DOING BUSINESS IN AFRICA The example of guinea

The Guinean context

Many advantages for investors

▪ A young population

▪ Everything to build

▪ Abundance of natural resources

The wealth of GuineaGuinea is a beautiful country with 4 plant diversity natural areas:- Maritime Guinea coastal humid with his palm and coconut- Guinea's Fouta Djallon highlands (1200 m) with its pine forests and banana plantations. It is our tomatoes, strawberries and apples Terace!- The Upper Guinea region dry plateau (200 m-400 m) with the bush and savannah and its huge mango trees. There are also Neres, the shea trees and kapotiers.- Forested Guinea, composed of a virgin forest or emerges Mount Nimba (1750 meters). There are cocoa, coffee, rubber and pepper.Guinea is a country rich- The water tower of West Africa, acrossed by 120 rivers- Rich in gold and diamonds, mainly in Upper Guinea- Mining of bauxite and alumina in Maritime Guinea- A large reserve of iron in Guinea forrestière (untapped).

The investment code Guinean establishes a legal framework encouraging traders to participate in national development and contribute to achieving the objectives pursued by the government, by:

- The exploitation of natural resources- The local processing of local raw materials- Export Development

The code, promulgated by Order No. 001/PRG of January 3, 1987, provides:

- A set of benefits to sponsors Guinean and foreigners wishing to settle in the country,- A set of guarantees for investors- The benefits of different schemes- The obligations to eligible operators with the Code

Doing business in guinea : the conditions

Any person making the creation or expansion of a company in Guinea can enjoy tax benefits associated with one or more plans privileged if:

activity or business expansion contributes to the achievement of one or more of the priority objectives of the National Program of Economic and Social Development

The priority objectives:

- The promotion of small and medium enterprises Guinea- The development of nontraditional exports- The recovery, by transformation in Guinea, natural resources and local raw materials- The implementation of activities in areas less economically developed

The primary areas of activity:

- Companies agricultural production, particularly food crops and rural development;- Industrial crops with a stage transformation and packaging products;- Livestock enterprises with facilities to protect the health of livestock;- Fishing companies with processing facilities and conservation- Production of fertilizers, industry preparedness and mechanical or chemical - transformation products of plant origin, animal or mineral;- Business health and education;- Facilities and tourism industries and other hotel operations;- Enterprise real estate social nature;- Investment banks or other lending institution located outside of Zone 1 - referred to in Article 15 of the Investment Code of Guinea.- Companies with a forest regeneration program reserves

The different regimes:

At each of these objectives is a privileged treatment described as follows:

- Scheme for Small and Medium Enterprises Guinea;- Plan exporting firms;- Business Plan valuing natural resources and local raw materials;- Schemes of firms located in economically less developed area.

The admission schemes privileged

Conditions for the activity: All companies, except those performing the following activities: The trading activities defined as resale activity in the state of commodities purchased from outside the company;The exploration and mining and hydrocarbons, they are eligible for special arrangements defined in the Code mining and petroleum

Conditions for funding: At least 20% of the total cost for small and medium enterprises and 33% for other companies, including working capital of the proposed establishment or extension proposed for approval, must be financed by a capital investment

Conditions for Employment Any company must notify the National Investment Commission's goals of job creation and training of national

Business in Guinea : benefitsCommon benefits schemes privileged

▪ Exemption during the period for completion of initial investment that begins on the date of effect of approval to be completed by the start date of the approved activity, and later, after a within 2 years, rights and duties of inputs, including tax revenues, levied on imports in Guinea capital goods needed for the investment

▪ Deduction during the first 5 fiscal years from commencement of operations, profits liable to tax on business profits, an amount equal to 3 times the monthly salary of an employee at the level most or low minimum monthly wages, if a "minimum wage" was set up in Guinea, multiplied by the number of permanent posts occupied by Guinean nationals during the year under review, noting that the above amount will be reduced 50% for 4th and 5th Year Tax

▪ Tax Exemption for learning and paying fixed wages for a period of 5 years tax from the beginning of operations, and 50% reduction in the amount of the fee and the payment for 3 years.

Particular advantages associated with the plan of exporting companies

They enjoy tax for 5 years from commencement of operations, exemption of tax on business profits at a rate equal to that in the revenue produced for export and sales total of the company during the same fiscal year but that this exemption can not exceed 60% of profits

> Particular advantages associated with the regime of companies developing the natural resources and local raw materials

They receive during the first 5 fiscal years from commencement of operations, a deduction of profits liable to tax on business profits equal to 20% of intermediate consumption of Guinean origin as defined in the Article 14 of the Investment Code

> Particular advantages associated with the regime established companies in an area less economically developed ▪ Total exemption of taxes on business profits for the first 5 fiscal years following commencement of operations ▪ One-third reduction in the rate of tax revenues collected on the production or services provided by the company during the first 5 fiscal years following commencement of operations