Company Formation in Senegal

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

About the Country

The Republic of Senegal (Senegal) is a country in West Africa. It is bordered by Mauritania, Guinea, Guine-Bissau and the Gambia.  Senegal is named after the river that borders the country to the east and the north. Senegal’s economy is centered mostly on commodities and natural resources. Senegal peacefully attained independence from France in 1960 and has since been among the more politically stable countries in Africa. The below content will explain you in detail about the requirements for the company formation in Senegal, know more about the process of trademark registration in Senegal and understand the Senegal Legal and Compliance requirements.


Doing Business Introduction

A Large part of Senegal’s economy is comprised of the following industries: food processing, mining, cement, artificial fertilizer, chemicals, textiles, refining imported petroleum, and tourism. Like other African nations, agriculture is also a major sector. Some important cash crops include peanuts, sugarcane, cotton, green beans, tomatoes, melons, and mangoes.  Senegal also exports different goods including fish, chemicals, cotton, fabric, groundnuts and calcium phosphate to foreign markets. 26.7% of the country’s exports are directed to India, furthermore, other major foreign export markets are the United States, Italy and United Kingdom. Senegal also has one of the best-developed tourist industries in Africa. As per Doing business report of The World Bank –Senegal ranks 147 for 2017 survey in terms of ease of doing business.

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

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 Senegal are as mentioned below:

·       Limited Liability Company (SARL)

·       Public Limited Company (SA)

·       Branch (Succursale)

·       Representative Office (Bureau de Representation)

Time Frame for Incorporation of Company in Senegal 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 to be completed is 6-8 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Senegal:

·       Stable political environment

·       Free Export Enterprise status can be granted to companies exporting 80% of their good abroad. Benefits from this include the following:

·       Reduced income tax rate

·       Tax exemption employee wages, registration fees and stamp duty

·       Tax exemption on raw materials and production machinery

·       The cost of business operations is low.

Tax Registration and Filing

Senegalese companies are taxed based on the territoriality principle. As a result, companies carrying on a trade or business outside Senegal are not taxed in Senegal on the related profits.

Corporate Income Tax Rate 30%
Capital Gains Tax 30%
Branch Profits Tax Rate 30%
Branch Remittance Tax 10%
Withholding Taxes Dividends - 10%
Long Term Bonds - 6%
Short term bonds - 13%
Bank Interest - 8%
Interest on Deposit - 20%
Interest Payments - 16%
Royalties - 20%
Directoru2019s Fee - 16%
Certain Services and Activities - 10%
Value Added Tax 18%
Fiscal Year 1 January to 31 December
Filing Annual Tax Returns By 30 April

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. Senegal has double tax treaty agreements with Belgium, Canada, France, Italy, Mauritania, Mauritius, Morocco, Norway, Qatar, Spain and Tunisia. As part of the WAEMU, Senegal has tax treaties with Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger and Togo.

Trademark registration

The trademark registration in Senegal follows Organisation Africaine de la Propriété Intellectuelle (OAPI) Treaty, which includes protection in its 15-member countries. The life of the trademark registration in Senegal is 10 years and renewable for another 10 years.  It takes approximately 6-10 months from first filing to registration

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

·       Accounting books must be kept in accordance with the Organization for the Harmonization of Business Law in Africa (OHADA) laws.

·       Every corporation must be registered with the Trade Registry.

·       A notice of registration must be published with 15 days after the registration is completed. Notice must be signed by the notary public and must include the following: - Corporation’s purpose - Life of the corporation - Amount of cash contributions and contributions in kind - Number of shares issued in consideration of contributions in cash, in-kind contributions, and industry contributions - Surname, first names, and addresses of the indefinite associates of the social debts

Accounting Services

Accounting practices in the Senegal are set by the West African Accounting System, a common accountancy plan created to harmonize accounting practices in West Africa. Books of accounts must be maintained in French in accordance to OHADA guidelines.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Senegal 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 all business entities except for representative offices. These entities are also required to submit annual audited financial statements to concerned government departments. Public Limited Companies must assign an approved auditor.

YourGlobalPro professionals provide you auditing services as required by your business in Senegal.


Opening an account in a bank is quite easy in Senegal. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.

The major banks in Senegal are Citigroup, Banque Internationale pour le Commerce et l’Industrie du Sénégal (BICIS), Ecobank Sénégal, Bank of Africa Sénégal and Banque Atlantique Sénégal.  All banks are stable, reliable and offer the same level of services.

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

Legal and Compliance

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

·       Business activities involving public road transport, health, fisheries, and maritime transport require that 50% of the capital must be owned by a Senegalese national.

·       Businesses activities involving pharmacies, medical offices, clinics, and education are required prior authorization.

·       Limited liability companies must have at least 1 director and 1 shareholder of any nationality. A minimum paid up capital of US$2,000 is required.

·       Public limited companies are required to have at least 1 shareholder and 1 director of any nationality. A minimum paid capital of US$20,000 is required

·       The scope of allowed activities for branch entities is defined by the Parent company. Branches do not have an independent legal personality or its own assets.

·       Branches of foreign entities have a life of 2 years unless extension is granted by the Ministry of Trade.

·       Representative offices are not allowed to conduct income generating activities within Senegal. Activities of representative offices are limited to the following: - Market Research - Business promotions related to the parent company

YourGlobalPro professionals can assist you with Senegal Legal and Compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Senegal:

·       Labor contracts with term exceeding 3 months must be presented first to the Labor Department.

·       The term of fixed term labor contracts including renewals is 2 years. Fixed term labor contracts can only be renewed once.

·       Long term contracts may be preceded first by a probation period of at a maximum 6 months.

·       Overtime work must be paid at a premium of 10% of hourly rate.

·       Paid annual leaves regardless of tenure is a minimum of 24 days.

·       Entry visa will be required for Nationals of countries not belonging to the West African Economic and Monetary Union (WAEMU) member countries.

·       For any stay lasting more than three months, foreign nationals must apply for a foreigner’s ID card.

Country Statistics

Capital Dakar
Largest City Dakar
Total Area 196,712 Sq. Km.
Population 15,589,485
Density 68.7 / Sq. Km.
Currency CFA Franc
Government Semi-Presidential Republic
Official Language French
Religion Islam: 92%
Christianity: 7%
Traditional African Religion: 1%
Government Office Hours Mon-Fri (0800-1730 Hrs)
Business office Hours Mon-Fri (0800-1700 Hrs)
Banks Mon u2013 Sat (0900-1800 Hrs)

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