Starting a Business in The Gambia: Gambian Company Formation
Starting a new business in The Gambia can be both exciting
and rewarding, but it is also full of challenges. The level
of commitment that you will need should not be underestimated.
The success of your business will partly depend on your attitude
and skills. This means being honest about a range of issues
- your knowledge, your financial status and the personal qualities
that you can bring to your new business.
It is a requirement under the Business Registration Act 1973
to register and obtain a Certificate of Registration or where
applicable, a Certificate of Incorporation before operating
a business in The Gambia. The Certificate or a certified copy
must be displayed in a conspicuous position at the principal
place of business. The Certificate is valid for the calendar
year and must be renewed yearly.
Businesses in The Gambia may be registered as a company (with
a maximum size of 50 members), a sole proprietorship, a partnership,
or other forms of business (namely co-operatives, branches
of foreign companies).
-
Procedure 1. Search for company name takes 1 day
and costs GMD 50 to complete. The search is conducted
manually at the registry
-
Procedure 2. Notarize company statutes takes 1 day
and costs GMD 150 to complete. While there are no set
notary fees, GMD 100 are commonly charged.
-
Procedure 3. Payment of stamp duty and deposit of
corporate tax with Commissioner of Income Tax takes 1
day. The fee for the incorporation certificate is approximately
US $ 18 (GMD 500). Stamp Duty is $35 per copy of the company
incorporation documents (at least 3 copies), one of which
has to be deposited with Companies Registry and one with
the Commissioner of Income Tax. The deposit of corporate
tax with Commisioner of Income Tax varies starting from
approximately $178 (GMD 5,000) upwards which is payable
prior to incorporation at the Companies Registry.
-
Procedure 4. Register with the Commercial Registry
takes 2 day and the registration fee varies depending
on the share capital of the company based on a tariff
published by the Finance ministry. The tariff as of 2005
is stated in the national currency (Dalasis - "D") as
follows:- from D5,000 to D1 million = D5,000, from D1
million to D10 million = D25,000, from D10 million to
D20 million = D35,000, from D20 million to D40 million
= D65,000, from D40 million to D59 million = D85,000,
from D60 million upwards = D100,000.
-
Procedure 5. Obtain operational license takes 1
day and the standard fee is GMD 5,000 for the Banjul City
Council or the biggest municipality (Kinifing Municipality).
This license has to be renewed annually.
-
Procedure 6. Forward copies of the employment contracts
to the labor department and in accordance with the Labor
Act, copies of employees' contracts must be sent to the
Department of Labor.
-
Procedure 7. Register employees with the Social
Security and Housing Finance Corporation. The employees
contribute 5% of their monthly salary to the social security
department; the employer pays 10% of the employees' salary.
Depending on the number of employees, this process takes
maximum 7 days.
Labour and Employment in Gambia: The Labour Act
The legal framework of labour relations consists of the Labour
Act, 1990, and of regulations issued thereunder. Its administration
is the responsibility of a Commissioner of Labour, who acts
under the supervision of the Department of State for Trade,
Industry and Employment. The Act is a comprehensive document
that covers the general conditions of employment including
dismissal as well as recruitment and hiring of labour, registration
and training, protection of wages, registration of trade unions
and employers' organisations, industrial relations, and procedures
for the settlement of labour disputes.
The 1990 Labour Act has been under review, with a view toward,
among other things, making labour legislations in The Gambia
supplementary to and supportive of the aspirations of Vision
2020 in the area of industrial relations and effective worker
protection.
The has one of the most affordable labour both in terms of
costs of hiring and maintenance. The Gambian workforce is
generally regarded as friendly and hardworking
The Gambia has a liberal policy concerning the employment
of foreigners for managerial and technical assignments. Depending
on the requirements of the company, as judged by an allocation
committee, the company is allotted an expatriate quota for
specific posts for a stipulated period of time.
Applications for expatriate quotas should be made on forms
obtainable from GIPFZA, or from the Secretary, Expatriate
Quota Allocation Board, Office of The Vice President, Banjul
Tel. +(220) 227-153.
When permission has been secured, a residence permit should
be obtained, usually after the arrival in The Gambia of the
person(s) concerned. The entry permit covers the immediate
members of the expatriate's family. However, they are not
permitted to undertake any employment without prior permission.
Education and Training in Gambia
Primary education in The Gambia is free but not compulsory.
In the 1998-1999 school year 150,400 children were enrolled
in primary school (81 percent of this age group), while 47,100
were enrolled in a secondary school (31 percent of secondary
school-aged children). The country’s institutions of
higher education include The Gambia College, in Bríkama,
and several technical and training schools.
Gambian Employment in Agriculture and Fishing
Some 82 percent of the working population of The Gambia is
engaged in agriculture. Rice and millet, as well as cattle,
sheep, goats, and poultry, are raised for local consumption.
Peanuts are grown primarily for export; the crop amounted
to 126,000 metric tons in 2001.
The sale of peanuts and peanut products accounted for about
three-quarters of total yearly domestic exports by value in
the 1990s.
The government has introduced the raising of cotton, sisal,
citrus fruits, and tobacco to diversify agricultural production.
The coastal villages engage in fishing. In 1997 the fish catch
was 32,258 metric tons, mostly from marine waters.
Jobs in Manufacturing, Currency, and Trade
Manufacturing in The Gambia is limited mainly to the processing
of peanuts and other primary products and to the building
of fishing boats. Other manufactures include beverages, clothing,
footwear, and handicrafts. The country’s unit of currency,
adopted in 1971, is the dalasi (12.79 dalasi equal U.S.$1;
2000 average), consisting of 100 butut; it is issued by the
Central Bank of The Gambia (1971).The cost of The Gambia’s
yearly imports is usually much more than its export earnings;
in 2000 imports totaled $210 million and exports were valued
at $9 million. The main trading partners for exports were
Japan, Belgium and Luxembourg, Senegal, Guinea, France, and
the United States; principal partners for imports were the
China, Côte d’Ivoire, Hong Kong, United Kingdom,
Germany, Senegal, Thailand, and the United States.
The Gambia’s tourist industry
is a growing source of foreign exchange; the country hosted
91,000 visitors in 1998.
|
