How SMEs can register a business in Togo

If you have started selling clothes, repairing phones, running a small shop or offering a service in Togo, there comes a point when you may need to put the business on paper. Togo has a single point for this: the Centre de Formalités des Entreprises (CFE). The CFE handles the main registrations needed to create a business. Instead of registering separately for commercial, tax and social security purposes, the entrepreneur can deal with these through the same process. But before going to the CFE, there is one decision to make.

Are you registering yourself or a company?

If you are running the business alone, you can register an individual enterprise. You will need an identity document or passport, a passport photograph, a declaration concerning criminal convictions and a plan showing where the business operates. For Togolese nationals and citizens of ECOWAS countries, the government lists the fee at 25,400 CFA francs. Applicants from outside ECOWAS pay 30,400 CFA francs and need a residence permit. If you are starting the business with partners, you can register a company instead. The government lists the fee for company registration at 28,250 CFA francs for Togolese and ECOWAS applicants and 33,250 CFA francs for applicants from outside ECOWAS. A company application also requires documents such as the company's statutes, identification documents for the people involved, photographs and information about the company's location.

The CFE puts the registrations together

One reason the process is relatively straightforward is that the entrepreneur does not have to start by visiting several institutions. The CFE handles the main business creation formalities and issues a business creation card once the registration goes through. The card contains the business's RCCM commercial registration number, NIF tax identification number and CNSS social security number. The CFE also has an online service where entrepreneurs can submit their applications. The registration fees can be paid using TMoney, Flooz, Mastercard or Visa.

Have the location sorted out

One detail that can catch a new business owner is the business location. The application requires information about where the business operates. That means an entrepreneur should have the relevant location documents ready rather than trying to sort them out during the registration. For a company, the CFE also asks for information relating to the company's premises. This becomes particularly relevant for businesses such as shops, workshops and other operations that work from a physical location.

Registration does not give you every permit

Getting the business creation card does not mean an SME can automatically carry out any activity it wants. Some businesses need additional licences or approvals. That can apply to regulated industries and businesses involved in importing certain products. So the registration process should start with a clear description of what the business will actually do. The requirements for a small clothing retailer will not be the same as those for a company working in a regulated industry.

What happens when the business starts hiring?

The owner's responsibilities also change once the business employs people. Togo's Caisse Nationale de Sécurité Sociale (CNSS) requires employers to register. The government says an employer should apply within eight days of opening or acquiring a business with employees, or within eight days of hiring the first employee. For someone starting alone, this may not come into play immediately. But it becomes another requirement once the business starts building a team.

What should an entrepreneur budget for?

The registration itself is not the largest expense for most businesses. For a Togolese or ECOWAS entrepreneur, the official fee is 25,400 CFA francs for an individual enterprise and 28,250 CFA francs for a company. After that, the costs depend on the business. There may be rent, stock, equipment, employees, licences and other operating costs. So the registration fee is only the amount needed to get the business formally registered. It is not the cost of starting the business itself. For an SME owner in Togo, the route is fairly clear: decide whether you need an individual enterprise or a company, prepare the documents, apply through the CFE and get the business creation card. The next step depends on what the business actually does and whether it needs additional licences before it can start trading.