Once you decide to open a new company location in Equatorial Guinea, you have to make several important decisions, such as where you’ll base your headquarters, what kind of business activities you want to perform, and what other companies you should form relationships with. But that’s on top of setting up your Equatorial Guinea subsidiary and handling your parent company’s activities back at home.
Globalization Partners knows how time-consuming it is to learn how to set up an Equatorial Guinea subsidiary and follow the country’s laws and regulations. We provide Equatorial Guinea subsidiary outsourcing services that can help you expand in only a day or two. You can use our subsidiary so that you don’t have to set up your own. With Globalization Partners acting as the Employer of Record, you can focus on running your company instead of handling issues of compliance.
How to Set Up an Equatorial Guinea Subsidiary
You can’t start setting up your Equatorial Guinea subsidiary until you know where you want to incorporate and what kind of subsidiary is best for you. Different regions or cities can operate like states in the US with their own Equatorial Guinea subsidiary laws and regulations. If you’re not familiar with the different areas, we recommend working with a third-party expert who can help you choose a friendly location for foreigners.
Next you need to pick an entity from Equatorial Guinea’s subsidiary options. You can incorporate as a limited liability company (LLC), public limited company, or branch. Each option has its own laws related to activities, freedoms, and more. If you plan to offer a wide range of products and activities, you should incorporate as an LLC, while companies that will provide a limited range of operations can choose a branch.
Setting up your Equatorial Guinea subsidiary as an LLC includes the following steps:
- Having a notary legalize company statutes
- Registering your public deed in the commercial registry
- Opening a local bank account and obtaining a bank certificate
- Obtaining a certificate of solvency
- Obtaining a certificate of fiscal solvency
- Applying for authorization of establishment by the Prime Minister
- Applying for tax registration
- Notifying the Minister of Labor when you start operations
- Registering for social security
- Applying for registration and obtaining a license with the Department of Small- and Medium-Size Companies at the Ministry of Commerce
- Applying for registration and obtaining a license with the Department of Commerce at the Ministry of Commerce
- Applying for registration and obtaining a license with the Minister of Development and Planning
- Paying required fees into the treasury’s bank account and obtaining a confirmation of the payment
- Obtaining a tax identification number (NIF)
- Obtaining a registration number with the Ministry of Labor
- Obtaining a social security number
Equatorial Guinea Subsidiary Laws
Equatorial Guinea’s subsidiary laws change depending on the entity you choose as well. For example, LLCs require shares, and shareholders are limited in liability by the amount of capital they contribute. All foreign-owned LLCs need to have at least 35% of shares and a third of director positions held by citizens of the country. LLCs also require an auditor to submit financial statements, and you need to turn in an audit every year. All accounting books should be in French and kept at your registered office to meet OHADA laws.
Benefits of Setting Up an Equatorial Guinea Subsidiary
Although it can take you weeks or months to finally incorporate, you’ll benefit from beginning work in Equatorial Guinea. Incorporating as an LLC will also come with additional benefits, as you won’t have to worry about your parent company incurring liability from the subsidiary’s actions. You can also operate your subsidiary independently of the parent company, and you can tailor operations to Equatorial Guinea’s culture.
Globalization Partners will give you more benefits sooner. Since we use our existing Equatorial Guinea PEO, you can start working in a day or less. With us serving as the Employer of Record, you won’t have to worry about meeting Equatorial Guinea’s subsidiary laws either.
Other Important Considerations
Companies need time, money, and expertise to complete the Equatorial Guinea subsidiary setup process successfully. Try to free up your schedule, delegate tasks, and work with key company players to set aside the necessary funds. If you don’t have someone in your company who understands all of Equatorial Guinea’s subsidiary laws, you should find an accountant, lawyer, or consultant who can help.
Let Globalization Partners Help With Your Expansion
Globalization Partners wants to make sure you succeed in your expansion process, which is why we offer Equatorial Guinea subsidiary outsourcing services. Contact us today to learn more.