In many countries, you must establish a legal entity to begin operating in the region. When you choose Globalization Partners, we can provide the options you need for Burundi subsidiary outsourcing. Our established entity in-country allows you to bypass the subsidiary setup process, enabling faster operations overseas without any legal entanglements.
With wide-ranging resources, expertise in local compliance, and trusted services to handle your requirements, we can help you efficiently grow your company while offering peace of mind.
Requirements for the Subsidiary Setup Process
According to the country’s laws, your company’s shareholders and directors can be of any nationality. You can establish a limited liability company (LLC) with at least one director and two shareholders if one of them is corporate. It will take approximately six weeks to establish the entity.
You will also need share capital of at least 1,961 Burundian francs (BIF) to begin setting up your subsidiary.
How to Set Up a Subsidiary
You are responsible for following all regulations required by law to establish an international company.
1. Submit Required Documentation
You must provide necessary documents to the Burundi Investment Promotion Agency (API). The agency offers a one-stop shop for submissions and requires this information:
- Application form including your company name, address, starting capital, number of partners and their names, and each partners’ contributions
- Your company statutes
- Application form to register with the commercial court
- Application form for registration with the Burundi Revenue Authority to obtain a tax identification number (TIN)
- Photos of each company partner
- Proof of identity for each partner
Once you submit your application, you’ll receive a certificate of incorporation.
2. Complete Registration Through the API
After obtaining your TIN and certificate of incorporation, you’ll need to register with the National Social Security Institute. Your next step is to prepare the funds to cover the registration fee to the Burundi Commercial Bank. You can complete both of these steps through the API’s one-stop shop.
3. Acquire a Company Stamp
While it’s not a legal requirement, using a stamp to authenticate your company’s documents is standard practice. You can commission a local manufacturer to create a seal for your company for about BIF 20,000.
4. Provide Health Insurance
You are responsible for affiliating your company and employees with an official maternity and health insurance provider. To get health coverage, you can work with a private health insurance provider or a mutual health insurance company. As you begin operations, you’ll need proof of insurance coverage.
Burundi’s Subsidiary Laws
To fully comply with legal provisions, you are responsible for appointing an auditor and submitting audited financial documentation each year.
You may also have an option to register for one of the country’s special investment zones if you meet specific provisions. To qualify, you need to export all products and have a majority of Burundi nationals as your employees. As a free-zone company, you would be exempt from all import and export taxes.
Benefits of a Subsidiary
Having an established business entity in-country can provide several advantages for your international operations:
- Mitigated risk: A subsidiary or other entity can reduce your company’s liability at home and protect your reputation while doing business abroad.
- Company expansion: When you establish a subsidiary, you have a legal presence to hire top talent.
However, establishing a subsidiary takes significant time and resources. For instance, it could take your company up to a year to establish a compliant entity.
Globalization Partners offers another option, so you can bypass the lengthy subsidiary setup process. Our services as your Employer of Record (EOR) deliver all the benefits of a subsidiary while protecting your company from legal risk. When you work with us, we handle all your international business requirements for you so you can focus on growth.
Find Trusted Outsourcing Solutions From Globalization Partners
We’re here to help you achieve your business goals worldwide. Reach out to our representatives about how we can establish your company around the world.