São Tomé and Príncipe, a small island nation in the Gulf of Guinea, is emerging as a jurisdiction with growing potential for business and investment. Known for its political stability, peaceful environment, and strategic location near key African and international markets, the country offers opportunities for businesses seeking a base in a developing yet accessible market.
The government has been working to modernize its legal and regulatory frameworks to attract foreign investment, particularly in sectors like tourism, agriculture, energy, and financial services. Incentives such as tax benefits and simplified business registration processes are part of its efforts to create a favorable investment climate.
São Tomé and Príncipe’s currency, the dobra (pegged to the euro), provides financial stability, while its membership in regional and international organizations facilitates trade and investment partnerships. The country also offers free trade zone opportunities and policies to encourage the development of small and medium enterprises.
While the market is small, São Tomé and Príncipe’s business-friendly reforms and natural resources position it as an appealing jurisdiction for niche industries and long-term investment strategies in Africa.
Legal Opinion about Sao Tome and Principe as a Jurisdiction for Company Formation
Ganna Voievodina
Manimama, CEO
“São Tomé and Príncipe’s political stability, strategic location, and growing focus on investment-friendly reforms make it a compelling jurisdiction for company formation. The country’s modernizing legal framework, tax incentives, and access to international markets through regional partnerships provide a unique opportunity for businesses seeking to establish a presence in Africa. With its peaceful environment and emerging economy, São Tomé and Príncipe is particularly attractive for niche industries and investors with a long-term vision. Manimama is ready to assist you in navigating the registration process, ensuring a smooth and efficient entry into this promising jurisdiction.”
Our Packages
Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.
Company Formation
- Company formation
- Registered address for the 1st year
- Annual accounting requirement bookkeeping
Annual Services
- Company renewal and registered address
- Annual Government Tax
- Mandatory Financial Beneficiary Report
Other Services
- Set of corporate documents (certified/apostille)
- Nominal service for 1 year
- Offshore banking
Key Numbers about Sao Tome and Principe as a Jurisdiction for Company Formation
minimum 1director for a company |
minimum 1shareholder for a company |
up to 3 weektimeline for a company registration |
nominimum share capital |
25%corporate income tax (CIT) rate |
10-25%personal income tax (PIT) rate |
15%value added tax (VAT) |
Set up Your Company in Sao Tome and Principe in Several Steps
Step 1. Initial setup
- Initiating a preliminary project assessment
- Preparation and filing of the package of documents
Step 2. Company registration
- Verificate and reserve of the company name
- Register the Company with the Commercial Registry
- Obtain Taxpayer Identification Number (TIN)
- Obtain the Certificate of incorporation from the Registrar of Companies, Memorandum and Articles of Association
- Open a corporate bank account
Requirements for Company Formation in Sao Tome and Principe
Before deciding to set up a new company, read the information below to understand the characteristics of a Limited Liability Company (LLC):
Shareholders: the company is required to have at least 1 shareholder.
Director: at least one director must be appointed.
Company secretary: there is no mandatory requirement for a company secretary, but appointing one can facilitate compliance and administrative tasks.
Minimum share capital: there is no minimum capital requirement.
Legal address: a registered office in São Tomé and Príncipe is mandatory.
Registered agent: not required.
Liability: the liability of its shareholders is limited to their shareholding in the company.
Accounting: companies are required to maintain proper accounting records, prepare annual financial statements, and comply with tax and regulatory filing obligations.
Taxes in Sao Tome and Principe
The Corporate Income Tax Rate is 25% of taxable profits. However, certain small businesses may qualify for lower rates. Taxpayers generally file and pay CIT annually. Your specific deadlines and the option for installments may depend on the size and nature of your business.
Exemptions and Incentives:
- Tax Holidays: Companies in priority sectors such as tourism, agriculture, and fisheries may qualify for tax holidays of up to five years.
- Investment Incentives: The government offers tax incentives for foreign direct investment (FDI) in infrastructure, renewable energy, and other key sectors, including reduced CIT rates and customs duty exemptions. 25% above SCR 1 million (~€70,000).
All individuals earning income in Sao Tome and Principe are subject to PIT. The country uses a progressive income tax system. PIT is calculated on taxable income, which is determined after deducting allowable personal exemptions and other deductions:
- Up to STN 50,000: 0%
- STN 50,001 to STN 100,000: 10%
- Above STN 100,000: 20%
The standard VAT rate in Sao Tome and Principe is 15%, which applies to most services. However, a reduced rate of 7.5% is applicable to certain basic necessities such as specific food items.
Exemptions: Certain goods and services are exempt from VAT, including basic food items, healthcare services, educational services, and some financial services. Exports are zero-rated, allowing businesses to reclaim VAT on inputs used to produce exported goods.
Start Your Company Formation Process with Manimama
There are numerous reasons why Manimama is the leading company formation agent in Sao Tome and Principe:
Expertise in Regulations of Sao Tome and Principe
- 1. Manimama has an in-depth understanding of Sao Tome and Principe' legal and regulatory framework.
- 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.
Local and International Experience
- 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
- 2. Our expertise spans various industries, providing customized solutions for each client.
Efficient and Timely Service
- 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
- 2. Our efficient processes minimize delays and get your business up and running quickly.
Client-Centric Approach
- 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
- 2. Our dedicated team is always available to address any concerns and provide expert advice.
Robust Network of Local Partners
- 1. We have established strong relationships with local authorities, banks, and service providers.
- 2. This network ensures that your business receives the best possible support and resources.
Ongoing Compliance Support
- 1. We provide continuous support to ensure your business remains compliant with laws of Sao Tome and Principe.
- 2. Our team keeps you updated on any regulatory changes that may impact your company.
Frequently Asked Questions
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What are the advantages of registering a company in Sao Tome and Principe?São Tomé and Príncipe offers tax incentives, no minimum capital requirements, and a strategic location near African markets, making it an investor-friendly jurisdiction.
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How long does it take to register a company in Sao Tome and Principe?It typically takes 2 to 3 weeks to complete the registration process.
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What are the main steps to register a company in Sao Tome and Principe?The process includes selecting a company name, preparing incorporation documents, registering with the Commercial Registry, obtaining a Taxpayer Identification Number (TIN), opening a corporate bank account, and acquiring necessary licenses.
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Is there a minimum capital requirement for a Limited Liability Company?No, there is no statutory minimum share capital for most types of businesses.
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Do Limited Liability Companies need to have a local director?No, there is no requirement for a local director; directors can be of any nationality.
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Are there any residency requirements for shareholders?No, shareholders can reside anywhere and do not need to be residents of São Tomé and Príncipe.
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What are the tax obligations of a Limited Liability Company in Sao Tome and Principe?LLCs must pay corporate income tax (25%), file annual tax returns, and comply with VAT (15%) and withholding tax obligations, where applicable.
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Can a foreigner own 100% of a company in Sao Tome and Principe?Yes, foreigners are allowed to own 100% of a company in São Tomé and Príncipe.
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Do I need a registered office in Sao Tome and Principe?Yes, all companies must have a registered office address within São Tomé and Príncipe.
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Is it necessary to visit Sao Tome and Principe to register a Limited Liability Company?No, the process can be completed remotely with the help of a local representative or service provider.
Client Feedbacks
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Manimama as the Best Solution for Your Company Formation in Sao Tome and Principe
By choosing our company formation service in Rwanda, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Rwanda and pave the way for your business success.
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