Sierra LeoneWe assist global clients looking to do business in Sierra Leone with the A to Z of business setup without the need for the client to travel to Sierra Leone . Some of our services include:
Regulatory licenses across all sectors
Provision of nominee directors and shareholders
Recruitment and employee hiring
Virtual/Physical Office space solutions
Employment and residency visas
The most common corporate structures preferred by foreign investors setting up in Sierra Leone include i) the limited liability company (LLC/LTD) and ii) Special Economic Zone Company(SEZ) iii) Representative Company. See detailed comparison below:
Advantages and disadvantages of Sierra Leone business setup:
- Political and economic stability and has significant potential for investment in different sectors of interest.
- Sierra Leone has Bilateral trade agreements between Sierra Leone and other countries and enjoy duty free access to larger markets such as the United States under the African Growth and Opportunity Act (AGOA) treaty and the European Union through the Everything But Arms (EBA) initiative.
- Government incentives. The incentives offered to foreign entrepreneurs include i) a 3year exemption from import duty for importation of plant, equipment and machinery ii) 125% tax deduction on expenses on training and research and development and export promotion activities iii) 3year tax exemption for foreign employees where bilateral agreements apply.
- Sierra Leone has favorable tropical climate. fertile soil that is good for agriculture, an extensive continental shelf with numerous varieties of fishery resources, a natural environment offering tourism prospects, and vast mineral resources.
- The government established the National Investment Board (NIB) in 2022 to coordinate, facilitate, and promote business investment in Sierra Leone. The Board aims to simplify the bureaucratic processes and regulations for businesses, build trust and credibility in the registration process, and enhance a predictable and transparent investment climate that drives responsible investment.
- Sierra Leone provides access to a market of more than 50 million people via its membership in the Mano River Union with Côte d’Ivoire, Guinea, and Liberia, and a market of over 400 million people through its membership to the Economic Community of West African States (ECOWAS).
- Little to no Minimum Paid-Up Capital: There is no minimum capital requirement for Sierra Leone companies, allowing businesses to be formed with low or no initial investment, providing flexibility in capitalization.
- No Residency Requirement for Directors and Shareholders: There are no requirements for directors, shareholders, or officers to be residents of Sierra Leone, allowing for complete foreign ownership and control.
- Ease of Incorporation: The process of incorporating a company in Sierra Leone has been simplified in its requirements, hence shortening the registration process with companies often incorporated within 2-4 weeks, making it efficient for business owners.
- Lack of skilled labor. The Republic of Sierra Leone lacks enough skilled labor force critical for smooth runnig of businesses and economic advancement.
- Clearance of goods at ports can be slow and highly bureaucratic, and there are other limitations including a lack of intellectual property protections, restrictions on land access, and local content requirements;
- Difficult macroeconomic conditions. Inflation has continued to rise due to increasing commodity prices, debt-fueled government spending, loose macroeconomic policies, and sharp currency depreciation;
- Though infrastructure projects are ongoing poor quality and limited infrastructure also pose significant challenges to investment, domestic travel, inland transport, and routine operations;
- Land accessibility to foreigners is a challenge especially in business involving land purchase which is largely dependent upon the traditional leader’s influence and authority;
- There are some specific restrictions on some sectors that cannot be fully owned by foreigners.ie mining sector.
- Corruption is also widespread in Sierra Leone both private and public sectors.
Important links:
- International trade administration
Company incorporation steps in Sierra Leone
- Name Reservation: Girimba Consulting reserves a unique company name through the Corporate Affairs Commission;
- Documents Preparation: Our Team prepares the incorporation documents and emails our Client for signatures, notarization and apostillation;
- Certificate of Incorporation: Our Team submits an application for company registration and obtain a certificate of incorporation;
- Personal Identification Number (PIN): If the director is a foreign national, our team shall facilitate and assist with application for a PIN with the National Revenue Authority;
- Company Tax Identification Number: Our Tax Agent also submits an application to the Division of Revenue and Taxation for the Company Tax Identification Number (TIN).
- Goods and Services Tax (GST) or the Value Added Tax (VAT) is levied in Sierra Leone at a standard rate of 15% on the sale of goods and services. All trading companies must register for GST and file monthly returns. Our dedicated team will also assist in registering for the GST
Other Registrations: Our dedicated team shall assist the Client obtain Statutory registrations like Social Security Scheme and sector specific business licenses, permits and National Social Security and Insurance Trust (NASSIT);
- Bank Account Opening: Girimba Consulting also assists our Client to open a local corporate bank account with a top tier bank in Sierra Leone.
Girimba Consulting conducts business with openness, transperancy and honesty.We respect and uphold our Clients’ confidentiality, we offer quality service at affordable rates. Contact us for professional solutions.
Clarence S. Carlos
Regional Cordinator
Clarence is our regional cordinator and head of business setup secretariat.