How To Start A Business in Senegal

How to Start a Business in Senegal - Step by Step Guide

Starting a business in Senegal involves a series of steps that vary slightly for local and foreign investors. This guide provides detailed information, including the fees and taxes involved in each step of the process.

Step-by-Step Guide for Locals

1. Choose Your Business Structure: In Senegal, businesses are commonly set up as Sole Proprietorships (Entreprises Individuelles) or Limited Liability Companies (Société à Responsabilité Limitée - SARL).
2. Register Your Business Name: Business name registration must be done through the Senegalese National Agency for the Promotion of Investments (APIX).
   Senegal National Agency for the Promotion of Investments (APIX)
   Fees: STN 10,000 to STN 15,000 (depending on the business type).
3. Obtain a Tax Identification Number (TIN): The TIN is obtained from the Senegalese Tax Department (Direction Générale des Impôts et des Domaines - DGID).
   Senegal Tax Department (DGID)
   Fees: Free.
4. Register for VAT: If your business's annual turnover exceeds XOF 50 million, you must register for VAT with the tax authorities.
   Fees: Free, but monthly VAT filings are required.
5. Register with the National Social Security Fund (CSSS): If your business has employees, you must register with the CSSS for social security contributions.
   National Social Security Fund (CSSS)
   Fees: 16.5% of the employee's monthly salary (12.5% employer contribution, 4% employee contribution).
6. Obtain Relevant Permits: Depending on the type of business, you may need additional permits or licenses, particularly for sectors like construction, mining, and tourism.
   Fees: Varies depending on the business type.
7. Open a Business Bank Account: You must open a bank account in the name of your business with any of the authorized commercial banks in Senegal.
   Fees: Typically between XOF 10,000 and XOF 15,000 for account opening.

Step-by-Step Guide for Foreign Investors

1. Choose Your Business Structure: Foreign investors can establish a variety of business structures, including limited liability companies (SARL) or joint ventures.
2. Register with APIX: Foreign investors must register their business with the Senegalese Agency for the Promotion of Investments (APIX) to receive an investment certificate.
   Senegal National Agency for the Promotion of Investments (APIX)
   Fees: No registration fee, but the processing of the investment certificate may take up to 2 weeks.
3. Obtain a Tax Identification Number (TIN): After obtaining the investment certificate, foreign investors must apply for a TIN from the Senegalese Tax Department.
   Senegal Tax Department (DGID)
   Fees: Free.
4. Register for VAT: Businesses with a turnover exceeding XOF 50 million are required to register for VAT and comply with monthly filing requirements.
   Fees: Free registration, but monthly VAT returns are required.
5. Register with the National Social Security Fund (CSSS): Foreign companies must register with the CSSS to contribute to the pension and social insurance of their employees.
   National Social Security Fund (CSSS)
   Fees: 16.5% of the employee's salary (12.5% employer contribution, 4% employee contribution).
6. Obtain Necessary Permits and Licenses: Depending on the nature of the business, foreign investors may need additional permits or licenses.
   Fees: Varies by sector.
7. Open a Business Bank Account: Foreign investors must open a business bank account with a recognized bank in Senegal.
   Fees: Typically XOF 10,000 to XOF 15,000 for account setup.

Estimated Duration

• For Locals: 2-3 weeks
• For Foreign Investors: 3-4 weeks (including investment certificate process)

Useful Resources

• Senegal National Agency for the Promotion of Investments (APIX)
• Senegal Tax Department (DGID)
• National Social Security Fund (CSSS)