Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Mauritania. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Deposit the legally required initial capital in a bank and obtain deposit evidence | 1 day | no charge |
| 2 | Deposit the company’s deed and articles of association with the notary | 1 day | 2% of capital up to MRO 1,000,000 + 1.5% of capital from MRO 1,000,001 to MRO 3,000,000 + 1% of capital from MRO 3,000,001 to MRO 7,000,000. |
| 3 | Register the statuts with the Direction des Domaines | 1 day | 0.25 % of capital + MRO 200 per page for stamps |
| 4 | Registration with the Clerk’s Office for Commercial Registry (Greffe du Tribunal de Commerce) | 2 days | included in previous procedure |
| 5 | Publication in a newspaper | 2 weeks | MRO 20,000 to 30,000 |
| * 6 | Register with the Tax Department (Direction Générale des Impots) and get a fiscal number | 1 day (simultaneous with previous procedure) | MRO 60,000 |
| * 7 | Register for social security with the Caisse Nationale de Sécurité Sociale | 1 day (simultaneous with previous procedure) | no charge |
| * 8 | Apply to the Ministry of Labor for a permit to start a lucrative business | 4 days, depending on complexity of drafting and availability of notary (simultaneous with previous procedure) | no charge |
| * 9 | Send a notification letter of starting the business to the Labor Inspector | 1 day (simultaneous with previous procedure) | no charge |