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 Sierra Leone. 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.
|No.||Procedure||Time to Complete||Associated Costs|
|1||Check the uniqueness of the company name and pick up a company registration form||1 day||SLL 10,000|
|2||Registration with the Registrar of Companies at the Office of the Administrator and Registrar General ( OARG)||2-3 days||SLL 405,000|
|3||Obtain Tax Identification Number (TIN) from the National Revenue Authority||1 day||no charge|
|4||Request a Business license with the Municipality of Freetown||2 days||SLL 750000|
|5||Registration with the Ministry of Labor and Social security||4 days||no charge|
|6||Make a company seal||2 days||SLL 50,000|