Sudan

Company Formation in Sudan

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

About the Country

Republic of the Sudan (Sudan) is a country in Northern Africa. It is the 3rd largest country in the African continent. It is bordered by Egypt, Eritrea, Ethiopia, South Sudan, Central African Republic, Chad, and Libya. The below content will explain you in detail about the requirements for the company formation in Sudan, know more about the process of trademark registration in Sudan and understand the Sudan Legal and Compliance requirements.

Sudan

Doing Business Introduction

Agricultural production is an important industry in Sudan as it employs 80% work force and provides one-third of the Gross Domestic Product of the country.  The country has also fast industrial development in agricultural processing, electronics assembly, plastics manufacturing, furniture, tanning, sugar production, meat processing and various light industries located in any of the 10 Industrial areas in its capital, Khartoum. Further, the country is targeting to become a medical industry hub in East Africa. Sudan has 2 free trade zones, one in Suakin on the Red Sea and the other in Aljaily near Kharthoum. As per Doing business report of The World Bank –Sudan ranks 168 for 2017 survey in terms of ease in doing business.

 

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

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 Sudan are as mentioned below:

·       Limited Liability Company

·       Public Limited Company

·       Branch Offices

·       Representative Office

 

Time Frame for Incorporation of Company in Sudan 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 Sudan Company formation process to be completed is 36-40 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Sudan:

·       Investors can benefit from bilateral treaties entered by Sudan with other countries, including China, Germany, Netherlands and Switzerland.

·       Sudan has established free zones that provide tax incentives such as full corporate tax exemption for 15 years, full personal tax exemption for expatriates, import and export duty exemption on goods entering and exiting the zone, tax exemption on purchase of real estate within the zone a free repatriation of capital.

·       Sudan has rich mineral resources such as asbestos, chromite, cobalt, copper, gold, granite, gypsum, iron, kaolin, lead, manganese, mica, natural gas, nickel, petroleum, silver, tin, uranium and zinc.

 

·       Sudan allows 100% foreign ownership for companies.

Tax Registration and Filing

Below are some crucial points in relation to taxation rates in Sudan.

Corporate Income Tax Rate 10% / 15%
Capital Gains Tax 5%
Branch Profits Tax Rate 10% / 15%
Withholding Taxes Dividends - 1%
Interest - 7%
Royalties - 15%
On certain fees - 7% / 15%
Value Added Tax 17%
Fiscal Year 1 January to 31 December
Annual Tax Returns To be filed by 30th 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. Sudan has double tax treaty agreements with Bahrain, China, India, Indonesia, Iran, Malaysia, Qatar, Romania, Tunisia, Turkey and U.K. As part of the Arab Economic Union, Sudan have tax treaties with Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Palestine, Saudi Arabia, Somalia, Syria, U.A.E. and Yemen.

Trademark registration

Sudan is a member country of the Madrid Protocol and the African Regional Intellectual Property Organization that allow effectivity of trademark registration in all member countries through a single application. The application process includes a formal examination, an examination of distinctiveness and a search for prior trademarks. It takes approximately 1-3 years from first filing to registration. The trademark registration in Sudan is valid for 10 years and can be renewable for another 10 years.

 

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Sudan for your business. For assistance or advice in the matter of the trademark registration in Sudan 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 Sudan:

·       Limited liability companies are not subject to company secretary requirements.

·       Public limited companies are required to appoint company secretary upon incorporation.

·       The company must provide a draft copy of the memorandum and articles of incorporation must be provided to the Companies Registrar for preliminary approval.

·       The memorandum and articles of incorporation must be signed by all founding shareholders and authenticated by a designated lawyer of the authentication authority.

·       The company must apply for and register with Tax Identification Number, Value added Tax, Labor Authorities and Social Insurance Fund.

 

·       Companies are required to use company seal obtained from the Sudan Currency Printing Press Co.

Accounting Services

Sudan has adopted the International Accounting Standards and International Financial Reporting Standards for its accounting principles. All entities except for representative offices are required to prepare annual financial statements.

 

YourGlobalPro professionals assist you with the entire bookkeeping and accounting services for your Sudan 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 Sudan, public limited companies are required to appoint an auditor for statutory audit purposes.

 

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

Banking

Opening an account in a bank is quite easy in Sudan. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. The major banks in Sudan are Bank of Khartoum, Agricultural Bank of Sudan and National Bank of Sudan.  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 Sudan.

Legal and Compliance

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

·       Limited liability companies must have at least 2 shareholders of any nationality and at least 1 director who is a resident of Sudan.

·       Public limited companies must have at least 7 shareholders, of any nationality, and 2 directors, one of which must be a resident of Sudan.

·       The minimum required share capital for limited liability and public limited companies is equivalent to US$25,000.

·       Branches are not considered as separate legal entity and the parent company is legally liable for all actions of the branch.

·       Branches are required to appoint 1 resident manager and a deposit capital equivalent to US$50,000.

·       Representative office must appoint a resident individual in Sudan.

 

YourGlobalPro professionals can assist you with the Sudan 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 Sudan:

·       Maximum length of single fixed term contract is 24 months. Maximum length of renewable fixed term contracts including renewals is 48 months.

·       Maximum number of working days is 6 days.

·       Employers must pay a premium of 50% of hourly pay for overtime work

·       Paid annual leaves are as follows: Employees with 1 year of tenure: 20 days Employees with 5 years of tenure: 25 days Employees with10 years of tenure: 25 days

·       Non-Sudanese citizens wishing to work in Sudan must obtain a work permit. This is normally arranged by the employer or sponsor with the Ministry of Interior.

 

·       Requirements for the work permit includes invitation letter from the organization stating the profession, place of work, contract term of the employee, a proof of good conduct from the origin country of the employee and resume and resume and academic qualification.

Country Statistics

Capital Khartoum
Largest City Khartoum
Total Area 1,886,068 Sq. Km.
Population 40,235,000
Density 21.3 / Sq. Km.
Currency Sudanese Pound
Government Dominant-party Federal Semi-Presidential Republic
Official Languages Arabic, English
Religion Islam: 97%
African Traditional Religion: 1.5%
Christianity: 1.5%
Government Office Hours Sat- Thurs: (0800- 1400 Hrs)
Business Office Hours Sat-Thurs: (0800-1400; 1800-2000 Hrs)
Bank Hours Sat-Thurs: (0830-1200 Hrs)

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