Once you decide to expand across borders and into Sierra Leone, you need to prepare to either establish a subsidiary or partner with an Employer of Record (EOR) like G-P. Choosing to set up a Sierra Leone subsidiary involves many moving parts. You could spend weeks or months setting up your subsidiary before you’re ready to hire employees, add them to your payroll, and give out compensation and benefits. However, you won’t have to set up a Sierra Leone subsidiary when you work with us.
How to set up a Sierra Leone subsidiary
If you decide to set up a Sierra Leone subsidiary, you need to start by discussing your company’s goals. We suggest choosing a physical location for your office first. Different regions in Sierra Leone can operate under separate laws and regulations, which may make it easier or harder to incorporate in certain areas. Always research your desired location before deciding to officially incorporate there.
You should also discuss your operating goals in the country. Sierra Leone offers several different entities that all have their own laws and restrictions, including a limited liability company (LLC), public limited liability company (PLC), branch, and representative office.
The steps to set up a Sierra Leone subsidiary as an LLC include:
- Preparing a memorandum and articles of association.
- Choosing a company name.
- Submitting statutory declarations.
- Submitting other necessary documents, including members’ and directors’ IDs, statements, and letters of consent.
Sierra Leone subsidiary laws
Sierra Leone’s subsidiary laws vary based on the entity you choose. LLCs require at least 1 shareholder and 1 director who can be of any nationality, either individuals or corporate bodies. They do not have to live in Sierra Leone. The country also eliminated its minimum share capital requirement, so you don’t have to set aside this capital to incorporate.
The Companies Act 2009 and subsequent amendments outline more Sierra Leone subsidiary laws that you need to follow to stay compliant. For example, your memorandum of association needs to be in the right form and get authenticated by each subscriber. Your articles of association should then outline how your company will be run, governed, and owned. It needs to contain the name of your company, your registered office, the nature of your business, and the structure of your subsidiary.
Benefits of setting up a Sierra Leone subsidiary
The biggest benefit of setting up a Sierra Leone subsidiary is that it allows you to operate legally within the country. An LLC also benefits the parent company, as it will have limited liability from the subsidiary and won’t have to worry about any costly litigation. Plus, the subsidiary is free to choose the best way to operate in Sierra Leone that matches the country’s culture and regulations.
Other important considerations
When you’re ready to incorporate in Sierra Leone, we recommend setting aside the time and money you’ll need to make your subsidiary successful. You’ll have to travel back and forth to Sierra Leone multiple times throughout the process. If that travel time doesn’t fit in your schedule, you should appoint another company executive to handle the incorporation process. We also recommend working with your accounting team to determine how much money to set aside for the Sierra Leone subsidiary setup process. That way you won’t be surprised by any unexpected fees.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.