The country has been one of the fastest growing economies in Africa in the past decade. After the discovery of large oil reserves in the 1990s, Equatorial Guinea became the third-largest producer of oil in Sub-Saharan Africa, after Nigeria and Angola. More recently, substantial gas reserves have also been discovered. However, the country macroeconomic and fiscal situation has deteriorated following the oil price drop. Once you decide to open a new company location in Equatorial Guinea, you have to make several important decisions, such as where you’ll base your headquarters, what kind of business activities you want to perform, and what other companies you should form relationships with. But that’s on top of setting up your Equatorial Guinea subsidiary and handling your parent company’s activities back at home.
How to Set up an Equatorial Guinea Subsidiary
You can’t start setting up your Equatorial Guinea subsidiary until you know where you want to incorporate and what kind of subsidiary is best for you. Different regions or cities can operate like states in the US with their own Equatorial Guinea subsidiary laws and regulations. If you’re not familiar with the different areas, we recommend working with a third-party expert who can help you choose a friendly location for foreigners.
Next you need to pick an entity from Equatorial Guinea’s subsidiary options. You can incorporate as a limited liability company (LLC), public limited company, or branch. Each option has its own laws related to activities, freedoms, and more. If you plan to offer a wide range of products and activities, you should incorporate as an LLC, while companies that will provide a limited range of operations can choose a branch.
Setting up your Equatorial Guinea subsidiary as an LLC includes the following steps:
– Having a notary legalize company statutes
– Registering your public deed in the commercial registry
– Opening a local bank account and obtaining a bank certificate
– Obtaining a certificate of solvency
– Obtaining a certificate of fiscal solvency
– Applying for authorization of establishment by the Prime Minister
– Applying for tax registration
– Notifying the Minister of Labour when you start operations
– Registering for social security
– Applying for registration and obtaining a license with the Department of Small- and Medium-Size Companies at the Ministry of Commerce
– Applying for registration and obtaining a license with the Department of Commerce at the Ministry of Commerce
– Applying for registration and obtaining a license with the Minister of Development and Planning
– Paying required fees into the treasury’s bank account and obtaining a confirmation of the payment
– Obtaining a tax identification number (NIF)
– Obtaining a registration number with the Ministry of Labour
– Obtaining a social security number
– Equatorial Guinea Subsidiary Laws
Equatorial Guinea’s subsidiary laws change depending on the entity you choose as well. For example, LLCs require shares, and shareholders are limited in liability by the amount of capital they contribute. All foreign-owned LLCs need to have at least 35% of shares and a third of director positions held by citizens of the country. LLCs also require an auditor to submit financial statements, and you need to turn in an audit every year. All accounting books should be in French and kept at your registered office to meet OHADA laws.
Benefits of the Equatorial Guinea Subsidiary Setup Process
Although it can take you weeks or months to finally incorporate, you’ll benefit from beginning work in Equatorial Guinea. Incorporating as an LLC will also come with additional benefits, as you won’t have to worry about your parent company incurring liability from the subsidiary’s actions. You can also operate your subsidiary independently of the parent company, and you can tailor operations to Equatorial Guinea’s culture.
How we can help you
If you are considering forming a business or you need expert help with company registration in Equatorial Guinea, 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 Equatorial Guinea 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 email@example.com