Expanding your company around the globe is probably a dream come true for you as it is for many other executives. However, that dream comes with some complications that you’ll need to work out before experiencing the benefits. You must learn how to set up a Guinea-Bissau subsidiary or choose to work with a global PEO who will let you use their subsidiary.
Globalization Partners is a global PEO that offers Guinea-Bissau subsidiary outsourcing. We are global compliance experts who will handle everything from hiring to benefits and compensation on your behalf. Since we act as the Employer of Record, you won’t have to worry about compliance, and instead, you can focus on running your business.
How to Set Up a Guinea-Bissau Subsidiary
Guinea-Bissau recently switched to a one-stop-shop incorporation system, which has made it easier to set up a subsidiary in the country. However, the process still depends on location and entity. States in the US often have their own laws on top of federal requirements, and the same can hold true for different cities or regions in Guinea-Bissau. That’s why we recommend working with an expert who can help you find the right location for your business.
Another consideration is your type of entity. The Guinea-Bissau subsidiary laws you must follow will depend on whether you’re incorporating as a limited liability company (LLC), branch, representative office or other entity. It’s important to choose an option that aligns with your business goals. Many companies, especially those that want to perform a wide range of activities in the country, choose to incorporate as an LLC.
The steps to set up a Guinea-Bissau subsidiary as an LLC include:
- Notarizing all company statutes
- Registering your company at the Commercial Registry
- Obtaining a tax identification number (TIN)
- Obtaining work permits for all of your foreign investors
- Receiving commercial, industrial, and tourism licenses, depending on your industry
- Receiving urban inspections
- Opening an in-country bank account
Guinea-Bissau Subsidiary Laws
Guinea-Bissau’s subsidiary laws for LLCs are generally favorable. You’ll need at least one shareholder and one director to incorporate. Your company is allowed to be wholly foreign-owned, and your shareholders and directors do not need to live in Guinea-Bissau. You must obtain at least 1,525 EUR in start-up capital to complete the incorporation process. Once you create an in-country bank account, you should deposit that money immediately.
Benefits of Setting Up a Guinea-Bissau Subsidiary
The biggest benefit of completing the Guinea-Bissau subsidiary setup process is that you can begin working as soon as you incorporate. You’ll have a legal presence, and you can start creating relationships with other companies and employees. When you incorporate as an LLC, you can also benefit by keeping your parent company and subsidiary separate. The parent company will be protected from the subsidiary’s actions, and you can run your subsidiary according to Guinea-Bissau’s laws.
Despite these benefits, it will take a significant amount of time before you can operate in Guinea-Bissau. However, Globalization Partners will allow you to bypass the requirement to set up your own subsidiary by allowing you to use our existing infrastructure. Our team will meet all Guinea-Bissau subsidiary laws, and we’ll take care of all the aspects of an expansion, such as recruiting, payroll, compensation, and more.
Other Important Considerations
If you still decide to set up your own Guinea-Bissau subsidiary, you’ll first need to employ a Guinea-Bissau subsidiary law expert. Whether it’s a consultant, accountant, or lawyer, they can help you stay compliant and avoid fines and delays. You can also have someone in your office learn the applicable laws, but doing so will leave you open to error.
We also recommend working with other departments in your office, such as accounting or HR. Your accounting team can tell you how much money you’ll need for the entire process, and your HR employees can help delegate tasks to save time. It could take a while to fully incorporate, so it’s best to start the entire process early.
Let Globalization Partners Help With Your Expansion
Globalization Partners envisions a world where all companies can expand without hassle. Contact us today for more information about Guinea-Bissau subsidiary outsourcing and how it can help you.