How To Start A Business in Sierra Leone

How to Start a Business in Sierra Leone - Step by Step Guide

Starting a business in Sierra Leone involves several steps for both local and foreign investors. This guide provides a detailed outline of the process, including relevant fees and taxes, to help you successfully set up your business.

Step-by-Step Guide for Locals

1. Choose Your Business Structure: Common business structures in Sierra Leone include Sole Proprietorships, Partnerships, and Limited Liability Companies (LLC).
2. Register Your Business: All businesses must be registered with the Sierra Leone Business Registration Office (BRO).
   Business Registration Office (BRO)
   Fees: Registration fees range from SLL 250,000 to SLL 500,000 depending on the business type.
3. Obtain a Taxpayer Identification Number (TIN): Apply for a TIN with the National Revenue Authority (NRA).
   National Revenue Authority (NRA)
   Fees: Free.
4. Register for VAT: If your business has an annual turnover exceeding SLL 100 million, you must register for VAT.
   Fees: Free, but monthly VAT returns are required.
5. Social Security Registration: Employers must register with the National Social Security and Insurance Trust (NASSIT) to make contributions for their employees.
   National Social Security and Insurance Trust (NASSIT)
   Fees: 10% total contribution, split 5% employer and 5% employee.
6. Obtain Relevant Permits and Licenses: Depending on the nature of your business, you may need additional permits or licenses, especially for sectors like healthcare, tourism, and mining.
   Fees: Varies based on business type.
7. Open a Business Bank Account: After registering your business, you must open a business bank account with any of the commercial banks in Sierra Leone.
   Fees: Varies based on bank and services provided.

Step-by-Step Guide for Foreign Investors

1. Choose Your Business Structure: Foreign investors can choose from the same business structures as locals, including Limited Liability Companies (LLC) or Partnerships.
2. Register Your Business: Foreign businesses must also register with the Sierra Leone Business Registration Office (BRO).
   Business Registration Office (BRO)
   Fees: Registration fees range from SLL 500,000 to SLL 1,000,000 for foreign investors.
3. Obtain a Taxpayer Identification Number (TIN): Like local businesses, foreign investors must apply for a TIN with the National Revenue Authority (NRA).
   National Revenue Authority (NRA)
   Fees: Free.
4. Register for VAT: Foreign businesses with an annual turnover exceeding SLL 100 million must register for VAT.
   Fees: Free, but VAT returns are required.
5. Register with NASSIT: Foreign businesses employing staff must also register with the National Social Security and Insurance Trust (NASSIT).
   National Social Security and Insurance Trust (NASSIT)
   Fees: 10% total contribution, with 5% from the employer and 5% from the employee.
6. Obtain Necessary Permits and Licenses: Additional licenses or permits may be required, depending on the type of business.
   Fees: Varies based on the business type.
7. Open a Business Bank Account: Foreign investors must open a business bank account with any of Sierra Leone's commercial banks.
   Fees: Varies depending on the bank.

Estimated Duration

• For Locals: 1-2 weeks
• For Foreign Investors: 2-3 weeks (including registration with relevant authorities)

Useful Resources

• Business Registration Office (BRO)
• National Revenue Authority (NRA)
• National Social Security and Insurance Trust (NASSIT)