If you are planning to enter the field of international trade in the African continent, you may have thought about registering a company in the African continent. Senegal is an independent and developing country in West Africa. Although the country of Senegal has a small area, it has performed very well in terms of politics.
Privileges for foreign traders in Senegal
One of the privileges that Senegal has considered for foreign businessmen is the examination of their complaints in the commercial court based on consular judgment. Conciliation in this court is mandatory and all decisions are made in less than 3 months.
The head of the Dakar Commercial Court says: “Consular judges know the different commercial areas inside the country. For example, in our records, we reached a compromise in a case because one of the internal experts was aware of the situation in the construction sector in Senegal, and we were able to deal with the case within a day.”
Creating a data sharing system for safe investments and reducing the cost of credit is one of the measures taken by the banking sector to facilitate the work of foreign investors.
The head of the banker’s association in Senegal says: The change in the relevant statistics shows that the confidence of foreign investors in Senegalese banks has increased
In addition to attracting foreign businessmen, Senegalese investors abroad also return to their country. Vado Niang is one of these people. He has returned to Senegal after 20 years of working in the luxury hotel industry in the United States. He has invested 2 million euros to establish the first luxury hotel in the capital. This project was completed in 9 months. Yanig has also benefited from the services of the National Investment Promotion Agency and tax incentive packages. He says about these services: “If you go to the National Investment Promotion Agency, you can establish your company within two days. After that, you will be given an investment code that will exempt you from paying taxes for three years. This entrepreneur plans to build a second luxury hotel and help expand to other African countries. “My dream is to expand my business across Africa and be a source of inspiration for other women to tell them that you can too,” she says.
Political and economic stability, strategic location in the region, is Senegal’s winning card to strengthen economic competitiveness in the entire black continent.
Establishment of Company: Limited Liability Company (SARL), Limited Company (SA), Simplified Stock Company (SAS)
There is a lack of discrimination between nationals and foreigners.
To encourage investment, Senegal has signed bilateral investment contracts with various countries (the United Kingdom, the United States, the Republic of Korea, Morris, Argentina, etc.). The purpose of these agreements is to promote and support the investment of citizens of one of the Contracting States in the territory of the contract. Their goal is to secure the business environment in Senegal is to increase the trust of the citizens of countries with which Senegal is contracted and supports Senegal investors in these countries. Senegal is the land of opportunities, the business environment in this country is favorable and constantly improving.
Senegal has signed several investment and investment agreements with dozens of partners around the world. In the space of globalization, these agreements improve the legal security of investments. They provide free return on investor’s capital and increase investment return, as well as to compensate for damage in the event of war, armed conflict or rebellion, providing the necessary forecasts to support foreign investment.
Investing in Senegal is an option for many people who want to create or increase their wealth. Although real estate is one of the most favorable investment global options, Senegal also offers other opportunities, including agriculture, digital, health and tourism. The Ministry of Economy has identified Senegal Planning and Cooperation Selection of many promising investment sectors, including construction industry, digital economy, health, agriculture and agricultural trade, especially rice cultivation, tourism, mining, seafood and aquaculture. The reasons for this choice are different, but often related to the richness of the soil, the geographical location and dynamics of the Senegal economy.
1- Digital or Finn Sing
3- Sanitation and Health
4- Investing in Senegal Tourism
To finance a business or start a business project in Senegal, it is necessary to consider:
Freedom of Establishment: Senegal law provides a lot of freedom for investors in all sectors of the economy. Foreigners are not subject to any limitations compared to Senegalese. Investors can also trust banking and financial services worldwide. Senegal has more than fifteen commercial banks, investing and developing. In this country, every investor, regardless of the origin, is free to restore capital. Senegal also offers a moderate level of risk according to “credit risk”.
Regulations: Senegal has announced in recent years a “investment code” that acts as a legal framework. In particular, it states that “foreign natural or legal persons behave similar to Senegalese natural or legal persons.” These regulations are in the oil and gas sectors, energy, health, agriculture, real estate, automobiles, logistics, commercial air transport, education, industrial transformation and digital sectors. Investors can register a company within 24 hours, create an LLC without the need for stocks, or obtain a license online within 40 days.
Declaration Obligation: Investments must be declared to Senegal’s investment promotion agency APIX. Each project must be registered in one of the branches of the Senegal Investment Promotion Agency. To register a business, it is necessary to refer to the business creation office, which provides access to various investment programs and obtaining the necessary permits to carry out business activities in Senegal. This agency also manages investment code approvals and free export company status.
The government of Senegal has taken several encouraging measures to attract foreign direct investment, including the following:
Also, a law has been approved in Senegal to establish a regime of special economic zones. Tax and customs benefits may be granted to companies approved under the Special Economic Zone regime for a maximum period of 25 years. These benefits can include the following: exemption from duties and taxes on the import of goods, raw materials and equipment (except general duties), applying a 15% corporate tax rate reduction; and exemption from some taxes and duties such as business tax and property tax. Today there are three special economic zones: one in the suburbs of Dakar, one in Sandiara and another in Andias.
The government of Senegal has also established the Independent Strategic Investment Fund of Senegal as a privileged partner for foreign investors whose mission is to promote the development of private equity in Senegal. In this context, the Strategic Investment Fund of Senegal provides intellectual and operational support to foreign investors, participation to strengthen the shares of companies, participation to manage the cash and resources of the Independent Strategic Investment Fund of Senegal, proposals for joint investment in its projects, development of projects A structure in the value chain and the facilitation of foreign capital entry and exit programs are introduced. Investing in the economic context of Senegal requires passing through the independent strategic investment fund, which provides the possibility of investing in the fields of logistics, industrial centers, energy, social housing and mines.
Senegal’s investment law provides specific incentives to encourage investment in key sectors such as agriculture and agribusiness, fishing, livestock and allied industries, manufacturing, tourism, mining and other sectors. Also, other incentives for investment include: exemption from paying customs duties (more than 3 years), suspension of value added tax (more than 3 years), granting tax credits of 40% for qualified investors and deductible within 5 years is considered. In addition, the prospect related to the exploitation of oil and gas resources has opened new opportunities for the private sector.
As a member of WAEMU (West African Economic and Monetary Union) and ECOWAS (Economic Community of West Africa), Senegal benefits from excellent regional economic integration that allows investors to access the community’s larger market, nearly 90 million. There are potential consumers in WAEMU and over 300 million potential consumers in ECOWAS. This economic integration is complemented by legal integration with its membership in the Organization for the Harmonization of Company Law in Africa (OHADA), created through these uniform and different laws. It creates a harmonized legal framework in many areas of business law (commercial law, collective and securities law among others) and dispute resolution (by arbitration). This regional economic and legal cooperation facilitates the stability of investments.
Ways to immigrate to Senegal:
Immigration special conditions
Migration through mobile
The Trade Facilitation Program in Senegal also led to the establishment of the DISEZ (Dakar Integrated Special Economic Zone).
The country is a member of CEMAS, ICRM, FZ, ECOWAS, Group of 77 and other organizations.
Businesses set up in DISEZ benefit from various tax incentives and infrastructural support such as registration, access to facility validation for eligible activities, support in administrative procedures, exemption from customs duties on equipment and raw materials, and income tax exemption. The right to hire foreign and Senegalese employees for foreign companies, the possibility of signing fixed-term contracts for 5 years and unlimited transactions in foreign currencies within the DISEZ, among other benefits available to investors, the investment code highlights the following principles.
In order to promote investment in this country, Senegal has also signed 29 bilateral agreements on the promotion and protection of investment with various countries (including France, Great Britain, Turkey, the United States of America, etc.), which provide wider benefits. offers for investors. Banking facilities, tax incentives and the consideration of commercial courts are among the measures that Senegal is taking to attract foreign investors.
Considering that there is war and instability in neighboring countries of Senegal, Senegal has political and economic stability.
The country of Senegal is a relatively developed country, so that it has created average welfare conditions, and of course, it was also under British occupation for a period. This country generally has the best economic security conditions. More than 50% of the country’s space is covered by natural resources and forests, so the country’s safety conditions are very important for business owners to enter.
Agricultural company registration in Senegal (cotton, peanuts);
Setting up a Senegalese chemical company (phosphate);
Registration of a fish farming company in Senegal (seafood and fish cultivation in special water farms of the Atlantic Ocean and the Senegal River, 1700 km long).
Types of company registration in Senegal
Existence of natural or legal persons of any nationality (at least two managers and shareholders);
No need to hire a secretary and register a local office;
Financial statements are required.
The registration period is 4 weeks.
You can register a Senegalese company without visiting in person and open a company account in a Senegalese bank remotely with the help of our experts.
In view of the above, investing in Senegal has significant advantages that can attract the attention of Iran’s private sector, especially the chambers of commerce and the export development center of our country. For more information, you can contact the legal unit of the Iran and African Continent Business Club every day and consult with our experienced lawyers. You can also fill out our legal consultation request form and through that our consultants will check all your conditions and contact you and tell you the necessary solutions.