Registration and Filing

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

Corporate Income Tax Rate 35%
Branch Profits Tax Rate 30% (Non-resident companies carrying on business activities in Burundi are subject to a minimum tax equal to 1% of their turnover, irrespective of the amount of their profits.)
Branch Remittance Tax 15%
Capital Gains Tax 15%
Value Added Tax 18%
Dividends 15%
Interest 15%
Royalties 35%
Fiscal Year Calendar Year

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.

Burundi has no signed tax treaty with any jurisdiction with respect to the elimination of double taxation. Double tax treaties with some East African Community countries, Common Market for Eastern and Southern Africa countries, Egypt and France are in the process of negotiation.

Trademark registration

For trademark registration in Burundi, an application needs to be made to the Ministry of Trade, Industry and Tourism. It takes approximately 10-12 months’ timeframe to complete the process of trademark registration in Burundi. The Trademark Registration in Burundi is valid 10 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.  It can also be renewed during the grace period of six (6) months after expiration, upon payment of a late renewal fee.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Burundi 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 Burundi:

  • 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.
  • Annual tax return to be filed by the Companies.

Accounting Services

In Burundi, a national accounting plan – Le Plan Comptable National 1985, applies to all entities, with different requirements based on the size of the enterprise. It is basically a simple historical cost accounting model. Proper books of accounts need to be maintained by the entities.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Burundi Business Setup 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 Burundi, statutory audits are mandatory for all companies – for the same Annual financial statement prepared every Year. Also, an approved auditor must be appointed by the entity.

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

Banking

In Burundi, formal banking sector is small in size and remains at an early stage of development. The central bank is the Bank of the Republic of Burundi (Banque de la République du Burundi, (BRB). There is very limited information available on the banking system in Burundi. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.

The major banks in Burundi are FinBank Burundi, Banque Commerciale du Burundi (Burundi Commercial Bank) (BANCOBU), Banque de Gestion et de Financement (BGF), Banque Burundaise pour le Commerce et l’Investissement (Burundi Bank of Commerce and Investment) (BBCI), Banque de Credit de Bujumbura (Bujumbura Credit Bank) (BCB) – A member of the Bank of Africa Group, CRDB Bank Burundi, Diamond Trust Bank Burundi, Ecobank Burundi, Interbank Burundi (IBB), KCB Burundi. All banks are stable, reliable and offer the same level of services.

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

Legal and Compliance

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

  • The company seal is not required by law but it is done in practice to authenticate their documents.
  • The companies to submit all documents to the one-stop shop Agence de la Promotion et de l’Investissement (API) and obtain registration certificate and the tax identification number.
  • To open bank account for the Company
  • To Obtain the Tax Identification number

YourGlobalPro professionals can assist you in Burundi Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

  • In Burundi, 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 Burundi:
  • The worker is entitled to the annual leave of 1 and 2/3 working days per month completed of service, that is to say 20 opened days for seniority of service of twelve calendar months
  • The duration of work shall be normally of 8 hours per day and 45 hours per weeks
  • The International Labour Organisation (ILO) conventions in force protecting workers’ rights
  • No limit for Maximum length of a single fixed-term contract
  • Maximum number of working days per week is 6 days
  • Paid annual leave for a worker with 1 year of tenure (working days) is 20 days Maximum length of probationary period is 6 month Minimum length of maternity leave (calendar days) is 84 days
  • Work permit and visa to be obtained by the employer for foreign national employee. A foreigner wishing to live and work in Burundi will have to apply for a visa d’etablissement and to obtain an invitation authenticated by the Immigration Office in Burundi or by the Ministry of External Relations and International Cooperation, which forms part of the visa application.

Country Statistics

Capital Bujumbura
Largest city Bujumbura
Total Area 27,834 Sq. Km.
Population 11,178,921
Density 401.6 / Sq. Km.
Currency Burundian Franc (FBu) (BIF)
Government Presidential Republic
Official language French, Kirundi
Religion Christian: 80-90%
Protestant and Anglican Practitioners: 15-25%
Traditional Indigenous Religious Beliefs: 5%
Muslim: 2-5%
Government Offices Hours Monday to Friday 8:00 a.m. to 11:00 a.m. and 1:00 p.m. to 4:00 p.m.
Business offices Hours Mon to Fri 0730-1200 and 1400-1730
Banks and Exchange Houses Hours Monday-Friday: 0730-1200 and 1400-1730 Banks close between 12:00-14:00 for lunch break

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