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Sudan
We have a team of experienced professionals dedicated to supporting all your business requirements—ensuring smooth operations and full regulatory compliance. This strong foundation enables you to confidently establish and grow your business in Sudan with efficiency and assurance.
WHY SUDAN?
Amongst all the countries in the African continent, Sudan, officially the Republic of the Sudan, is located in North-East Africa and is the third largest country by area. It is also one of the more populous nations in the region. The capital of Sudan is Khartoum, which is the largest and most populated city, serving as a vital economic and administrative hub. According to the report of the World Bank, Sudan is classified as a Low-Income Nation, currently facing significant economic and humanitarian challenges due to ongoing conflict. The currency of Sudan is the Sudanese Pound (SDG), and the value of 1 Indian Rupee is approximately 7.90 Sudanese Pounds as of today’s exchange rates (June 2025).
The population of Sudan was estimated to be around 49.3 million in 2024. Its neighbouring countries are Egypt to the north, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the southwest, Chad to the west, and Libya to the northwest. The official languages of the country are Arabic and English. The majority of the Sudanese population practices Islam. Currently, Sudan has several international airports, with Khartoum International Airport being the main gateway, though flight operations have been severely impacted by the ongoing conflict. As Sudan borders the Red Sea, it has key commercial seaports like Port Sudan, which are crucial for fulfilling the country’s trade requirements, facilitating the import and export of goods and resources. The corporate income tax rate in Sudan generally ranges from 15% to 35%, depending on the sector, with specific rates for oil companies. However, the taxation landscape is highly impacted by the ongoing conflict and economic instability.
ADVANTAGES
- Regional Hub: Sudan is strategically positioned at the intersection of Sub-Saharan Africa and the Middle East, serving as a gateway to Northeast Africa.
- Maritime Access: The Red Sea coastline provides a crucial trade and logistics corridor, connecting landlocked neighbours to international shipping routes.
- Market Access: It borders seven countries, offering future access to a regional market of over 50 million consumers.
- Mining Wealth: Sudan is one of Africa’s top gold producers. It also possesses largely untapped deposits of chromium, manganese, iron ore, copper, and nickel.
- Agricultural Potential: Known as the “World Food Basket,” the country has between 150 million and 400 million hectares of arable land. Fertile soil from the Nile allows for large-scale production of gum Arabic (producing over 80% of global supply), cotton, oilseeds, and livestock.
- Energy Reserves: Despite the independence of South Sudan, Sudan retains significant oil reserves, refining capacity, and world-class solar resources for renewable energy development.
- Foreign Ownership: The Sudanese government allows 100% foreign ownership of businesses without requiring a resident partner.
- Special Economic Zones (SEZs): Free zones, such as the Red Sea Free Zone, offer tax exemptions (up to 15 years), customs-free imports/exports, and unrestricted profit repatriation.
- Tax Relief: Strategic projects, particularly in manufacturing and renewable energy, may be eligible for Business Profit Tax exemptions for 5 to 10 years.
- Pro-Investment Laws: The National Investment Encouragement Act of 2013 aims to protect foreign investors from discrimination and facilitate capital repatriation.
- Reconstruction Needs: Post-conflict stabilization will require massive investment in infrastructure, including roads, bridges, public utilities, and housing.
- Young Workforce: A large youth demographic provides a potential labour force and a growing domestic consumer market once stability returns.
- First-Mover Advantage: Investors who establish a presence early may benefit from reduced competition in emerging or untapped markets as the economy recovers.
TAX REGIME
Corporate Income Tax (CIT)
Business profit tax rates vary significantly depending on the sector of activity:
- Industrial Companies: 10%
- Trading, Real Estate, and Insurance: 15%
- Petroleum Sector: 35% for companies and subcontractors involved in oil and gas exploration.
- Banks: 30%.
- Telecommunications: 7% of gross revenue.
- Social Development Tax: A 5% tax often applies to companies otherwise exempt under incentive acts.
- Tax-Free Bracket: First SDG 14,400 (annual) is taxed at 0%.
- Progressive Rates: Subsequent income is taxed in bands of 5%, 10%, and finally 15% on the balance.
- Other Income: Non-residents are typically taxed at a flat rate (e.g., 20% on certain benefits).
- Value Added Tax (VAT): The standard rate is 17% for most goods and services. A higher rate of 30% applies to tobacco products and telecommunication services.
- Excise Duty: Imposed on specific local products like soft drinks, cars, cement, and petroleum at rates usually between 2% and 10%.
- Capital Gains Tax: A flat rate of 2% applies to the sale of capital assets, including land, buildings, and shares.
- Zakat: An Islamic tax of 2.5% is levied on the working capital of companies owned by Muslim shareholders.
- Withholding Tax (WHT): Non-residents are subject to WHT on interest (7%), royalties (15%), and technical service fees (15%).
- Stamp Duty: Applied to various legal documents and instruments at varying rates.
SUDAN COMPANIES
Limited Liability Company (LLC): A flexible structure with limited shareholder liability, favoured by foreign investors.
Public Joint Stock Company (JSC): Suitable for larger enterprises, often requiring more complex setup.
Branch Office: For foreign companies wanting to operate directly in Sudan.
Representative Office: For promotional or liaison activities, not direct commercial operations.
Partnership: Traditional partnership structures are available.
Sole Proprietorship: For individuals running a business alone.
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Contact Us
Get in touch with the right people to get the right help in setting up your business in Sudan.
enquiries@chandrawatpartners.com.