Types of companies that can be set up in Burundi

Burundi is a country located in the East African region, which may not be the first option that comes to mind when considering starting a company. However, Burundi also has certain advantages to attract investors. With its strategic geographical location and abundant natural resources, setting up a company in Burundi not only gives you access to a growing market but also contributes to the economic growth of the region. Viet An Law would like to provide you with some information about the types of companies that can be established in Burundi through the article below.

Types of companies that can be set up in Burundi

A Limited Liability (Partnership with Limited Liability)

A Limited Liability (Partnership with Limited Liability), commonly known by the abbreviation SPRL or SARL in Burundi, is the most popular type of business for both domestic and foreign investors. This preference comes from a balance between flexibility, the ability to raise capital, and the level of protection of personal assets for members. The outstanding features of a Limited Company in Burundi are as follows:

• Number of Members: To set up a Limited Liability Company, you need a minimum of 2 members. However, there is a special exception: if the company is incorporated as a subsidiary of another company, then only 1 member is eligible. This regulation facilitates large corporations or businesses that want to expand their operations to Burundi without finding additional local partners initially.
• Limited Liability: The members of the company are only liable to the extent of their capital contribution to the company. This means that their personal assets will be protected from the company’s debts or financial obligations. In the event that the company goes into trouble or goes bankrupt, the creditor can only claim payment within the company’s asset limits.
• Charter capital: The minimum charter capital requirement is quite low at 1 USD. This capital level is intended to encourage and facilitate investors, especially small and medium-sized enterprises, to participate in the Burundi market. However, despite the low minimum requirements, contributing an appropriate amount of capital to the size and line of business is still essential to ensure effective operations.
• Management Requirements: To ensure proper operation and management, a Limited Company in Burundi needs to have at least one director and one shareholder. It is important that the nationality of directors and shareholders is not restricted, i.e. both Burundians and foreigners can hold these positions.

A Joint Stock Company

A Joint Stock Company (SA) is a type of business that is reserved for larger enterprises, especially those that need to raise capital from many investors and wish to be listed on the stock market in the future. This type is suitable for large-scale projects, which require significant capital and a more complex management structure. The main characteristics of a Joint Stock Company in Burundi include:

• Number of shareholders: To establish a Joint Stock Company, a minimum of 3 shareholders is required. Each shareholder owns a certain number of shares, representing their capital contribution and interests in the company.
• Limited liability: Similar to a limited liability company, the shareholders of a joint stock company are only liable to the extent of their contributed capital to the company.
• Charter capital: Minimum charter capital requirement of 100,000 USD. Charter capital can be divided into many shares with a certain par value, and the sale of these shares is how the company raises capital from the public or institutional investors.
• Share Transferability: One of the major advantages of a Joint Stock Company is the ability to transfer shares relatively easily. This makes it possible for investors to buy and sell shares, increasing the liquidity of their investment, and attracting more investors.

Other types that can be set up in Burundi