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When choosing a jurisdiction for a new business, African countries are typically overlooked. Traditional recommendations from multiple experts are simply to choose any offshore option. If reputation is critical, they choose the USA, Canada, the UK, and the developed states of the EU, such as Germany, Italy, and France. For instances when legal tax optimization is a priority, it’s often recommended to consider the Asian Tigers, such as Singapore, Hong Kong, Taiwan, and South Korea.
At first glance, this equation has no space for the leading African states, such as the Seychelles, South Africa, Comoros (including Anjouan and Ndzuani), Egypt, Ivory Coast, or Zambia. It’s widely considered that the region is not suitable for doing business due to corruption, underdeveloped internal markets, population insolvency, logistical difficulties, a low reputational component, and numerous other subjective reasons. But is it so?
Advantages of Company Registration and Doing Business in Africa
People who think that this region is a dead end in terms of business might be the outer space aliens stuck in the age of civil wars, when poverty, bureaucracy, and corruption were blooming. Today, the situation is entirely different. Africa is rapidly developing, with the incomes of its population growing, mineral deposits being actively developed, and digital technologies increasingly penetrating everyday life. Therefore, there is no foundation to consider Africa a dead-end option for doing business.
Africa’s Advantages:
• High economic growth rate.
• Rapid development of digital technologies.
• Broad opportunities for investments.
• Active implementation of the e-commerce instruments.
• Lower wage expectations for local workers with a relatively high level of their qualifications.
• Good return on investment with a low level of risk.
• An open market for natural resources and government programs to support businesses operating in this area and investing in the development of specific countries.
• Government incentives for business.
• The active growth of the middle class and the overall solvency of citizens of African countries.
All these factors make an attractive region for doing business. The majority of typical drawbacks are now a thing of the past. That’s why, when you are choosing a jurisdiction for company registration, you can consider even more options. It means that there’s no point in ignoring the Seychelles, South Africa, Comoros (Anjouan), Egypt, Ivory Coast, or Zambia. These jurisdictions can be a good fit for you.
However, it’s essential to note that beneficial terms for business launches are time-limited. Sooner or later, the dynamics of economic growth in African countries will slow down, the domestic market will approach saturation, competition will emerge (which is currently minimal or virtually absent in many areas of activity), and large foreign investors will begin to enter the region actively. Therefore, you should not delay making decisions, especially if your business is related to high technology, minerals, or import-export operations.
Choosing a Country in Africa for Business Registration
The cases of two business persons, even if they work in the same scope of activity, rarely match so closely that we can offer them a typical, standard 2-in-1 solution (company registration and opening a corporate bank account). The service that suits one businessperson well can be average (neither the best nor the worst) for another, and completely unfavorable for a third.
Within a general scenario, when choosing an African jurisdiction for company registration, we recommend paying attention to six countries and territories, including the Seychelles, South Africa, the Comoros (Anjouan and Ndzuani), Egypt, the Ivory Coast, and Zambia. Each of them has its advantages and disadvantages, thus it’s essential to choose very responsibly.
Jurisdictions that we traditionally recommend for company registration usually stand out due to their broader range of corporate services, level of comfort, adapted legislation, and numerous opportunities for leisure. You may also find that a specific jurisdiction in Europe, the Asian mid-shore, or a classic offshore location in the Caribbean or Pacific regions is more suitable for your needs.
However, for cases where you want to launch a promising business with a limited amount of controlled risk, you should not ignore the option to register a company in Africa. The region is steadily becoming increasingly attractive to the corporate segment and investors. It offers access to all the advantages typically associated with emerging markets. The final task is to select a jurisdiction in which you will register a company and open a corporate banking account. If you would like to collaborate with us, please request a one-on-one consultation.
The Seychelles
It’s a classic offshore island jurisdiction. The core of the economy is tourism, which generates a quarter of GDP and 75% of income in foreign currency. The banking sector, service industry, fishing industry, and agriculture are well-developed. The main advantage of company registration in the Seychelles is the combination of various features, with minimal drawbacks.
The major business features of the Seychelles:
• Official languages are English, French, and Seychellois Creole.
• The currency is the Seychelles rupee (SCR), with the USD exchange rate of 14.16 SCR to 1 USD*.
• Currency control is almost non-existent.
• Rules for controlled foreign companies: None.
Key taxes in the Seychelles:
• Personal income tax (PIT) — 0% to 30%.
• Corporate Income Tax (CIT) — 25% or 33%.
• VAT — 7%, 10%, or 15%.
• Business tax (entrepreneurial activity) in the Seychelles is 0%, 15%, or 33%.
• Capital gains tax (CGT) is included in the corporate income tax (CIT).
• Withholding tax — 15% (dividends, interest, royalties).
• Double Taxation Agreements (DTA) — the number of countries that signed a treaty is 28.
• Tax Information Exchange Agreements (TIEA) — the number of countries that signed a treaty is 11.
The Republic of South Africa
That’s the country with the largest economy in Africa. Its GDP is the 33rd in the world, and they have large reserves of natural minerals. The most developed sectors of their economy are IT, energy, and banking. In recent years, the importance of tourism and specialized services for affluent individuals has increased. South Africa is the only country on the continent that is part of the informal group of economically developed countries, the G20.
The major business features of South Africa:
• Official languages: 12, including English.
• The currency is the South African Rand (ZAR), with the USD exchange rate of 18.55 ZAR to 1 USD*.
• Currency control: None.
• Rules for controlled foreign companies: None.
Key taxes in South Africa:
• Personal income tax (PIT) — 18% to 45%.
• Corporate Income Tax (CIT) — 27%, for small businesses — from 0% to 27% + 57,698 ZAR.
• VAT — 15,5% (starting 01.04.2026 — 16%).
• Capital gains tax (CGT) is 21,6% for corporations and 18% for persons.
• Withholding tax — 20% / 0% / 0% (residents), 20% / 15% / 15% (non-residents).
• Double Taxation Agreements (DTA) — the number of countries that signed a treaty is 75.
Comoro Islands, Anjouan
This region boasts a favorable business climate, lenient legal regulations, and a range of amenities for comfortable leisure. The government stimulates tourism infrastructure development. However, Anjouan is mainly known as an offshore gambling center. Obtaining a gambling license on the island is relatively easy. Considering the tightening of regulations in the EU, it’s becoming an increasingly essential advantage for the island.
The key business features of the Comoro Islands (Anjouan):
• Official languages: 3, including French.
• The currency is the Comorian franc (KMF), with an exchange rate of 1 USD to 432.5 KMF*.
• Currency control : None.
• Rules for controlled foreign companies: None.
Key taxes in South Africa:
• Personal income tax (PIT) — progressive scale from 0% to 30%, depending on the residency.
• Corporate Income Tax (CIT) — 0% (IBC, for foreign income), 30% — for companies working within the jurisdiction.
• VAT (is only applicable within the country) — standard rate of 10% with some rare exceptions.
• Capital gains tax — none.
• Withholding tax — none (for IBC companies).
• Double Taxation Agreements (DTA) — the number of countries that signed a treaty is 5.
Features of company registration in Anjouan
There is a standard service that allows you to have the opportunity to launch a new business and spend quality time. It’s a 2-in-1 package, which is a key advantage of Anjouan. This kind of benefit is not common in Africa. The probability of failure to complete the registration is very low. Our experts will handle all legal actions related to company registration, and the client’s participation in the process is minimized.
Advantages of the company registration in Anjouan:
• The nominal service is allowed.
• The remote registration is possible.
• There are no reporting requirements.
• Quick registration that takes no more than 2 weeks.
Egypt
It’s the cradle of ancient civilization. The country strives to adapt to the digital realm of the 21st century, stimulates foreign investment, and implements large-scale economic restructuring. Income mainly comes from tourism, agriculture, mineral mining, the textile industry, and oil refining.
The key business features of Egypt:
• Official languages: Arabic is the only official language, but English is widely spoken. There should be no problem with communication.
• The currency is the Egyptian pound (EGP), with the USD exchange rate of 50.79 EGP to 1 USD*.
• Currency control: None.
• Rules for controlled foreign companies: None.
Key taxes in Egypt:
• Personal income tax (PIT) consists of Payroll tax + National contribution + General income tax — progressive scale from 0% to 32%.
• Corporate Income Tax (CIT) — 25%.
• VAT — 14%, but in some cases, 5% or 0% may apply.
• Capital gains tax is included in the Corporate Income Tax (CIT).
• Withholding tax — 10% / 20% / 20% (for dividends, interest, and royalties).
• Double Taxation Agreements (DTA) — the number of countries that signed a treaty is 61.
Features of Company Registration in Egypt
The country has centuries-old traditions of doing business. The corporate rules that regulate the work of legal bodies are designed to support and stimulate companies, and the influence of bureaucracy is relatively small. The risk of social and political upheavals is minimal, making Egypt a suitable choice for launching a long-term business. The recommended spheres are tourism, agriculture, logistics, and light industry.
Advantages of business registration in Egypt:
• Quick procedure (available only with expert help; independent actions for incorporation in Egypt are not recommended).
• Developed corporate infrastructure.
• There are virtually no restrictions on the organizational and legal forms available for conducting business.
• Several free economic zones are available.
• There are no restrictions for foreigners to register companies, and 100% foreign ownership is allowed.
• No actual requirement for the size of the authorized capital.
Ivory Coast
Just a few years ago, the country was exclusively agriculture-oriented. Ivory Coast is one of the major producers of cocoa and coffee, and agriculture is still the foundation of its economy. Currently, the government invests in the tourism sector and develops the oil and gas industries. They started developing promising deposits of nickel, manganese, iron, bauxite, diamonds, and gold.
The key business features of Ivory Coast:
• Official language — French.
• The currency is the West African CFA franc (XOF), with the USD exchange rate of 577.16 XOF to 1 USD*.
• Currency control: None.
• Rules for controlled foreign companies: None.
Key taxes in Ivory Coast:
• Personal income tax (PIT) — from 0% to 32%.
• Corporate Income Tax (CIT) — normal rate is 25%.
• VAT — 18%, but reduced rates may apply.
• Capital gains tax is included in the Corporate Income Tax (CIT).
• Withholding tax for dividends, interest, and royalties — 15% / 18% / 0% (for residents) and 15% / 18% / 20% (for non-residents).
• Double Taxation Agreements (DTA) — the number of countries that signed a treaty is 14.
Features of company registration in Ivory Coast
The political uncertainty is the greatest obstacle for businesses in Africa. Ivory Coast is a rare exception. The government protects the rights of foreign businesspeople and does everything possible to make the country attractive to investors. The recommended scopes of activity include planting coffee and cocoa, as well as oil and gas production.
Advantages of business registration in Ivory Coast:
• Physical and legal bodies can be shareholders.
• The organizational legal form of the company is a classic French S.A. (Société Anonyme).
• There are two ways to manage the company – with the board of directors and with the executive manager.
• When forming the authorized capital, it is necessary to contribute at least 25% of the declared amount, with the remaining amount due within the next three years.
• Relatively quick company registration that takes no longer than 6 weeks.
Zambia
This country has a developing economy, and it’s rich with natural resources, including significant hydroelectric power. The key source of the budget income comes from the agricultural sector, and the industrial production is rapidly growing. Unlike the majority of other countries in the region, Zambia was able to demonstrate a positive balance of foreign trade. In recent years, the government has strived to attract foreign investments and implement structural economic changes.
The key business features of Zambia:
• Official language — 8, including English.
• The currency is the Zambian kwacha (ZMW), with the USD exchange rate of 27.81 ZMW to 1 USD*.
• Currency control: None.
• Rules for controlled foreign companies: None.
Key taxes in Zambia:
• Personal income tax (PIT) — progressive scale 0% to 37%.
• Corporate Income Tax (CIT) — 30%, but a reduced rate of 365 ZMW may apply for small businesses.
• VAT — 16% for the majority of goods and services.
• Capital gains tax: None.
• Withholding tax for dividends, interest, and royalties — 15% / 15% / 15% (for residents) and 20% / 20% / 20% (for non-residents).
• Double Taxation Agreements (DTA) — the number of countries that signed a treaty is 23.
Features of company registration in Zambia
Forced economic development that began in the 1990s is yielding results. The government does everything possible to attract international investments, so while doing business, you will not face any serious obstacles. The most promising spheres are mineral extraction and export, hydroelectric projects, and agricultural production, including corn, sunflower seeds, coffee, and tobacco.
Advantages of business registration in Zambia:
• Quick registration – no longer than 1 month.
• Plenty of choices for the organizational and legal types of business.
• Minimum requirements for authorized capital, depending on the company type.
• The registered company is entitled to participate in state contracts.
• There are no requirements for the nationality of the director and shareholders.
• Tax benefits may be available in certain cases.
Conclusion
Launching a commercial project in Africa sounded like a risky endeavor just a few years ago. One could do a relatively convenient business in the sphere of import and export, while the other options were usually not even considered. There were complications at every stage, from company registration and opening a banking account to obtaining licenses and complying with national regulator requirements. Bureaucracy and widespread corruption also hinder the region’s development. However, the situation began to improve over the last few years.
Therefore, if you are developing a business project and are not considering Africa as the market entry point, it’s the right time to reconsider. We will help you choose the jurisdiction and manage the legal burden. Our company can open a corporate banking account for your company and provide it with licenses and registration in the tax system. Additional information is available during the individual consultation.
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