Company Formation in the Gambia

Before deciding to set up a new company in the Gambia, read the information below to understand the characteristics of a Private Liability Company (PLC):

Shareholders: at least one shareholder (can be any nationality and can reside anywhere in the world).

Director: at least one director (can be any nationality and can reside anywhere in the world).

Secretary: companies must designate a secretary, who need not necessarily be an employee. Note that a sole director or an employee of a corporation who is a sole director cannot act as a secretary.

Auditor: еach company must engage an auditor who must either be a member of a United Kingdom Accounting body recognised by the Ministry of Finance and Economic Affairs or approved by the Minister. The auditor must not be directly affiliated with the company, ensuring independence in financial scrutiny.

Minimum share capital: no restriction is placed on the minimum or maximum share capital of a company.

Legal address: every company must maintain a registered office in The Gambia, serving as the official address for all communications and notices.

Liability: the liability of members is limited to the extent of their contribution to the capital.

Accounting: сompanies can adopt various accounting systems, provided they offer an accurate and fair view of the finances. If these books are kept within The Gambia, returns disclosing the business’s financial position must be submitted to the Registrar General every six months.

CIT is a tax charged on the earnings of companies, partnerships, or bodies of trust. This could be based on the turnover or chargeable income.

All companies, partnerships or bodies of trust operating in The Gambia are liable to pay CIT. Those incorporated and or controlled in the country are resident companies and are therefore liable to pay CIT on all incomes. Non-resident companies, partnerships or bodies of trust are liable to pay tax only on The Gambian-sourced income.

The CIT rate is the higher of 27% of net profit, or 1% of turnover on audited accounts (or 2% of turnover for unaudited accounts).

PIT is tax charged on the earnings of individuals and their businesses other than companies and partnerships. This could be based on the turnover or net profits.

All individuals engaged in economic or income generating activities in The Gambia are required to be registered and pay PIT. The PIT rate is 30%.

VAT is a consumption tax levied on taxable supplies of goods and services in The Gambia and on goods imported. It is not a tax on profits.

All consumers of taxable goods and services in The Gambia are liable to pay VAT. Equally all importers of taxable goods or services are liable to pay VAT.

The standard VAT rate is 15%. This rate is applied to all goods and services unless they are specifically exempted. 0% is applied to exports of goods and services.

All businesses with taxable supplies of at least D2, 000, 000 (~€26,300) in a tax year are required to compulsorily register and charge VAT. In addition, businesses with taxable supplies of D1, 000, 000 (~€13,150) and above in a tax year may voluntarily register.

Double taxation avoidance agreements in The Gambia: ‍United Kingdom, France, Norway, Morocco, Nigeria, Saudi Arabia.