How To Start A Business In Senegal

Since her independence in 1960, Senegal's economy has shifted from mainly Agricultural production to Services. The economic sector of Senegal is divided into three, namely. The primary sector, which is Agriculture, the secondary and the tertiary sector. In GDP, the tertiary sector holds 64.2% of economic activities, while the Secondary and Primary sector constitutes 20.8% and 14.9% respectively.

The Republic of Senegal which owes its name to the River Senegal that borders it to the east and north is a West African country. Its population is estimated at 13 million and it covers a land mass of about 197,000 sq. meters. Dakar is the capital city of Senegal and it is a Francophone country. Senegal is a member of the Economic Community of West African States (ECOWAS) and also the African Union (AU).

Senegal's major industries are Food processing, Textiles, Refining, Mining and tourism. The country does major exports of Groundnuts, Fish, Fabrics and Chemicals. Its economy is gradually on the rise, though it depends on foreign investment, which makes it a very good business decision if you have decided to start a business in Senegal. The estimated growth rate of the country's GDP is 4% as at 2013, it was 3.5% in 2012 and 2.6% in 2011. The GDP per capita is estimated at $2,100 as at 2013.

Senegal is involved in the production and exportation of Agricultural products like, Sorghum, Millet, Tomatoes, Fish, Cattle, Poultry and so on. This same agricultural sector, employs about 77% of its Labor Force.

With all of the above in mind, the following steps will help you on how to start a business in Senegal.

Incorporation

The First thing you are required to do when establishing a Limited liability company (LLC) in Senegal is to Deposit the Start-up capital with an authorized bank. You can do this directly or through a public notary.

The next step is to do a check of the business name. This is in line with the provisions of the Organization for the Harmonization of Business Law in Africa (OHADA), of which Senegal is a member. It requires that any business or company must have a unique name before it can be registered in the trade register.

As the third step, you need the service of a Public notary in order to Notarize the company bylaws and to deposit the start-up capital for the business (if you have not done that already). The notarial act must establish the statutes and issue the declaration of conformity (declaration de regularite et de conformite) and also, register and declare the existence of the company with Tax authorities.

Senegal has one of the fastest processes in the incorporation of a business in Africa. It takes just five procedures and about 10 days to register a Limited liability company in Senegal. It starts by registering your company at the One Stop Shop, in order to obtain the following:

• Tax registration


• Commercial registration at Registre du Commerce et du Credit Mobilier- RCCM department


• Registration for Company Identification Number at "Numero d'Identification National des Entreprises et des Associations (NINEA)"


• Labor and Social Security registration


• Import and Export card from Investment Promotion Agency "APIX" (for international trade)

If the business you decide to do in Senegal bothers on Agriculture or any other business that requires the use of land and space, then you also need:

Access To Land

Because of the bureaucracy involved in the land acquisition system, it is usually easier to go for lease of a land, which is also a complicated and time consuming procedure. This is because, government approval is usually required for the lease of Public land and it takes time to go through all of the legal processes.

If your company is involved in industrial activities, you can secure land under lease for industrial use from the Development and Promotion of Industrial Sites (APROSI) or the Industrial Free Zone of Dakar (ZFID).

Land are not sold for Agricultural purposes, but they are allocated by the rural council of the locality on occupation authorization, upon payment of an amount to be set by the council, giving you the right to exploit the land as a tenant.

Recruitment of Employees

You have to declare to the Labor Inspectorate and the Labor Department within two days of recruiting workers. Also, the hiring must be done in line with the provisions of the Women and Children employment rules.

There are three types of employment contracts you can enter into with your employees. They include, Fixed-term contracts, Flexibility of employment contracts and Long-term contracts.

As an employer of labor in Senegal, you have the obligation of registering your workers with the Retirement Pension Fund (IPRES). You also need to ensure the health and safety of your workers, as well as respect for their dignity and privacy.