Ivory Coast: New measures to promote enterprise creation and property transfer
Antoine Luntadila Kibanga
Doing Business 2013 Report titled: « Smart Regulations for small and medium enterprises » celebrates the 10th series of the World Bank Doing Business. Over the last decade, these reports listed about 2,000 business regulation reforms implemented in 180 economies. Across the world, local entrepreneurs and investors have considerably benefited from such reforms.
In this regard, on Wednesday, April 24, 2013, the Ivorian Council of Ministers proposed an Order aimed at reducing the fees related to starting a business for companies for which capital does not exceed FCFA 1,000,000. This measure reflects the Council of Ministers’ commitment to the business climate more attractive in Côte-d’Ivoire and to improve its ranking in the Doing Business report.
The Doing Business 2013 Report ranks Côte-d’Ivoire 176 while in 2012 the country was ranked 173 with regards to Starting a business, thus losing 3 places compared to last year. Through this action, the Ivory Coast Government wants to express its strong commitment to improve the business environment in the Ivory Coast as well as its ranking in the Doing Business report.
The proposed Order is planning to cancel the FCFA 18,000 registration fees, the FCFA 5,000 stamp fee as well as the payment of the FCFA 5,000 research rights. However, such proposal maintains the ad valorem duty which accounts for 0.3% of the capital of the company under creation.
Côte-d’Ivoire remains at the bottom of the list of countries that have to improve their Starting a business reforms despite all its current efforts, namely new incentive tax measures, the implementation of the single window for investors, and the establishment of the Investment Promotion Centre created by Decree No. 2012-867 of September 6, 2012. This measure reaffirms the Government’s willingness to render the business climate more competitive in Ivory Coast by namely easing the proceedings and reducing the costs related to the creation of companies.
In the same token, the Ivory Government passed another measure to promote commercial transactions.
Actually, this other proposed Order concerns the transfer of property. This proposal reduces the registration rate on property transfer from 10% to 7%. Therefore, this measure abolishes the income tax clearance required from the seller on all of its assets, which is replaced by one discharge on the sole transferrable asset.
“Despite adopted incentive tax measures, our country is still among the States in which to create an enterprise and to transfer property is always subjected to tax charges relatively higher. Therefore, these two orders shall improve this situation by alleviating the tax weights and procedures on real estate transfer operations and enterprise creation. Thus, the Government wants to improve both the business environment and its rank in Doing Business”.
In conclusion, these two proposed orders will contribute to improve the business environment and to enable Côte-d’Ivoire to fare better in the next Doing Business Report. They shall be signed and enacted by the President of Republic in the forthcoming days.
Extract from the Council of Ministers held on April 24, 2013.