Pushing your company into West Africa can make a big difference in your daily operations. You’ll get to form new business relationships and show your associates that you’re committed to operating overseas. Despite all the benefits, however, learning how to set up your Burkina Faso subsidiary is a complex process that can take several months to complete. Plus, that’s on top of running your parent company, hiring new employees for your subsidiary, and learning a whole new set of labour laws.
How to Set up Your Burkina Faso Subsidiary
Setting up your Burkina Faso subsidiary depends on several key factors, including the location of your office space. Various cities and regions can operate like states, using their own laws that impact incorporation. Always research a potential location before incorporating to see if it’s easy or difficult to set up a subsidiary, or work with a consultant who can recommend the best locations.
You have a variety of options when it comes to setting up your Burkina Faso subsidiary. The country allows entities such as a limited liability company (LLC), branch office, or public limited company. Each structure has its own laws, regulations, and restrictions on operations, which will impact how you run your Burkina Faso business.
Companies planning to operate in the country long-term often choose to set up an LLC. With an LLC, you can offer a wide range of products and services, enjoy tax-friendly laws, and protect your parent company from liability. The steps of the Burkina Faso subsidiary setup process include:
– Opening a Burkina Faso bank account
– Depositing your minimum share capital in your bank account
– Providing proof of your capital deposit
– Registering with the Centres de Formalités des Enterprises (CEFOREs)
– Applying for any necessary licensing
– Obtaining a business license through the Ministry of Commerce
– Registering for all accounting and tax requirements
– Burkina Faso Subsidiary Laws
Burkina Faso’s subsidiary laws depend on the type of entity you choose for incorporation. For example, LLCs have separate rules compared to branch offices and public limited companies. You need at least one director and one shareholder, who can be of any nationality, to set up your Burkina Faso subsidiary as an LLC. Completing the process requires at least $2,000 in paid-up capital that must be deposited in a local bank account.
LLC tax obligations include appointing an auditor to submit annual audited financial statements. You also need to keep your financial records in French at your office according to OHADA laws. If you’re not fluent in French, you need to hire a team to keep these statements or work with a third party.
Benefits of the Burkina Faso Subsidiary Setup Process
Although it can take a while to set up your Burkina Faso subsidiary, the biggest benefit will be that you can work just like a local company. LLCs will also protect both your parent company and your subsidiary. The parent company has limited liability from the subsidiary, and the subsidiary has the opportunity to work as a separate entity.
You can recognize more benefits faster by working with a global PEO like Globalization Partners. Instead of spending months learning Burkina Faso subsidiary laws and attempting to incorporate, remember that we can help you start working in a matter of days. Our Burkina Faso subsidiary outsourcing services mean that we can shoulder all compliance and give you peace of mind to run your company.
What Do You Need to Set up a Subsidiary?
Companies looking to expand to Burkina Faso through establishing a subsidiary need the time and money to complete the process. You may face fees throughout the incorporation process, and it can help to work with your accounting department to set a budget. You should also prepare to spend time traveling back and forth to Burkina Faso or nominate another company executive to handle travel.
How we can help you
If you are considering forming a business or you need expert help with company registration in Burkina Faso, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.
Please use our Company Formation Wizard if you would like to set up your registered company in Burkina Faso or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at firstname.lastname@example.org