Options for registering companies in Burkina Faso
Burkina Faso is a unitary state in West Africa and a member of the West African Economic and Monetary Union (WAEMU). The country uses the West African CFA franc (XOF) as its currency and applies a legal framework harmonised under OHADA company law.
Business entities are registered with the competent commercial registry and regulated under OHADA corporate law. Foreign investment is permitted across most sectors, with capital contributions and profit repatriation governed by applicable investment and tax legislation.
Burkina Faso offers international investors the following legal structures for establishing a local presence:
Limited liability company (Société à responsabilité limitée - SARL)
- A limited liability company is an incorporated operating entity in which shareholders’ liability is limited to the amount of their capital contribution.
- This structure enables the establishment of a fully operational and revenue-generating business presence under Burkinabè law.
- A share capital of XAF 1 million is commonly adopted in practice at incorporation.
- The company is subject to corporate income tax at a standard rate of 27.5% and must maintain a registered office in Burkina Faso.
- This structure involves full incorporation and ongoing compliance obligations and is not designed for short-term or non-operational presence.
Branch office (Succursale)
- A branch operates as an extension of a foreign parent company and does not have separate legal personality.
- This structure supports the conduct of business activities in Burkina Faso under direct parent-company control.
- No minimum share capital is required to register a branch.
- Profits attributable to the branch are subject to corporate income tax at 27.5%. A branch withholding tax of 12.5% applies to remitted profits. The branch must appoint a local representative and maintain a registered office. Investment incentives apply.
- As liabilities attach directly to the foreign parent company, this structure does not provide liability isolation.
Free zone companies (ZFIs and ZFEs)
- Free zone companies are operating entities established under Burkina Faso's free-zone and investment-promotion frameworks, including Industrial Free Zones (ZFIs) and Export Free Zones (ZFEs).
- These structures support export-oriented manufacturing, processing, and transformation activities carried out within designated free-zone or export-focused environments.
- A share capital of XOF 1 million is commonly adopted in practice when incorporating as a limited liability company.
- Free zone operations apply specific indirect tax treatments. Corporate income tax is set at 27.5%, with statutory tax holidays available under defined eligibility conditions.
- Eligibility for free-zone status depends on compliance with approval conditions and export or operational requirements and is not intended for domestically focused service activities.
Comparison of the common types of companies in Burkina Faso
Information verified against Investment Promotion Agency of Burkina Faso (API-BF)
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