Central African Republic SubsidiaryReading Time: 3 minutes
Companies planning on working in the Central African Republic need to set up a variety of processes, including payroll, hiring, benefits, and compensation. However, the most important infrastructure for all of those elements is a subsidiary. You must have a registered entity in the Central African Republic or a contract with a global PEO to work legally in the country.
Globalization Partners is a global PEO that offers an easier route to expanding to countries around the globe. When you choose Central African Republic subsidiary outsourcing with our team, you can use our existing and compliant infrastructure to hire employees, run payroll, and give out benefits — all within a day or two.
How to Set up a Central African Republic Subsidiary
If you’re ready to set up a Central African Republic subsidiary, you need to examine two important factors — your location and your business activities. For example, different states in the US can have regulations that differ from national or federal guidelines. The same applies to the Central African Republic, where different regions or cities could have their own incorporation laws. If you’re not familiar with the different Central African Republic subsidiary laws by region, you should work with an expert who can help you find the best place.
The next thing you need to consider is your type of entity. Your incorporation options include a limited liability company (LLC), public limited company, branch, or representative office. The structures differ in the types of activities they allow and the laws that apply. For example, LLCs have the most operating freedom, but they face many laws related to financial statements and annual filing. Branches and representative offices are more restrictive, but they have fewer laws.
Many companies decide to incorporate as an LLC. If you do the same, you’ll need to:
- Deposit your legally required initial capital in a bank account or at the notary
- Have two bank directors sign deposit evidence
- File certain documents for notarization, including the company’s contract, criminal record certificate, sworn declaration, and director’s residence certificate
- Register the company at the commercial registry
- Complete a sworn declaration at the Guichet Unique de formalités des Entreprises (GUFE)
- Send a copy of the criminal record to the National Court
- Obtain a tax identification number
- Register for social security
- Advertise the company’s formation in a national news daily
- Register with the Chamber of Commerce
- Notify the proper authorities when you hire employees and file a declaration at the Regional Directorate of Employment
- Obtain a business license at the Municipality for XAF
Central African Republic Subsidiary Laws
Following the correct Central African Republic subsidiary laws for your entity will help you stay compliant and avoid fines and fees. LLCs require at least one director and one shareholder who can be an individual or a legal entity. Both can live anywhere and be of any nationality. The minimum paid-up share capital to complete the incorporation process is $1,800, but you’ll need to pay other fees throughout the steps listed above.
If your company’s share capital is above $18,000, your annual turnover exceeds $45,000, or you employ more than 50 employees, you’ll need to appoint a statutory auditor. Doing so will ensure that your financial statements and tax filings are correct throughout the year.
Benefits of the Central African Republic Subsidiary Setup Process
The Central African Republic subsidiary setup process will bring your company many benefits as you start to work. One of the most important benefits of the LLC is that it can help protect your assets. Your parent company won’t need to worry about fines or litigation from the subsidiary, and you can choose the best way to operate in the Central African Republic.
However, these benefits aren’t enough for companies who need to work quickly, as you won’t begin working in the country for weeks, months, or a year. Central African Republic subsidiary outsourcing with Globalization Partners will ensure that you can work fast with maximum benefits. If you use our infrastructure, we’ll take on all responsibility of compliance as the Employer of Record, leaving you time to focus on growing your company.
What Will You Need for the Process?
Preparation and learning how to set up a Central African Republic subsidiary can ensure success. We recommend making sure you have:
- An expert in Central African Republic subsidiary laws
- Time to handle all incorporation tasks
- Money for your initial share capital and all other processes
Work With Globalization Partners Today
Globalization Partners will help you work abroad quickly with limited frustration. Contact us today for more information about Central African Republic subsidiary outsourcing.