SENEGAL
Senegal, Officially the Republic of Senegal is a unitary presidential Republic country in West Africa Bordered by the Gambia and other countries. It covers an area of 197,000 Km² with the population of around 16 Million. Senegal is a decentralized civil law country with three branches of government.
The constitution is the supreme law of the country of a liberal democratic republic. The Republic of Senegal is a Member state to ACP, Economic Community of West African States (ECOWAS), AU and UN.
To get a clear picture of the Legal aspect of various commercial related activities, this page provides a synopsis of the same in the areas of:
Incorporation
Immagration
Tax Regime
Intellectual Property
Employment
Incorporation and Business Registration
The incorporation of Companies in Senegal is governed by the Uniform Act on the Law of commercial companies and Economic interest grouping of 2014. The law allow establishment of Limited Liability Company, Public Limited Company and Joint-Stock Company, to open a representative office allowing investor to establish himself and Opening branch of a company.
The Limited Liability Company or (SARL) can be established by the minimum number of one natural or legal person and there is no requirement as to the minimum share capital for its creation. Management of LLC is done by one or more legal or natural person and it is not mandatory for it to appoint auditor until conditions set by the law are met.
Subsequently, A public Limited Company (PLC) can also be established and held by a single shareholder. Upon establishment the owner(s) are obliged to choose between two modes of operation through which the company will operate, that is;
(i) A Public Limited Company with a board of directors or
(ii) or A public company with Managing Director.
You May wish to visit https://www.legal500.com/doing-business-in/senegal/
Registration of Companies in Senegal is done with the Registry of Commerce and Personal Property (RCCM) through the one-stop-shop. The process can take approximately six days provided all required documents have been submitted.
Immigration and Residency
Senegalese authorities’ issues various travel documents which allows and individual of foreign nation to enter, work and or reside in the country. First and foremost, Senegal issues a variety of visas, issuance of a certain type of visa depends on the purpose of entry and the period within which a foreign national is proposing to stay in the country.
These include business VISA, Work VISA, tourist VISA
The website https://www.aeroport-dakar.com/visa provide a list of countries that are visa exempt, meaning that, the nationals of the listed countries do not need a visa to enter Senegal
The source also points out that nationals of all other countries (who are not visa exempt) can apply for their visa for the purpose of visiting Senegal at the embassies of Senegal in their country of residency or through online portal (e-Visa). VISA exempt countries Nationals can stay in Senegal for up to 90 days.
In addition, a citizen of the ECOWAS member states enjoys free movement within all member states thus they do not require VISA for entry purpose.
Upon being allowed to stay in the country by being issued a VISA (for non-exempt countries), A foreign national wishing to work or establish his place of residence in Senegal is required to apply for Work and residence permit
The work permits issued in Senegal are of two types
i. Local-hire Work Permit, and
ii. Assignment work permit.
Issuance of either of the two depends on various factors to be considered by the issuing authority, from qualification of the applicant, up to the duration and nature of the job he will be employed or engaged in.
In Senegal, Work permits are generally issued for an initial duration of two years and are subject to renewal. Apart from the work Permit, a foreign national will be issued a foreign identification document as a proof that they are authorized to live and work in Senegal.
Tax Regime
Senegalese Government imposes tax at three levels i.e. Individual income tax, corporate Tax and other taxes which cover various aspects. At the individual level Senegalese residents are taxed on their global income while Non- Senegalese residents are taxed on their income generated within Senegal. The personal Income tax is correspondence progressive duty.
The rates are prescribed in the figure below
| Source | Rate in
% (Residents) |
Rate in
% (Non-Residents) |
| Employment (PAYE) | 0% to 40% Depending on the individuals income as per Senegal Tax rate Table) | 0% to 40% Depending on the individuals income as per Senegal Tax rate Table |
| Dividend | 10% | 10% |
| Interest | 8%(on deposits or guaranteed interest on accounts with banks), 13%(on bond interest),16% | 8%(on deposits or guaranteed interest on accounts with banks), 13%(on bond interest),16% |
| Royalties | 20% | 20% |
| Rent | 5% WHT (with some exceptions) | |
| Remuneration for service rendered | 5% | 20% WHT |
Corporate Tax
Corporate entities incorporated in Senegal are taxed at their global income at the rate of 30% and foreign incorporated (Branches of foreign) Companies are taxed through the existence of a permanent establishment in the country.
Capital Gain Tax
Capital gains are considered business income and taxed at the ordinary corporate rate of 30%. Sale of stocks by non-resident are also subject to a 30% rate tax.
Other Taxes
Stamp and registration fees ranges from 1% to 5%. Payroll tax to the employers 3%.
Tax Treaties
Senegal has entered into both Tax relief agreements and Double Taxation treaties as such. There is a double taxation treaty between Senegal and United Kingdom, Tunisia, Spain, Qatar, Portugal, Norway, Morocco, Mauritania, Lebanon, Italy, France, Canada and Belgium.
You may wish to visit https://www.douanes.sn/en and https://taxsummaries.pwc.com/senegal/c for more details.
Intellectual Property
With regard to intellectual property, Senegal is a member to World Intellectual Property organization (WIPO), TRIPS Agreements as well as the African Intellectual Property Organization (OAPI). Registration of Intellectual Property in Senegal is under the purview of the Senegalese Agency for industrial Property and Technological Innovation (ASPIT) and the Ministry of Culture.
Registration of copyright is not mandatory in Senegal. However, owners/authors are advised to register in order to secure proof of their ownership. On the other hand, validity for security of IP rights is as follows;
i. Copyrights is protected for a lifetime and 70 years after the death of the author,
ii. Patents are protected for 20 years.
iii. Trademark is protected for the initial 10 years and is renewable for consecutive periods of 10 years.
iv. Industrial designs are protected for the initial 5 years and are renewable for two further consecutive 5 years periods.
Labour and Employment
Working in Senegal is regulated by Senegalese labour and employment laws. However, For Foreign national to undertake an employment in Senegal he must be subjected to immigration procedures including VISA (for non- exempt nationals, Work and Residency permit for them to work in Senegal.
FARus 