Business in Burkina Faso

Burkina Faso’s business environment is strongly informal. According to the 2024 General Enterprise Census (RGE 2024), only 3.5% of the 389,172 recorded economic units had formal status. 91.4% did not have a Unique Financial Identifier (Identifiant Financier Unique), or IFU, 92% were not registered with the National Social Security Fund (Caisse Nationale de Sécurité Sociale), or CNSS, and 96.5% kept no formal accounts. 80.4% operated in services; trade accounted for 52.7%, manufacturing for 17.9%, and accommodation and food services for 13.4%. The units were concentrated mainly in Centre at 46.8%, Hauts-Bassins at 18%, Ouagadougou at 41.3%, and Bobo-Dioulasso at 14.4%. Practical development is therefore particularly relevant to the transition from informal to formal activity, trade, crafts, agricultural processing, and services. Before starting, the business idea, target market, location, business plan, financing, and sector-specific permits should be reviewed. An informal start may be common in practice, but it does not replace checking formal obligations. Certain activities, such as gold and precious-metal trading, mining supply, water and food production, pesticides, imports and exports, petroleum, tourism, or construction, require a special permit or authorization before operations begin. The Business Formalities Centre (Centre de Formalités des Entreprises), known as CEFORE, serves as the central contact point for formal registration. The Burkina Faso Enterprise House (Maison de l’Entreprise du Burkina Faso), known as MEBF, also provides information, legal and tax sessions, regional training, management advice, business-plan coaching, and financing referrals. Registration documents typically lead to entry in the Trade and Movable Property Credit Register (Registre du Commerce et du Crédit Mobilier), known as RCCM, tax existence and an IFU, and registration with CNSS. Natural-person traders generally also need a Professional Trader Card (Carte Professionnelle de Commerçant), known as CPC. Applications can be submitted online seven days a week, around the clock; documents are also issued at regional MEBF offices. For an individual, the current CEFORE website states a minimum age of over 20. Under OHADA law (OHADA), the person must have the required legal capacity and is generally liable without limitation with their personal assets. Access is open to Burkinabè nationals and persons lawfully residing in the country. Companies with separate legal personality can, among other forms, be established as SARL, SA, SAS, SNC, SCS, or GIE. Depending on the legal form, the required documents include a registered office in Burkina Faso, articles of association, incorporation minutes, where applicable proof of capital under OHADA law, identity documents, a criminal-record or good-conduct certificate, proof of business premises, Form M0, and tax location details. Foreign natural or legal persons generally need prior authorization for commercial activity (AEC); the current government information page states no fee but gives a variable processing time. A simplified alternative is the Entreprenant status (Entreprenant). It covers one professional, civil-law, commercial, craft, or agricultural activity and requires a simple activity declaration instead of RCCM registration. Bookkeeping is simplified. If state or OHADA thresholds are exceeded in two consecutive financial years, the business must move to the appropriate formal legal form. Changes to the activity or location, as well as termination, are generally declared free of charge for an Entreprenant. Fees and processing times are not currently published consistently. The current government page states 47,500 FCFA and 24 to 48 hours for a legal entity. MEBF states 47,380 FCFA for a natural person and 65,540 FCFA for a legal entity without CPC or 83,430 FCFA with CPC. A general government page states variable costs and three to 14 working days for natural persons. The actual information should therefore be checked directly with CEFORE or MEBF and against the complete documentation. During operations, RCCM data, the activity, and the business address must remain current. The General Directorate of Taxes (Direction Générale des Impôts) requires tax filings and use of the IFU. OHADA law determines accounting requirements; commercial businesses keep business books and generally prepare annual financial statements. An Entreprenant records income and uses daily and, where required, maintains a purchase register and keeps the documents for at least five years. Once employees are hired, the employer must comply with CNSS registration and contribution filings. The total contribution is 21.5% of contributory earnings: 16% is paid by the employer and 5.5% by the employee. The monthly contribution base is capped at 800,000 FCFA. Employers with at least 20 employees file and pay monthly; smaller employers generally do so quarterly. The deadline is 15 days after the end of the month or 30 days after the end of the quarter. Small and medium-sized enterprises may apply for a small and medium-sized enterprise status certificate (PME status). Tax and customs benefits under Law 010-2023/ALT depend on requirements, scope, duration, and sector and do not arise automatically from RCCM registration. MEBF offers advisory packages ranging from free start-up support to paid packages costing between 150,000 and 550,000 FCFA; services and access depend on the relevant program. Women and rural businesses can access, among other things, functional support through CIFEA and MEBF, as well as programs for fish processing in Bagré and grain and cassava processing in Tenkodogo. Participation and access depend on the relevant calls for applications. Formal registration improves administrative traceability and may facilitate access to PME support, public procurement, exports, and financing. Access to finance nevertheless remains difficult. A World Bank survey showed that in 2016 only 6% of informal micro, small, and medium-sized enterprises had a bank or microfinance loan; this historical figure describes a structural barrier, not a current rate. When buying or leasing a business, OHADA law requires the contract details, buyer or tenant, and RCCM references to be recorded. RCCM, IFU, CNSS, permits, the lease, debts, security interests, and financial records must then be checked, and the changes registered. Relocating the registered office or a branch, as well as changing the activity, also requires amendment formalities. For the voluntary termination of an activity by a natural person, the application for deletion must be filed within one month. When a natural person dies, the heirs must arrange a deletion or amendment within three months. For a company, dissolution, publication, amendment in the RCCM, and liquidation by a liquidator follow until closure is published. In cases of payment difficulties, OHADA procedures for collective proceedings and debt recovery apply; qualified local legal or accounting advice is advisable.