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 Togo. 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 company name | 1 day | XOF 5,000 (name check) |
| 2 | The notary legalizes documents and buys stamps | 2 days | about XOF 175,000 |
| 3 | Deposit the company’s initial capital | 2 days | no charge |
| 4 | Deposit all the documents for company registration and pay fees at the Guichet Unique : CFE | 20-40 days | Court (XOF 8,250) + DGI (XOF 33,000)+ Centre de Formalite des Entreprises (XOF 20,000) + Chamber of Commerce (XOF 15,000) + Authorization of business establishment (XOF 9,000) |
| * 5 | Payment of all the fees at the cashier (BTCI) | 1 day (simultaneous with previous procedure) | included in previous procedure |
| 6 | Publication in a national news dailies or the Official Gazette | 3 days | XOF 61,360 (per publication) |