How To Start A Business in Sao Tome & Principle

How to Start a Business in São Tomé and Príncipe - Step by Step Guide

Starting a business in São Tomé and Príncipe involves a few important steps, and this guide will take you through each process for both local and foreign investors. We’ve also included the fees and taxes associated with the registration and operation of a business in the country.

Step-by-Step Guide for Locals

1. Choose Your Business Structure: Most businesses in São Tomé and Príncipe are registered as sole proprietorships or limited liability companies (LLCs).
2. Register the Business Name: Business name registration is done through the São Tomé and Príncipe National Institute of Industrial Property (INPI).
   National Institute of Industrial Property (INPI)
   Fees: Ranges from STN 5,000 to STN 10,000 depending on the nature of the business.
3. Obtain a Tax Identification Number (TIN): After registering the business, you must obtain a Tax Identification Number (TIN) from the São Tomé and Príncipe Ministry of Finance.
   Ministry of Finance
   Fees: Free.
4. Register for VAT (if applicable): If your business’s annual turnover exceeds STN 10 million, you must register for VAT with the Ministry of Finance.
   Fees: Free, but monthly VAT returns are required.
5. Obtain Necessary Permits: Some businesses may require additional permits or licenses depending on the sector, such as agricultural, industrial, or tourism businesses.
   Fees: Varies depending on the industry and permit required.
6. Register with the Social Security Fund: If you employ workers, you need to register with the Social Security Fund and contribute to employee pensions.
   Social Security Fund
   Fees: Contribution rates are 8% for employers and 3% for employees.
7. Open a Business Bank Account: After registering your business, open a business account at one of São Tomé and Príncipe’s banks.
   Fees: Varies by bank but typically around STN 5,000 to STN 10,000 for account setup.

Step-by-Step Guide for Foreign Investors

1. Choose Your Business Structure: Foreign investors typically choose to establish a Limited Liability Company (LLC), joint ventures, or branch offices in São Tomé and Príncipe.
2. Obtain an Investment Certificate: Foreign investors must apply for an Investment Certificate through the São Tomé and Príncipe Investment Agency (Agência de Promoção de Investimentos de São Tomé e Príncipe - APISTP).
   São Tomé and Príncipe Investment Promotion Agency
   Fees: The investment certificate process is typically free, but fees may apply for administrative handling.
3. Register the Business: After receiving the investment certificate, foreign investors must complete the company registration at the São Tomé and Príncipe National Institute of Industrial Property (INPI).
   Fees: STN 10,000 to STN 20,000.
4. Obtain a Tax Identification Number (TIN): Foreign businesses must obtain a TIN from the Ministry of Finance after registering the business.
   Fees: Free.
5. Register for VAT (if applicable): Foreign investors with a turnover exceeding STN 10 million annually must register for VAT.
   Fees: Free registration, but monthly returns are required.
6. Obtain Necessary Permits: Certain business sectors require additional licensing, such as those in mining, telecommunications, and banking.
   Fees: Varies by sector and specific business type.
7. Register with the Social Security Fund: Foreign investors must also register with the Social Security Fund for employees working in their business.
   Fees: The contribution rate is 8% for employers and 3% for employees.
8. Open a Business Bank Account: Once the business is registered, a foreign investor must open a business account at a local commercial bank.
   Fees: Typically between STN 5,000 and STN 10,000.

Estimated Duration

• For Locals: 1-2 weeks
• For Foreign Investors: 2-3 weeks (including the investment certificate process)

Useful Resources

• National Institute of Industrial Property (INPI)
• Ministry of Finance
• São Tomé and Príncipe Investment Promotion Agency (APISTP)
• Social Security Fund