Setting up your Guinea subsidiary means your company can reap all the benefits of a global expansion. However, getting there means you need to learn Guinea’s subsidiary laws, spend months figuring out how to set up a Guinea subsidiary, and continue to keep running your parent company and other locations. By the time you’re ready to register your new entity, it could be months from when you first started.
Instead, G-P can help you get started working in Guinea in as little as a day using Guinea subsidiary outsourcing. We’ll act as the Employer of Record too, so you can focus on your business instead of worrying about compliance.
How to Set Up a Guinea Subsidiary
Many different factors can influence how to set up your Guinea subsidiary. First, where is your location within the country? Different cities or regions can have their own laws related to establishing a subsidiary, making it either easy or difficult to incorporate in the area. If you’re not familiar with the different regions in Guinea, we recommend working with a local expert who can help you find the best physical office space.
Next, you need to choose the type of entity that’s best for your operating goals in Guinea. You can incorporate as a limited liability company (LLC), public limited company, branch, or representative office, but each has its own restrictions. Your company will have the most freedom if it operates as an LLC and the least if it incorporates as a representative office.
Setting up your Guinea subsidiary as an LLC means you have to:
- Draft and sign by-laws
- Deposit start-up capital in a blocked bank account
- Register the company in the Register of Economic Activities
- Announce the incorporation in a journal for legal notices
- Submit two photos of your company’s director
- Submit a copy of your company director’s identification and visa
- Submit a rental contract for your office’s physical location
- Provide proof of a bank account containing all initial capital
Guinea Subsidiary Laws
Guinea’s subsidiary laws for LLCs require one shareholder and one director, both of whom can be a person of any nationality or corporate body, to register your subsidiary. However, the shareholder and director cannot be residents of Guinea. There are several fees involved in the incorporation process depending on whether you’re starting the company as an individual or a corporation. Individuals starting a company must pay about 212,500 GNF for all fees involved in the incorporation process. Corporations pay significantly more at 650,000 GNF for all included fees.
Benefits of Setting Up a Guinea Subsidiary
Although the Guinea subsidiary setup process is long, you can benefit from registering your company and starting work in the country. Many companies decide to use the LLC structure because it gives the parent company limited liability from the subsidiary. Plus, your subsidiary can choose a different operating structure from the parent company to fit Guinea’s overall culture.
The problem is that you can’t start to see these benefits until months after you finally set up your Guinea subsidiary. Since you can’t hire employees, pay them, or start working until you have a registered entity, you could even lose talented candidates or important business deals. That’s why G-P makes it easier to expand through Guinea subsidiary outsourcing. We’ll help you start working right away through our Guinea PEO and also shoulder all compliance along the way.
Other Important Considerations
If you’re expanding on your own and don’t work with a global PEO such as G-P, we recommend working with an expert in compliance. Whether they’re a lawyer, accountant, or consultant, an expert can help you meet Guinea’s subsidiary laws and avoid any fines or delays.
It’s also a good idea to work with your accounting department to set aside the money you’ll need for incorporation fees. You’ll have to travel back and forth to Guinea frequently, which requires time and money. Planning for these financial and time-consuming hardships can help you keep your parent company running smoothly.
Let G-P Help With Your Expansion
G-P has helped numerous companies expand across borders, and we can help you as well. Contact us today to learn more about Guinea subsidiary outsourcing and our suite of global expansion services.