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Gabon company incorporation

Healy Consultants Group PLC
07 March, 2014

Gabon is a developing nation in Africa, heavily reliant on oil production for economic growth. Huge reserves of oil offer opportunities to aggressive entrepreneurs, but the large effect fluctuating oil prices has on the economy makes Gabon company registration a risky endeavor. However, there are several advantages to Gabon company registration, such as:

1.    Gabon has been a full member of the World Trade Organization since 1995 and thus, enjoys all the trade benefits that membership provides;

2.    Gabon has a fast-growing but erratic economy. Strong oil and timber prices have fueled its recovery after the global downturn, with Gabon experiencing growth rates of 4-5% for the past 2 years;

3.    Gabon has extensive reserves of oil, timber and manganese. The over 300,000 barrels of oil produced daily accounts for 50% of Gabon’s economy;

4.    A Gabon Limited Company (SARL) requires only 2 shareholders and 1 manager. There are no restrictions on the shareholders, so a Gabon SARL may be entirely foreign owned;

5.    A Gabon LLC requires a minimum share value of only 1 million XAF (US$ 1,930);

6.    It is easy to open a global corporate bank accounts to support Gabon company formation;

Foreign investors who plan to invest in Gabon should take into account the following disadvantages of the country:

1.    Gabon company formation is complex and time-consuming, requiring an average of 2 months to complete;

2.    Gabon is negatively ranked as the 102nd least corrupt country in the world, according to the 2012 Corruption Perception Index by Transparency International, a global measure of corruption amongst public officials and politicians;

3.    A Gabon SARL is liable for a corporate tax rate of 40%, and may be liable for a VAT rate of 18%;

4.    Gabon was negatively ranked as the 99th freest economy in the Heritage Foundation’s 2013 Index of Economic Freedom, a measure f freedom enjoyed in business, trade, monetary, financial, investment and labor markets. high corruption and poor enforcement of property rights were listed as the main reasons;

5.    Gabon is negatively ranked as the 170th easiest country to do business. The international Finance Corporation study lists registering property and difficulties protecting investors as the main barriers to business;

6.    Electricity is the biggest challenge while conducting a business in Gabon;

In addition, foreign companies should be aware that Gabon statistics and market data are usually imprecise, and business transactions tend to take longer than expected. However, as a developing country, Gabon offers a potential market for global investors 

About the Author

Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com


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