Lex Africa Guide 2012 Full - Afrer.org

NIGERJOHN FFOOKS & CO PROJECT FINANCE AND NATURALRESOURCES ADVISORY FIRMFirm InformationWebsite address: www.jwflegal.comLanguages spoken: English, Malagasy, FrenchContacts: John Ffooks and Richard GlassTelephone: +261 20 224 3247Fax: +261 20 224 3248Email: niger@jwflegal.comCountry InformationThe Hausa people extending across the Nigerian border form thelargest cultural group, accounting for more than half of Niger’spredominantly Islamic population of 16 468 886. The closelyrelated Sangria and Zarma (or Derma), concentrated along theNiger River, account for about a quarter of the population.Political SystemA President is elected for a 5-year term and a bicameral NationalAssembly with one 83-seat chamber is elected by popular votefor five years.Latest GDP Figures (2010 estimates)GDP:U$5.886 billionGDP per capita:US$604GDP (PPP):US$14.45 billionGDP per capita (PPP): US$760.945.Inflation Rate3,1% (2011 estimates).Investment ClimateThere are no local ownership requirements. Investors areencouraged to invest mainly in the well-developed miningsector. Coal and uranium are important. The Investment Codeprotects investors from expropriation of their assets if not in thepublic interest. There are investment opportunities in energyproduction, mineral exploration, agriculture, food processing,housing, construction, hotels and transportation.Forms of BusinessThe most popular forms of business for local and foreigninvestors are:A société anonyme (SA) which is a limited liability companyadministered by a board of directors or a shareholder. Theminimum share capital required is at least CFA 10 000 000(approx. US$20 000).A société à responsabilité limitée (SARL) which isadministered by one or more directors called ”gérants”. Theminimum share capital required is atl e a s tC F A1 000 000 (approx. US$2 000).Joint ventures are common in themining sector.60Formation of a CompanyThe procedures and estimated times to incorporate a companyare as follows:Notarize the company statutes (5 days);Deposit the initial capital in a bank and obtain a receipt(one day);Register company statutes (1 day);File documents with the Commercial Registry at the Greffedu Tribunal (RCCM) (2 days);Publish the company formation notice (1 day);Register with the tax authority representatives at RCCM (5days);Obtain confirmation that directors do not have criminalrecords (1 day).Register with the Caisse Nationale de Sécurité Sociale(CNSS) (1 day).Register with the Agence Nationale pour la Promotion del’Emploi (1 day).Exchange ControlsThe Exchange Code of the West African Economic and MonetaryUnion (WAEMU/UEMOA) applies to Niger. There are norestrictions on payments and transfers. Niger’s currency is fullyconvertible into other currencies specified by the regulations.Dividends, interest, loans and fees are frequently transferred viaFrench banks.TaxationThe following taxes are required to be paid annually:Corporate income tax: 30%Social security tax: 15.4%Business license (fixed rate and proportional duty). Totaltax rate is 3.5 %.Apprenticeship tax: 2%Real estate tax: 1.5 %Capital gains tax: 15%Insurance tax: from 12% to 36%Tax on interest, if any: 15%Value Added Tax: 19%Stamp duty on contracts: CFA franc 1 500.Import/ExportFoodstuffs, machinery, vehicles and parts, petroleum andcereals are the major items imported by Niger. Niger is thesecond largest uranium producer in the world and exports of thismineral contribute about 40% of export revenues. Foreignexchange earnings from livestock are also significant. Japan,Nigeria and France are the three major export destinations forNiger’s products.Monetary PolicyMonetary policy is regulated by the Central Bank of West AfricanStates (BCEAO) and aims at preserving CFA franc-euro parity andcontrolling inflation. The monetary policies implemented in theregion follow those of the European Central Bank.Legal SystemNiger's legal system is based largely on French civil law. The HighCourt of Justice has jurisdiction to try the President andmembers of the Government for crimes or offences committedin performance of their official duties. Defendants andprosecutors may appeal judgments of lower courts, first to theCourt of Appeals and then to the Supreme Court, which is thehighest court of appeal. The Constitutional Court has jurisdictionover electoral matters, the constitutionality of laws andcompliance with international treaties and agreements.