If you’re establishing a business in the Democratic Republic of the Congo, a subsidiary is just one of your options. If you choose to establish your own entity, you’ll need to invest a significant amount of time and other resources — but once it’s set up, a subsidiary offers considerable advantages.
To establish a subsidiary in the Democratic Republic of the Congo, you’ll need to provide CDF 40,200 as a paid-in minimum capital deposit at an in-country bank. The type of corporation you’ll likely want to establish is the Société à Responsabilité Limité (SARL), but you can explore other options and determine which one will fit your needs best.
Keep in mind that the process takes around seven days on average. Make sure you have enough time to complete the process and get any additional documentation before you plan to begin your operations.
How to Set up a Democratic Republic of the Congo Subsidiary
Once you have the resources you need to begin the subsidiary setup process, you’ll need to follow these fundamental steps. Local labor laws will outline more details.
1. Verify Your Company Name
You’ll need to check that your chosen company name is unique through the Guichet Unique de la Création d’Entreprise. Verifying your name through the registry is free.
2. Register for Key Documentation
Your next step will be registering at the Guichet Unique de la Création d’Entreprise for your primary business documents. You’ll need to work with the Ministry of Labor, the National Institute for Social Security (INSS), the Commercial Registry, and the tax administration (Direction Générale des Impots).
Be sure to have these documents available:
- A passport or other legal identification
- A completed application form
- Your company’s Articles of Association
- A signed declaration stating that the manager of your company has never been arrested
- A statement of compliance with the laws, which should signed and dated by each company founder
- A letter addressed to the divisional clerk of the Commercial Court (Tribunal de Commerce)
3. Deposit Capital
Shareholders must open a bank account at an accredited microfinance institution or credit institution. You must furnish the deposit slip as proof of deposit.
4. Register With the Commercial Court
You’ll need to provide the following documents to register your company:
- Copies of your company statutes, which must be certified by the Financial Intelligence Unit (FIU)
- Two copies of a document listing your company managers and any associates authorized to act on your behalf
- Criminal records for each manager
- A property title
- A declaration of capital
5. Declare Company Establishment
Your final step is to declare the establishment of your company with the National Office of Employment, or the l’Office National de l’Emploi (ONEM). You must notify the agency of your intent to hire employees within 15 days of the start of business.
The Benefits of a Subsidiary
Some companies choose to establish a subsidiary abroad to give them a legal presence to hire and do business. As a separate entity, a subsidiary can reduce operational liability for your parent company. A subsidiary also gives your company the opportunity to develop its own unique culture abroad.
That said, subsidiary establishment isn’t feasible for every growing company. Globalization Partners offers a streamlined alternative that provides the benefits of a subsidiary without the time-consuming setup process. As your Employer of Record (EOR), we can hire your employees through our existing entity and take all the liability off your shoulders.
Do Business Seamlessly With Globalization Partners
Bypass the complexities of subsidiaries when you work with Globalization Partners. Contact us today to learn more and get a free proposal.