When you want to expand your business, creating a subsidiary in a new country is just one of your options. At Globalization Partners, we understand the process of establishing a subsidiary in...
Read MoreWhen you want to expand your business, creating a subsidiary in a new country is just one of your options. At Globalization Partners, we understand the process of establishing a subsidiary in South Sudan. We can help you sidestep that process and get right to work.
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When you want to expand your business, creating a subsidiary in a new country is just one of your options. At Globalization Partners, we understand the process of establishing a subsidiary in South Sudan. We can help you sidestep that process and get right to work.
Subsidiary setup starts with reserving your company name at the Ministry of Justice and Constitutional Development. You must submit three name options for your entity. The Business Registry will confirm one after performing a search, and your reserved name will be valid for 30 days.
Next, you’ll work with a lawyer to create your Memorandum and Articles of Association. The lawyer you work with must have a valid license to practice in South Sudan. Along with your Memorandum and Articles of Association, you’ll need to attach a copy of your passport. You must submit these materials with the appropriate applications to the Business Registry.
Once the Registry approves your materials, you’ll receive a certificate of incorporation. You must present this certificate to the Government of Jubek State to obtain an operating license. After these four initial steps, you’ll have to register with a few different agencies to practice business.
You’ll need to apply for a trading license with the appropriate payam. Once you apply, the payam will perform an inspection of your business premises. You will also need to register with the Ministry of Finance to receive a tax identification number (TIN). Your company must register with the Chamber of Commerce and the Ministry of Labor as well.
When you begin your subsidiary setup, you’ll have to follow a series of regulations. While the country does not require a minimum share capital for residents starting a company, international business owners must invest a minimum of SSP 13,026,000 to establish their entity.
While subsidiaries can be wholly owned by an international entrepreneur, there are some limitations on the types of businesses a nonnational can operate in South Sudan. Nonnationals cannot perform any kind of business in transportation or foreign exchange. If a nonnational wants to work in imports, exports, and trade, they must form a joint venture with a majority local shareholder.
Before you incorporate a company, you should confirm that your business has the resources to do so. The two essential resources you need to establish a subsidiary are time and money.
The application process may take up to a few weeks. You should factor in time spent outside of incorporating as well. Consider the time it takes to determine your director and board members and to find a location to practice business. If you choose to build an office, that process will add more time and expenses.
Along with various application fees and the required investment capital, you should consider the cost of flying to South Sudan, working with a lawyer, and paying for a property.
While subsidiary establishment requires many resources, these entities offer a few key benefits. With a subsidiary, your international company will have a separate identity from your parent company in two ways — culturally and legally.
With a separate identity, your international subsidiary can easily adapt to the local business culture. A subsidiary also gives you a new legal presence. If your subsidiary encounters issues with compliance, your parent company will not be responsible.
Globalization Partners can simplify your international growth with subsidiary outsourcing. Instead of setting up your own entity, you’ll hire your employees through ours. Your company can enjoy all the benefits of a subsidiary without the setup.
When you’re ready to build an international team in South Sudan, Globalization Partners is ready to help. Get in touch today.
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