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 Equatorial Guinea. 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 | Obtain a copy of the criminal records | 1 day | no charge |
| 2 | Notary legalizes company statutes | 3-14 days | 3-6% of capital |
| 3 | Register public deed in the commercial registry | 2-3 days | 3% of capital |
| 4 | Open bank account and obtain bank certificate (solvencia bancaria) | 1 day | no charge |
| 5 | Obtain certificate of solvency | 2 days | CFA 10,000 – 15,000 (stamps) |
| 6 | Apply for authorization of establishment by the Prime Minister | 1-12 months | CFA 2000 (stamp) |
| * 7 | Apply for registration with the Department of Small and Medium-size Companies at the Ministry of Commerce Ministerio de Economia, Comercio y Promoción Empresarial) | 1 day (simultaneous with previous procedure) | CFA 100000 |
| * 8 | Apply for registration with the Department of Commerce at the Ministry of Commerce (Ministerio de Economia, Comercio y Promoción Empresarial) | 1 day (simultaneous with previous procedure) | CFA 150000 |
| * 9 | Apply for tax registration | 1 day (simultaneous with previous procedure) | 1% of capital (tax identification number – NIF) + 1% of capital (minimum fiscal quota) + CFA 2,000 (tax ID number) |
| * 10 | Apply for registration with the Ministry of Labor of the start of operations | 1 day (simultaneous with previous procedure) | CFA 300 (form) + CFA 6,750 (small) - CFA 12,500 (medium-sized) |
| * 11 | Pay fees into treasury’s bank account | 1 day (simultaneous with previous procedure) | included in procedure 7-10 |
| 12 | Obtain confirmation from Treasury for receipt of payment | 3-5 days (simultaneous with previous procedure) | no charge |
| 13 | Provide confirmation of payment and obtain license from Department of Small and Medium-size Enterprises | 14 days (simultaneous with previous procedure) | included in procedure 7 |
| * 14 | Provide confirmation of payment and obtain license from Department of Commerce | 14 days (simultaneous with previous procedure) | included in procedure 8 |
| * 15 | Obtain tax identification number (NIF) | 2 days (simultaneous with previous procedure) | included in procedure 9 |
| * 16 | Obtain registration number with Ministry of Labor | 1 day (simultaneous with previous procedure) | included in procedure 10 |
| * 17 | Obtain social security number | no charge | no charge |
| * 18 | Register for social security | 1 day (simultaneous with previous procedure) | CFA 300 per page |