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Subsidiary Incorporation in West Africa
How to Set Up a Subsidiary in Africa?
A foreign corporation has two choices for initiating operations in West Africa. You can either form a branch or a subsidiary for your limited liability company.
In order to establish a subsidiary in West Africa, investors must exercise caution, as numerous rules and regulations must be followed, each having distinct effects. Having legal expertise is advised while creating a subsidiary. Kafui & Partners is a leading firm for subsidiary registration. We can advise you on the optimal choice and assist you with any compliance challenges.
Our Company Incorporation Solutions
We help in the registration of businesses in diverse ways of need. We provide company incorporation services in the following ways:
Setting up a branch and or registering a subsidiary
Requirements for branch registration in Africa
Typically, the registration of a private limited liability company corporation in Africa can be completed in a couple of days.
In our experience, one to two weeks is enough for the full process, which includes the gathering of relevant information and documents. We emphasize the possibility of an expedited procedure.
FAQ FOR SUBSIDIARY INCORPORATION IN AFRICA
To execute professional contracts, mainly services provision from abroad and for tax and social purposes, international firms are sometimes obliged to open at least a branch in the country in which the services are rendered. This implies that you will have a physical presence in the country. In this case, you will be obliged to present relevant documents to government authorities for the branch's establishment.
What is the difference between a branch company and a subsidiary company?
The primary distinction between a branch and a subsidiary is that forming a branch is establishing a physical presence in Africa to conduct the parent company's operations. The holding company is liable for the activities of a branch. A subsidiary, on the other hand, requires the registration of a separate legal entity that is liable for its own actions in the jurisdiction of incorporation.
In choosing between a branch and a subsidiary, the financial component is of paramount importance. A branch, for instance, may be required to submit the financial statements of its overseas parent company to the Companies Registry, whereas a subsidiary is simply required to disclose its own earnings reports.
At Kafui & Partners, we assist you in choosing the best option. Your selection will depend on the foreign parent company's stance on financial capital investment. A subsidiary corporation may be more expensive to run than a branch, particularly when tax issues are considered.
Finally, a branch has a maximum of two years of life renewable once and exceptionally extendable. After this maximum duration, the branch must be converted into a subsidiary or brought to a new company. Otherwise, radiation can be made by the commercial court.
The question of branch formation versus subsidiary incorporation can be answered through a 30-minute consultation with an expert. Book a call with us now.