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Burkina Faso offers new opportunities for companies looking to enter the ECOWAS market. With over 22 million people and a central location in West Africa, Burkina Faso attracts foreign businesses in agriculture, gold mining, and services.
From company registration to compliance, tax, and hiring, this article explains the main requirements for doing business in Burkina Faso. Employers will understand the steps needed to enter and operate in the market.
Foreign businesses planning to establish in Burkina Faso need to carefully select the right setup option. Your choice will determine startup costs, compliance duties, and how fast you can begin operations. Below are the main options available to foreign companies entering the Burkinabè market:
The SARL is the most common structure for small to medium-sized businesses. It requires at least one shareholder and one director of any nationality. Minimum share capital is about 1 million CFA francs (~$1,600 USD), though higher amounts may be needed for certain sectors. Shareholders’ liability is limited to their contributions, protecting personal assets. The SARL offers flexibility in management and ownership, making it ideal for companies testing the Burkina Faso market.
The SA is ideal for larger businesses or those planning major operations. It requires at least two shareholders, or seven if publicly listed and three directors, with a minimum share capital of 10 million CFA francs (~$16,000 USD). This structure has more credibility with banks and partners, and is suitable for substantial investments.
Foreign companies can open a branch office to operate in Burkina Faso without creating a separate entity. The parent company retains full liability. Branches are simpler to establish but provide less protection and may have operational limitations.
Individual entrepreneurs can register as sole proprietors for small-scale activities. It requires minimal capital but offers no separation between personal and business assets. This structure is suitable for freelancers or small traders, but less ideal for significant foreign investment.
An EOR allows businesses to hire local staff without registering a company in Burkina Faso. The provider becomes the official employer, managing payroll, taxes, benefits, and legal compliance. This lets companies quickly establish a team, focus on operations, and reduce the cost and complexity of setting up a local entity.
Setting up a company in Burkina Faso is done through the Centre de Formalités des Entreprises (CEFORE), a one-stop service that coordinates with tax authorities, social security, and the commercial registry. CEFORE has eight centers nationwide, including Ouagadougou, Bobo-Dioulasso, Ouahigouya, Tenkodogo, Koudougou, Fada N’Gourma, Kaya, Dedougou, and Gaoua.
Key requirements include:
All documents must be properly translated into French. The registration process typically takes one to three weeks and involves reserving a company name, preparing documents, submitting the application to CEFORE, and completing tax and social security registration. Total costs generally range from $2,000 to $5,000.
To operate in Burkina Faso, businesses must follow the Labour Code, overseen by the Ministry of Public Service, Labor, and Social Protection. Compliance ensures smooth operations and protects both employers and employees.
All employment should be formalized with written contracts in French, detailing job title, duties, compensation, benefits, working hours, location, contract length, and termination terms. This helps to avoid disputes, even though oral agreements are legally valid. Fixed-term contracts must also be in writing and adhere to limits on duration and renewals to prevent abuse of temporary arrangements.
The standard workweek in Burkina Faso is 40 hours, typically spread over five days. Overtime, weekend, and holiday work require additional pay, and employees are entitled to daily and weekly rest periods to protect their health and wellbeing. The minimum wage is 45,000 CFA francs (approximately $72) per month and must be paid regularly in the local currency.
Employers must also provide statutory benefits, including annual leave (15 days), public holidays, maternity and sick leave, and other social security benefits. Employers contribute around 16% of gross salary to CNSS, while employees contribute about 5.5%.
The standard notice period for a dismissal depends on the role. Employers must give a notice of eight days for daily workers, one month for monthly-paid staff, and three months for executives. Employees guilty of serious misconduct may lose severance, but proper documentation and procedures are essential.
Companies operating in Burkina Faso pay corporate income tax on profits earned locally. The standard rate is 27.5%, though certain sectors may qualify for incentives. Annual tax returns are due within four months of the fiscal year end, with quarterly provisional payments based on the previous year’s liability.
Most goods and services are subject to VAT at 18%, with a reduced 10% rate for hotel and catering services. Businesses with annual turnover above 50 million CFA francs (~$80,000) must register for VAT, though smaller businesses can do so voluntarily. VAT is reported monthly, with payments due by the 15th of the following month. Input VAT on business expenses can be reclaimed. Some goods and services, such as basic food, education, and medical supplies, are exempt.
Payments to residents and non-residents may attract withholding tax. Dividends are taxed at 12.5%, interest at 12.5% or 25% depending on the type, and royalties at 20% for non-residents. Service fees to foreign companies generally face 5–20% withholding. Burkina Faso has double taxation treaties with countries including France and Tunisia, which can reduce these rates.
Employers must contribute to social security at roughly 16% of gross salary, while employees contribute about 5.5%. Contributions cover pensions, disability, family allowances, and workplace injury benefits. Employers must ensure timely registration and remittance to CNSS every month to avoid penalties.
To employ foreign workers in Burkina Faso, companies must obtain a valid work permit from the Ministry of Labor. Permits are issued for a fixed period and can be renewed if needed.
Employers must demonstrate that the position cannot be filled by a qualified Burkinabè candidate and provide details such as job description, qualifications, and proof of the employee’s experience. Once the work permit is approved, the foreign employee must apply for a residence permit to live and work legally in the country.
The process can take several weeks, so it is important to plan. Foreign employees must also be registered with the National Social Security Fund (CNSS) to ensure contributions to pensions and social benefits are properly managed.
When setting up in Burkina Faso, here are important factors every business should consider:
Ouagadougou is the main business hub, with Bobo-Dioulasso as the secondary economic center. Office space is usually leased, so check the lease agreement carefully. A formal lease agreement should clearly specify terms, duration, and responsibilities.
Power outages, unreliable internet, and uneven roads are common in Burkina Faso. Businesses should plan for backup systems, storage, and transport solutions to maintain smooth operations.
Conditions vary by region. The U.S. State Department and other foreign ministry travel advisories provide current information. Companies should conduct thorough risk assessments, implement appropriate security measures, and maintain continuous awareness. Insurance coverage for property, personnel, and transport is also recommended.
Local lawyers, accountants, and consultants can help with regulations, taxes, and business practices. Partnering with experienced providers simplifies operations.
Burkina Faso’s business activity is mainly concentrated in these key cities:
Your choice of location will depend on your business needs, with Ouagadougou providing the strongest infrastructure and access, while secondary cities offer opportunities in regional markets.
Burkina Faso is an entry point to West Africa’s growing market. The country offers opportunities, but also comes with challenges such as regulation and infrastructure.
For companies not ready to set up a local entity, an Employer of Record (EOR) makes hiring and compliance easier. With the right provider, you can build a team quickly while focusing on business growth.
The best EOR for you will depend on your specific needs and expansion plans. We recommend checking our guide on the Best EOR Providers in Burkina Faso to explore your options fully.
