Do You Need a Registered Company To Do Business In Africa?

Do You Need a Registered Company To Do Business In Africa?

Africa is on the rise. Currently, 6 of the world’s 10 fastest growing economies are in Africa. Whether you are a business or entrepreneur looking for growth, the African continent has what you are looking for. Today’s picture is one of a 54 countries’ large continent with tremendous economic growth, investment, and rapidly rising living standards.

Why Choose Africa for Doing Business

Over the last decade, national and regional economies are consistently accelerating their growth and attracting the attention of foreign investors across the continent. Various factors have contributed towards this positive momentum, such as economic policies increasingly favorable, growing middle class with a taste for modern consumer goods and a new generation of policy-makers and business leaders. Increased regional mobility, rapid urbanization and population growth have also boosted demand on the continent.

Over the past years, foreign investment has been pouring in Africa. A good number of international companies have already seen the huge long-term potential for business. Ivory Coast, for example, despite having faced several setbacks due to political instability, now has the second fastest growing economy in Africa, reaching almost 9% per year. Abidjan is now home to Burger King, a Carrefour supermarket, a Paul bakery and even a Heineken brewery, just to name a few. The roads may be new, but the path to profitable new markets is already set.

Key Figures About Business In Africa

Population and Demographics

500 million Africans are between the age of 18 and 24. By 2040, the forecast is 1.1 billion — more than in China or India

40% of the global population growth will be in Africa by 2050

Markets and Consumers

Consumer expenditure is set to rise from USD 600 billion in 2010 to nearly USD 1 trillion in 2020

Consumer-facing industries (retail/wholesale, banking, telecommunication and tourism) in Africa are expected to grow by USD 400 billion by 2020, with apparel, consumer goods and food accounting for $185 billion

Urban African consumers spend the largest share of their budgets (45%) on food and groceries – more than the average consumer in the BRIC countries (Brazil, Russia, India and China)

Economic Performance

6 of 10 of the world’s fastest growing economies are currently in Africa

Average annual return on capital of African companies was 65-70% or higher than that of comparable companies in China, India, Indonesia, and Vietnam.

Challenges To Register a Business in Africa

As we have seen, the African continent is full of opportunity for sustainable businesses or even test markets. Despite these promising trends and forecasts, significant challenges persist across the African continent, especially when registering a new entity. Each country on the continent has different laws, different regulations, different requirements for entry and different tax compliance procedures.

These differences can further be seen when comparing the DTF score (distance to frontier) and DB rank (doing business) from the World Bank Group: Mauritius stands at the 25th position worldwide on the ‘Ease of doing business ranking’. This makes the small island the highest ranked on the African continent, positioning itself ahead of business giants like France, Japan and Spain. On the other hand, the last spot out of the 190 countries belongs to another African country; Somalia.

Is Having An Entity In Africa Necessary To Employ People?

Direct answer: No, it is not. There is a solution to business starting out in Africa, all of which can be done in a fast and simplified manner whilst remaining fully compliant. With Employment outsourcing you can onboard workers anywhere in Africa within a couple of weeks.

Africa HR Solutions Ltd aims to ensure 100% compliance for all the expatriates, local employees and businesses operating throughout Africa. Through the usage of several systems as well as advisory services from in-country law, accounting and auditing firms, we aim to stay current in terms of all required statutory deductions. Below are the areas where Africa HR Solutions can help you get your business up and running with minimal downtime.

Employment Outsourcing

Africa HR Solutions can act as the legal Employer of Record for your workers in 48 countries.  This means that you will outsource the hire, the employment and the payroll functions to us while you focus on your business goals and workers tasks and duties. We will take care of the administration and legal aspects of the employment.


Our company provides cost effective and full outsourced payroll solution to our clients operating in Africa. We pride ourselves towards flexibility and high-quality standards of customer service. Africa HR Solutions has a dedicated team of experts that understand the complexities of African payroll. We have developed the tools and skills to deliver high quality payroll services all around Africa.

Immigration Assistance

Africa HR Solutions offers immigration solutions for expatriates across the African continent. We have immigration specialists in Africa both for foreign and 3rd party nationals. From the letter of invitation to enter the country to the supply of work permit, our dedicated local team will sponsor and assist the expatriate in all the different steps with the local immigration authorities. Africa HR Solutions will strive to ensure that all paperwork is completed timely and accurately, and that the entire process is done in accordance with the local legislation to reduce the risks of denial.

Medical Insurance

Covering your staff while operating in Africa is essential. Therefore, we ensure that the best medical insurance is offered to your workers. We work very closely with multinational insurance companies allowing us to offer the best package to workers to suit the conditions of their assignment.

Offshore Payment Facilities

Africa HR Solutions provides offshore payment services to clients and expatriates wanting to be remunerated out of their country assignment and/or out of their country of residence. We have partnered with major financial institutions to enable the most secure and fast offshore facility Africa has to offer.

Salary Surveys

Africa HR is a partner to Birches Group to provide salary surveys across Africa. These surveys are released thrice yearly for each country, for the most up-to-date data. Reports can be prepared for any job in any African market.

Additional Services

  • Meet and Greet
  • Handling of Expenses
  • Registration of Entity
  • Car Rental
  • First Accommodation
  • Local Pension Fund
  • Opening of Bank Account
  • Local SIM Card
  • First Office Support

Final Thoughts

The years to come give a highly optimistic outlook and promising forecasts. With its one billion people spread across 54 different markets, the potential is beyond imagination. Early movers and forward-thinking businesses will seize this opportunity and accept the African invitation.

Africa HR Solutions is here to assist your business and ensure your vision is translated into a sustainable venture.

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About africaHRsolutions

Based in Mauritius, we aim to provide our Clients with the best employment and payroll outsourcing solutions for all employees across the African continent.

In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.

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