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 Gabon. 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 | Deposit the legally required capital in a bank and obtain the deposit evidence | 2 days | no charge |
| 2 | Verify and reserve the company name | 1 day | XAF 25,000 |
| 3 | Obtain extracts of criminal record of the company manager | 7 days | XZF 3,000 |
| 4 | Deposit and register the company’s articles of association with the public notary | 14 days | XAF 375,000 |
| 5 | Deposit documents with the Investment Promotion Agency (Agence de Promotion d’Investissement) | 30 days | XAF 50,000 (APIP fee) + XAF 60,000 (registration fees) + XAF 80,000 (stamps) |
| * 6 | Pay fees and obtain receipt | 1 day (simultaneous with previous procedure) | included in procedure 5 |
| 7 | Publish the notice of company formation in a legal journal (Hebdo-informations) | 2 days | XAF 60,000 |
| 8 | Notify the Ministry of Labor the commence of operation | 1 day | no charge |
| 9 | Register the employees with the Social Security Authorities | 1 day | no charge |