The interest of foreign entrepreneurs in the African continent is growing every year. Registering a company in Africa and opening an account with an African bank is a particularly attractive offer for those, who want to try their hand in such areas as: the extraction of natural resources, processing and construction industries, a transport, a medicine, a tourism, IT and telecommunications, financial services.
In addition, Africa is notable for low barriers to entry, a fast-growing economy, increased loyalty to many Ukrainian brands and a high demand for foreign products. If you are looking for new horizons for expanding your own business or looking for promising jurisdiction to launch a startup, then you should definitely bet on this region and try to open a company in Africa.
Key benefits of the region
The African continent is the 2nd by size and population in the world. It has 8 dependent territories and 54 sovereign states, 2 of which (Mauritius, Rwanda) are in the top of 30 countries in terms of ease of doing business, according to the rating of Doing Business financial magazine.
Our experts have prepared for you a detailed overview of most favorable countries on the African continent for conducting international business. The main criteria for evaluating our chosen jurisdictions were:
- A convenient geographical position;
- A stable political environment;
- Significant mineral reserves (oil, gas, precious metals and stones, ores);
- The availability of free trade zones (PPE, SEZ) with favorable conditions for entrepreneurship;
- The loyal cost of hiring an affordable and skilled workforce;
- The most comfortable investment climate (profitable government programs);
- A flexible tax system;
- A developed banking and financial system;
- Relatively simple and fast incorporation conditions.
Top 7 best African jurisdictions
If you intend to register a company in Africa remotely, but cannot decide on the most suitable country due to the lack of relevant and reliable information about the region’s business environment, we recommend you to familiarize yourself with the list of the best African jurisdictions prepared by our experts in 2020.
Those, who are going to set up a company in Tunisia and to open an account with a bank in Tunisia will find most attractive conditions for doing business, especially when opening a Tunisian export company, a Free Zone company (RDZ), an agricultural enterprise. The tax rate instead of the standard 25% will be only 10% (the most loyal among African countries).
In addition, key advantages of this jurisdiction are: the presence of considerable reserves of natural resources (oil, iron ore, phosphate rock, lead), a well-established transport infrastructure, the participation in the GAFTA Arab free trade zone, more than 35 DTA agreements, an established trade with the USA, Germany, France, Spain and many other countries.
The most priority business areas in 2020, which are worth paying attention to those, who wish to establish a Tunisian commercial enterprise, are the chemical industry, a mechanical engineering, the food industry (seafood, fruits), printing and pharmaceuticals.
Another taxable solution is to register a company in Mauritius and to open an account for companies in Mauritius. The basic income tax rate in this jurisdiction is 15%, and in the case of the opening a company, specializing in export operations, the tax rate will be only 3%.
Also, main advantages of doing business in this country should include: 20th place in the ranking of Doing Business in terms of ease of doing business among countries of the world, the presence of a well-developed stock market, more than 40 countries with which DTA agreements are signed, the absence of currency control, the availability of a free export zone. Those, who wish to open a company in Mauritius, should give preference to such business areas as: services (finance and insurance), a tourism, a light industry.
Establishing a company in Botswana, in particular, specializing in manufacturing or providing financial services (IFSC), will reduce the corporate tax rate of 22% to 15%.
Main advantages of this jurisdiction are: preferential holidays (up to 10 years) and the absence of a tax on dividends, significant mineral reserves (nickel, copper, malachite, agate, diamonds), more than 12 DTA contracts, developed infrastructure and telecommunications system.
If you want to set up a company in Botswana remotely and to register a corporate account with a bank in Botswana, we recommend you to opt for these business areas: a tourism, a construction, light and mining industries, banking.
Entrepreneurs, who decide to register a company in Egypt, expect a fairly loyal basic income tax rate (22.5%).
Key advantages of jurisdiction: 1st place in the list of African countries with the best investment climate (for 2019), large oil fields, a participation in the GAFTA free economic zone, simple terms of employment, more than 10 DTA agreements.
If you plan to open a company in Egypt remotely and to set up an account with an Egyptian bank, then in 2020 you should choose these business areas: a manufacturing, food and chemical industries, a tourism, a metallurgy.
Opening an Algerian company will become profitable due to a flexible taxation (a base rate 26%). Manufacturing enterprises are taxed at a rate of 19%, construction and travel companies at a rate of 23%.
Also, main advantages of opening a medium or large business in Algerian will be: a participation in the Pan-Arab Free Economic Zone (PAFTA), a high GDP, 15th place in the world in the number of oil fields (large reserves of gas and iron ore), convenient search conditions and hiring workers.
Those, who are going to register a company in Algeria and to open a corporate account with a bank in Algeria, are advised to choose one of these business areas: a tourism, a lumber production, an energy, electronics, a mining.
Republic of South Africa
South Africa is one of the most economically developed countries in the African region. Entrepreneurs, planning to open a company in South Africa, will be taxed at a progressive rate, depending on the amount of income - from 0% to 28%.
Main advantages will be: the presence of rich deposits (coal, minerals, gold, platinum, diamonds), 2nd place in the rating of African countries with the best investment climate (for 2019), more than 30 DTA agreements, admissibility use of nominee services, South Africa's participation in the G20.
Those, who decide to establish a commercial firm in South Africa remotely and to open an account with a bank in South Africa, should give a preference to such industries as: mining and processing industries, IT, a tourism, a construction and a medicine.
Morocco is in the top 60 countries in terms of ease of doing business, and is, also, the world's largest exporter of phosphate rock. Those, who wish to register a company in Morocco, will be required to pay an income tax at a progressive rate, that depends on the amount of income - from 10% to 31% (37% for insurance companies and credit organizations).
Main advantages in this country are: a high GDP, a participation in the GAFTA free economic zone, more than 7 DTA agreements, a developed transport infrastructure, established trade relations with more than 10 leading countries in Europe and Asia (USA, China, Germany).
If you are interested in setting up an enterprise in Morocco and opening an account with a Moroccan bank, we advise you to focus on one of these business areas: an oil production and refining, electronics, the automotive, textile and chemical industries, a tourism.
YB Case offers you the opportunity to easily and quickly open an African company, to apply for an account with a bank of Africa and, also, the assistance in drawing up related documentation. You can obtain more detailed information by registering for a consultation with our specialists at contacts, listed on the site.