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Togo

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 Togo with efficiency and assurance.

WHY TOGO?

Togo, officially the Togolese Republic, is a country in West Africa. It is bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It is one of the least developed countries and extends south to the Gulf of Guinea, where its capital, Lomé, is located. It is a small, tropical country, spanning 57,000 square kilometres (22,000 square miles) with a population of approximately 8 million, and it has a width of less than 115 km (71 mi) between Ghana and its eastern neighbour Benin. Togo is a tropical, sub-Saharan nation whose economy depends mostly on agriculture. The official language is French, but other languages are spoken, particularly those of the Gbe family. 47.8% of the population adhere to Christianity, making it the largest religion in the country.

Togo is a member of the United Nations, African Union, Organisation of Islamic Cooperation, South Atlantic Peace and Cooperation Zone, Francophonie, Commonwealth of Nations, and Economic Community of West African States.

In 2020, Togo pursued reforms aimed at enhancing economic development and encouraging the business environment. The Government of Togo launched a new roadmap for 2020-2025 to engage better with the community and private sector in support of the National Development Plan (PND). The country also has taken steps towards greater industrialization with PIA (Industrial Platform of Adetikope), an industrial zone focused on textile production, agriculture processing, mineral resources, and logistics. Since 2018, Togo has raised its ranking in the “World Bank’s Doing Business” report. Today, the country is ranked on 97th position, the highest ranking in entire West Africa. With agriculture as its core engine of economic growth, Togo has become the top exporter of organic products to Europe in the Economic Community of West African States (ECOWAS), and second in Africa followed by Egypt. The export volume of these organic products (like soybeans, pineapples, and cassava) has doubled from 22,000 tons in 2018 to 45,000 in 2019. The Government of Togo implemented various business reforms and completed large infrastructure projects over the last five years to attract overseas investment. Togo has already expanded and modernized the Port of Lomé, increased agricultural production through Agropoles, and enhanced manufacturing processes. Another goal is to improve social development, including the electrification of the country. In 2017, the country received a credit facility of $238 million from the IMF which further increased to $4.76 billion. The country relies on various resources like agriculture, minerals, textile, and cotton industries.

ADVANTAGES

Strategic Location and Market Access

• Regional Gateway: Situated on the Gulf of Guinea, Togo serves as a major trade and logistics hub for West Africa. Its capital, Lomé, is connected by international highways to landlocked countries like Mali, Niger, and Burkina Faso.

• Deep-Water Port: The Port of Lomé is one of West Africa's few natural deep-water ports and is a key entry point for goods, with an efficient 48-hour ship turnaround time.

• Access to Large Markets: As a member of the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA), businesses in Togo gain access to a combined regional market of over 300 million consumers.

• International Trade Preferences: Togo has duty-free and quota-free access to markets in the EU and USA through trade agreements like the African Growth and Opportunity Act (AGOA).

Favourable Business Environment and Incentives

• Government Reforms: Togo has implemented significant reforms to attract foreign investment, leading to a dramatic improvement in its World Bank Ease of Doing Business ranking in recent years. This includes a single-window system (one-stop shop) that allows businesses to be set up in just a few days.

• Investment Incentives: The government offers attractive incentives for investors, such as tax and customs exemptions within the Export Processing Zones (EPZ) and reduced income and salary taxes for up to five years for qualifying investments.

• Stable Legal Framework: Togo's adherence to the Organization for the Harmonization of Business Law in Africa (OHADA) provides a harmonized and reliable legal framework for commercial activities, offering protection for private property and a mechanism for dispute resolution.

• Political Stability: Togo has maintained relative political stability, which provides a more predictable environment for investors compared to some other nations in the region.

Economic Potential and Resources

• Key Sectors: Significant opportunities exist in logistics, agriculture and agro-processing (cotton, soybeans, cashew nuts), mining (phosphates, limestone), infrastructure, and renewable energy.

• Young Workforce: Togo has a large, young, and growing population, with a significant portion under the age of 25, providing a large pool of potential workers.

• Growing Economy: The country has experienced steady economic growth, with a focus on sustainable development and diversification.

TAX REGIME

For Businesses (Corporate & Small)

  • Corporate Income Tax (CIT): A standard 27% on net profits for larger companies.
  • Taxe Professionnelle Unique (TPU) (Simplified Regime): For small businesses (turnover up to 60M XOF).
  • Below 30M XOF: Fixed annual fee.
  • 30M – 60M XOF: 2% (trade/production) or 8% (services) of turnover.

For Individuals (Personal Income Tax - PIT)

  • Residents: Taxed on worldwide income; progressive rates.
  • Non-Residents: Taxed on Togo-source income, or worldwide if resident for 6+ months.
  • Rates: Progressive, from 0.5% to 35%, with a specific formula for income over 15M XOF.

Consumption Taxes

  • Value Added Tax (VAT): Standard rate is 18%, but reduced rates (e.g., 10%) apply to hospitality, catering, and tourism services; some services (financial, medical, transport, agriculture) are exempt.
  • Excise Duties: Levied on tobacco (50%), spirits (50%), beer (18%), soft drinks (5%), oils (1%), etc.
  • Fuel Tax: Varies by fuel type.

Social Security

  • Employer Contribution: 17.5% of gross monthly salary.
  • Employee Contribution: 4% of gross remuneration.

TOGO COMPANIES

Common Business Entities in Togo:

    • Société à Responsabilité Limitée (SARL) – Limited Liability Company: The most popular choice, requiring at least one director/shareholder (can be the same person, foreign, non-resident) and a minimum capital (around XOF 1 million or ~$1,800 USD).
    • Société Anonyme (SA) – Public Limited Company/Corporation: Suitable for larger investments, requiring more capital (e.g., XOF 10 million) and potentially a board of directors if over three shareholders.
    • Sole Proprietorship (Entreprise Individuelle): For single individuals, with fewer formalities but potential operational limitations.

Partnerships:

  • Société en Commandite Simple (SCS) – Limited Partnership: Includes partners with limited liability and general partners with unlimited liability; no minimum capital.
  • Société en Nom Collectif (SNC) – General Partnership: Partners have joint and unlimited liability; no minimum capital.

Branch Office (Succursale):

For foreign companies establishing a presence, allowing them to conduct business directly.

Representative Office (Bureau de Représentation):

For foreign companies, typically limited to market research and liaison activities.

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About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

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