Congo Republic

Company Formation in Republic of Congo

The Democratic Republic of the Congo 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 Republic of Congo for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

The Republic of Congo Republic (Congo Republic) is country located in Central Africa. It is bordered by the countries of Gabon, Cameroon, Central African Republic and the Democratic Republic of the Congo Republic. It also faces the Atlantic Ocean in the west. The country is also considered as one of main oil producers in Sub-Saharan Africa. The below content will explain you in detail about the requirements for the company formation in the Congo Republic, know more about the process of trademark registration in the Congo Republic and understand the Congo Republic Legal Compliance requirements.

Doing Business Introduction

The economy of Congo Republic is composed of village agriculture and handicrafts and an industrial sector based largely on petroleum and support services. Petroleum extractions are the primary industry in the Congo Republic. Natural gas and diamonds are part of the country’s exports. As per Doing business report of The World Bank –Congo Republic ranks 177 for 2017 survey in terms of ease of doing business.

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

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 the Congo Republic are as mentioned below:

·       Limited Liability Company (SARL)

·       Public Limited Company (SA)

·       Branch

·       Representative Office

Time Frame for Incorporation of Company in the Congo Republic 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 the Congo Republic to be completed is 26-28 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in the Congo Republic:

·       Congo Republic’s membership in the Organization for Harmonization of Business Law in Africa (OHADA) provides relative ease in the company formation process.

·       The market is advantageous for investors in the food industry since the country is dependent on imported food products.

·       The Congo Republic has untapped reserves of minerals including diamonds, potash, uranium, zinc, lead, phosphate and copper.

·       Tax incentives are provided to companies that have investments of at least XAF 100 million. Further benefits are also provided to companies whose businesses are in remote areas.

Tax Registration and Filing

Congo Republic companies are taxed on the territoriality principle.

Corporate Income Tax Rate 30%
Minimum Corporate Tax 1% of turnover
Corporate Income Tax for Agricultural Companies 25%
Capital Gains Tax 30%
Branch Profits Tax Rate 15%
Dividends 15%
Interest 20%
Royalties 20%
Payments for Non-commercial Services and Activities 5%
Revenues Earned by Certain Foreign Companies 7.7%
Value Added Tax 18.9%
Fiscal Year 1 January to 31 December.
Corporate Tax Returns To be filed on or before May 20

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. The Congo Republic has double tax treaty agreements with the France, Italy, and Mauritius. As a member of the Central African Economic and Monetary Community (CEMAC), Congo Republic also has tax treaties with Cameroon, Central African Republic, Chad, Equatorial Guinea and Gabon.

Trademark registration

Trademark registration in the Congo Republic is done in accordance with the African Intellectual Property Organization (OAPI).  The registered trademark will be valid for 10 years and can be renewed for another 10 years.  It takes approximately 12 months from first filing to registration

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

·       Persons desiring to carry on a commercial activity in the form a company shall establish by a notarial deed or by any other instrument that ensures legal validity company Articles of Association.

·       Public limited companies are required to avail or commission a public notary.

·       Private limited company shall be managed by one or more natural persons appointed by the partners in the Articles of Association or in a subsequent instrument.

·       Extraordinary general meetings shall be held to amend the articles of incorporation, to authorize mergers, scissions, transformations and d partial contributions of assets, to transfer the registered office and to wind up the company prematurely or extend the duration of its life.

Accounting Services

The accounting standards applicable in the Congo Republic are those established in the OHADA Accounting System (SYSCOHADA).  Bank, financial institutions, and insurance companies are regulated by a sector-specific accounting standard.  Entities except representative offices are required to prepare annual financial statements.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Congo Republic 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

Statutory audit is required for public limited companies.  Limited liability companies are required to appoint an auditor if their share capital exceeds $110,000 or annual turnover exceeds US$275,000 or employees is more than 50 permanent staff.

YourGlobalPro professionals provide you auditing services as required by your business in the Congo Republic.

Banking

Opening an account in a bank is quite easy in the Congo Republic. The documentation requirement differs from Bank to Bank and needs to have complied for the Bank account opening.

The banks in the Congo Republic are Banque Commerciale Internationale (BCI), BGFIBank Congo Republic (BGFI), Crédit du Congo Republic (CDC) and Ecobank.  All 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 an opening bank account for your business plan in the Congo Republic.

Legal and Compliance

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

·       Limited liability companies (LLC) in the Congo Republic are required to have at least 1 director who has been a resident in the country for at least 2 years, as well as 1 shareholder of any nationality.

·       Public limited companies (PLC) in the Congo Republic are required to have at least 1 director who has been a resident in the country for at least 2 years and 1 shareholder, either an individual or a corporate body of any nationality.

·       A minimum required capital of XAF 1 million and XAF 10 million are required for LLCs and PLCs, respectively.

·       Branch offices are required to appoint at least 1 director, of any nationality, to act as in charge of the branch’s activities.

·       Representative offices in the Congo Republic are not allowed to perform or enter any commercial activity.

YourGlobalPro professionals can assist you in the Congo Republic Legal and Compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR and Employment Law in the Congo Republic:

·       The maximum length of fixed term contracts including renewals is 24 months.

·       Employers must pay a premium of 13.7% of hourly pay for overtime work

·       Paid annual leaves regardless of tenure is a minimum of 5 days. Paid annual leaves are as follows: Employee with 1 years of tenure: 26 days Employee with 5 years of tenure: 31 days Employee with 5 years of tenure: 32 days

·       Maternity leave granted is a minimum of 105 days.

·       Non-residents seeking to work legally in the Congo Republic are required to have a temporary work visa.

·       Temporary residence permit issues to non-residents are valid only for one year. The permits is issued by the General Director of Immigration Services in Brazzaville.

Country Statistics

Capital Brazzaville
Largest City Brazzaville
Total Area 342,000 Sq. Km.
Population 4,662,446
Density 12.8 / Sq. Km.
Currency Central African Franc (XAF)
Government Presidential Republic
Official Language French
Religion Christianity: 85.9% Others: 14.1%
Government Office Hours Mon-Fri (07:30-15:30 Hrs)
Business office Hours Mon-Fri (07:30-15:30 Hrs)
Banking Hours Mon-Sat (0800 to 1630 Hrs)

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