In establishing a business in Guinea, a foreign investor may choose from several business forms authorized by the Code of Economic Activities. The most commonly used are the public limited liability company, or corporation (société anonyme); and the private liability company (société à responsibilité limitée). Others include sole proprietorships, partnershipe, and branch operations.
General commercial law is contained in the 1987 Investment Code which deals with the following:
A set of new accounting rules adopted in 1987 reflects the French accounting system. A modern land tenure system, making it easier for Guineans and foreign investors to acquire land rights, was adopted in 1992, although enforcement of contractura1 rights still depends on the developing judicial system.
Applications for incentive benefits under the Guinean Investment Code must be approved by the Minister of Finance in consultation with the Minister in whose technical jurisdiction the project falls. In the past, tax exempt regimes have been heavily abused, and conventions signed by many ministers. In 1994, in an effort to rationalize tax collection procedures, the government annulled more than 100 such illegitimate conventions and applied retroactive taxes. Although the Ministry of Planning houses a National Investment Commission (NIC), they are vested with no authority to implement or evaluate the Investment Code.
To qualify for one of the privileged regimes outlined above, an investor's application must include technical descriptions of facilities, equipment, processes, and goods/services to be produced, availability and cost of local and imported inputs, capital requirements, financia1 projections, and employment, salary, and ownership structure. Investors are required to submit annually statements of account, lists of employees and salaries, lists of equipment in use and accumulated depreciation, and information on continued compliance with conditions of eligibility for incentive treatment.
Guinea ratified in November 1986 the Convention on the Settlement of Disputes between States and Nationals of other States. Alternatively, disputes can be settled in accordance with the procedures of the Administrative Council of the Internationa1 Center for the Settlement of Investment Disputes (ICSID), approved in September 197B, Guinea and the United States have an agreement on private investment guarantees through the Overseas Private Investment Corporation (OPIC) which took effect on May 9, 1962. Fair settlements on minor, loca1 disputes to be treated by the Ouinean judicial system are difficult to obtain.
| |
|
Contact : info@webguine.site
webGuinée, Camp Boiro Memorial, webAfriqa © 1997-2014 Afriq Access & Tierno S. Bah. All rights reserved.