Under this section, investors may find a summary of formalities on how to set up a company and obtain eligibility to operate under the Investment Code or the Free Export Company scheme. These statutes offer real advantages to the eligible companies.

Investment Code

Conditions of eligibility 

A.        Parameters of the Investment Code :

- Agriculture, livestock, fisheries, activities related to manufacturing, storage, packaging of animal, vegetable or fisheries products ;

-  Manufacturing production or transformation activities ;

-  Mineral substance extraction or processing activities ;

-  Tourism and related activities ;

-   Cultural industry run by an SME (books, records, documentation and audio-visual production centre) ;

-   Services provided by an SME in the fields of Health, Education, Industrial equipment assembly and maintenance ;

-    Port infrastructure works;

-    Railway development and management.

B.        Conditions specific to Law N°87-25 of 18 August 1987 :

-    Investment of at least 5 million CFAF in one of the aforementioned sectors;

-    Funding investments through equity, to the tune of at least 20% for SME (investments not less than 400 million) and 30% for major companies (investments to the tune of 400 million and above).

Documents required to apply for eligibility to operate under the Investment Code

A.     For all eligible sectors :

-         An application for eligibility addressed to the Minister of Finance and the Economy c/o Director General of the Investment Promotion and Major Projects Agency (APIX), specifying the nature of the activity and place chosen to establish the business.

-         A technical data sheet (the format of which is available at the reception service/ APIX Front Office) in ten (10) copies, the list of equipment and materials should be attached to this form ;

-         A certificate of registration on the companies’ register or an authenticated copy of the memorandum and articles of association or the minutes of the company’s constituent general assembly or the legalised copy of an identity card, in the case of a sole-proprietor company ;

 

N.B.

-          The suspension of duties and taxes are granted for the start-up of projects proposed for eligibility, on the basis of pro forma invoices and  bills of lading.

-          Requests for additive lists should include the destination of the targeted equipment and material as well as their connection with the approved programme ; they should be accompanied by a letter of approval and the aforementioned list.

 

 

B.    For the agricultural sector

-         The proof of occupation of the assigned land.

 

C.    For mining extraction

-         The exploitation permit stipulated in the Mining Code.

 

D.    For tourism

-          Architectural plans for tourist infrastructure realisation works.

-          In the absence of a headquarters, a contract showing attachment to an existing tourist reception structure for recreational activities.

 

E.     For small and medium-sized enterprises operating in the health and education sectors

-          Ministerial authorisation is required.

 

 

Free Export Company

 

The parameters of the scheme comprise :  

-          Agriculture in the wide sense, including horticulture and forestry, pastoral animal breeding, fisheries and aquaculture ; and

-          Industry (processing raw materials, assembly of semifinished products).

 

Documents required to apply for eligibility to operate under the Free Export Company status 

A.     For all companies

 

-         An application for eligibility addressed to the Minister of Finance and the Economy c/o Director General of the Investment Promotion and Major Projects Agency (APIX), including the nature of the activity and the place chosen to establish the business ;

-         A copy of an identity card, for sole-proprietor companies ;

-         An authenticated copy of the memorandum and articles of association, for moral persons or the minutes of the constituent general assembly ;

-         Projected trading accounts, for the next  two (2) years of operation, with  details of the accounts on the costs of raw materials and semifinished products to be imported ;

-         A typed technical data sheet in ten (10) copies, showing the targeted markets, the turnover distribution based on local sales and exports, as well as the investment details if the latter are required for the realisation of export objectives.

 

 

B.    For existing companies

 

-         Financial statements of the preceding financial or fiscal year;

-         An export declaration statement of the past two years, stating the exported values and weights. The said declaration should be authenticated by the Customs Services;

-         A value added tax (VAT) statement of the past two years, authenticated by the Income Tax Department;

-         The manufacturing or production certificate (for agricultural firms) of each exported product.

 

 

C.    Fuel appropriation

 

-         Form showing the quantities of fuel and specifying the equipment and vehicles using it and their specific consumption (per unit of time for equipment and per 100 km for vehicles) ;

-         Copies of documents relative to the technical characteristics, namely the specific consumption ;

For vehicles purchased within the framework of the authorisation, indicate the mileage showing on the milometer, and specify the date on which it was noted.

 

 

Cost for setting up a company

 

Senegalese corporate law provides for various social forms of commercial companies :

 

§         General partnership company ;

§         Limited liability company;

§         Public Company/Limited company;

§         Shareholding company;

§         Company owned by a sole proprietor ;

§         Limited partnership company ;

§         Economic interest group.

 

However, the most common forms are the Limited Companies (S.A.) and Limited Liability Companies (SARL) . The setting up costs of these companies are as follows :

 

 

Limited Liability Company (SARL )

Limited Company (SA)

Equity Capital

1,000,000

10,000,000

Fiscal costs

47,420

195,240

Administrative costs

75,900

85,900

Notary fees

92,100

286,200

TOTAL

215,420

567,340

 

 In CFA francs

 

Labour Cost

(In Euro, 1 Euro = 655. 957  CFA F)

 

Labour relations are guided by the general conditions of the regulations  in force. These are the Labour and Social Security Code, the national inter-professional collective labour agreement as well as collective labour agreements for each sector of activity for the most favourable provisions.

 

The guaranteed minimum wage is 0.31 Euro per hour. For most of these collective labour agreements, the monthly salary for Top Category workers is around 72.82 Euro per 173 working hours per month. 

 

Salary/wage scale by category 

 

 

 

 

Minimum monthly salary

 

Maximum

Monthly salary

Maids and servants

 

56,80

 

73,84

Drivers

 

72,04

 

82,56 

Labourers

 

58,09

 

124,86 

 

Employees

63,27

127,79 

Management, supervisors and  technicians in the same category

 

 

102,37

 

 

144,93

(in Euro ; 1 Euro = 655. 957  F CFA )

 

 

Social benefit contributions/ Welfare costs Charges sociales sur salaires

 

Employers are subjected to payroll charges, related to subscriptions to social institutions : Social Security (CSS) and Pensions Fund (IPRES). The schedule/rate  is differentiated for top management and other workers

 

 

 Table of contributions and income tax

 

 

 

Rate

 

Basic monthly ceiling

(en euro)

Employer

Employee

Total

Pensions scheme (IPRES)

 

 

Standard scheme

 

305.34

 

8.4%

 

5.6%

 

14%

Management scheme

 

961

3.6%

2.4%

6%

 

Social Security Fund 

 

 

 

 

 

 

Industrial Accident

91.60

 

 

 

 

1% or 3% or 5% (depending on the organisa

tion of the company)

Exempted

 

 

 

 

Family Allowances

91.60

7%

Exempted

 

 

Industrial accident Fund

 

 

91.60

 

3%

 

3%

 

6%

Deductions from salary

 

TRIMF

Gross salary

Exempted

Cf. Scale

 

IRPP

CFE

Gross salary

Exempted

 

Cf. Scale

 

Senegalese

Gross salary

3%

Exempted

 

Expatriate

Without deductions

6%

Exempted

 

 

 

 

Costs of factors of production

(In Euro, 1 Euro = 655. 957  CFAF)

 

1- ELECTRICITY

 

 

Fixed monthly premium in Euro/ /KW

Cost of energy  (Euro /kWh)

K1 peak hours (19h to 23h)

K2 (the rest of the time )

Moyenne tension

 

Short-term utilisation rate

 

 

0.90

 

 

0.17

 

 

0.11

Standard rate

3.80

 

0.10

 

0.08

 

Long term utilisation rate

 

0.90

0.08

0.06

 High tension

 

 9. 14

0.07

0.05

 Low tension

 

2.69

0.11

0.12

 

 

2- PETROLEUM PRODUCTS

 

 Euro / Inclusive of tax per ton, public price

 

Euro / Inclusive of tax per litre

 

Diesel                              399

Premium petrol                     0.68

Fuel 180                         250.33

Regular petrol                   0.74

Fuel 380                          233

Gasoil             (Diesel oil ?                       0.50

Mixed petrol (pirogue )                   0.50

kerosene                               0.36

 

 

 

 

 

 

 

3- WATER

 

A-Connections

 

Diameter (millimetres)

15

20

30

 

40

Connection

Costs in  

euro

50.30

+ 6.10 stamp

226.31

+ 6.10 stamp

603.51

+ 9.16 stamp

980.71

+ 18.32 stamp

 

 

B-Consumption

 

Types of operation

Categories of clients

M3 consumption phase per 2 month period

Price of water /

/m3 tax included

Cities with mains services

 

 

(business concerns in the urban zones)

 

Households,

 15 mm metres

from 0 to 20

 

0.30

 

From  21 to 100

 

1

 

Over 100

1.15

 

Households,

 20 mm metres and more

 

From 0 to 100

1

Over  100

1.15

Market gardening

From 0 to 3000

0.16

From 3001 to

20 000

0.22

Over 20 000

0.008

Households,

 15 mm metres

From 0 to 20

0.29

From 21 to 100

0.93

Over  100

1.06

Households,

 20 mm metres and more

 

From 0 to 100

0.93

Over 100

1.02

Cities without  mains services

Market gardening

From 0 to 3000

0.16

From 3001 to

20 000

0.22

Plus de 20 000

0.93

 

4- TELECOMMUNICATIONS

(in Euro, tax- free, add 18 % VAT)

Senegal has a high quality telecommunications network. 

 

 

 

Rate for mass marketing services

                                  

Services

 

Telephone and fax         

Telex

 

Installation

Connections 

37.09

52.51                

Security deposit

67.17                                  

151.14          

Fiscal stamp

6.10                                      

  6.10

Rental system charge (payable

bimonthly )

7.37                                         

9.54

Local Calls

Regular hours’ rate

0.09  / 2 minutes

 

 

Off-peak hours rate

0.09 / 4 minutes

Inter-city calls

Regular hours’ rate

0.09  / 30 seconds

 

 

 

Tariff Peak Period

0.09  / 1 minute

International calls to the African continent

 (1minute)

Off-peak hours rate

 

  0.49    / 1 minute 

 

 

 

Off-peak hours rate

0.25     / 1 minute

International calls to France and the rest of the world

(1minute)

Normal hours’ rate

0.61    / 1 minute         

 

Off-peak hours rate

0.38    / 1 minute

Tariff (in Euro, 1 Euro = 655.957 CFAF, tax-free, add 18 % VAT)

 

NB :  Normal hours : from  8 a.m. to 8 p.m., every working day

Off-peak hours:  from 8 p.m. to 8 a.m. , Monday to Friday, and the whole of  Saturday, Sunday and public holidays.

 

SONATEL offers multiple services for telephone and Internet connections. This company provides one of the best telecommunications infrastructure in Africa. It is thus possible to be connected permanently (through specialised links) or periodically (through links switched on by a telephone network or RNIS). SONATEL sells only access through specialised links. Other types of access are sold by various suppliers.

 

Rate of specialised links on SONATEL’s Internet  node :

 

Specialised links

           

Connection fee (Tax-free)

Monthly rental charge

64 megabytes

992

733

128 megabytes

992

1215

256 megabytes

992

1420

512 megabytes

1527

2336

1024 megabytes

 

1527

2931

2048 megabytes

1527

3847

Tariff (in Euro, 1 Euro = 655.957 CFAF, Tax-free, add 18 % VAT)

 

 

 

4-    SHIPMENT BY SEA (in Euro)

 

 

Cost of an average shipment by sea for a 20 feet container

 

From Dakar to :

Rate

French Port Atlantic

2068 to  2595

North Port Europe   

2068 to 3100 

Portugal, Belgium, Germany

2375 to 3370

 

United States  (New Jersey)

2375 to 3370

(in Euro, 1 Euro = 655.957 CFAF)

 

 

5-    PORT RATES (in Euro)

 

Occupation of spaces per m˛ and per annum

                                                                           

Type of space

Tariff

 

Warehouses for goods liable to customs duty

9.12

Adjacent Spaces  

3.5

Warehouses for duty-free products

11.5

Commercial platform for goods liable to customs duty

2.10

 

Commercial platform for duty-free goods

1.40

(in Euro, 1 Euro = 655.957 CFA F)                                     

 

 

Use of platforms :

Tariff

 

Franchise 

10 days

Charges

0.26 /m˛/day

Minimum collection

2.17 Euro

(in Euro, 1 Euro = 655.957 FCFA)                                      

6-    INDUSTRIAL LAND AND BULIDINGS (in Euro)

 

Cost of industrial building construction: From 145.03 to 183.20 /m˛

Rent at SODIDA, Euro/m˛/month :

Tariff

Warehouses  

1.52

Unbuilt plots of land 

0.04

(in Euro, 1 Euro = 655.957 CFAF)