Since 2014, the Ivorian government is engaged in the promotion of small and medium size businesses through incentive, supportive, protective and development measures.
As a result, the law N°2014-140 of March 24 2014 has defined the legal and institutional status to implement the new government policies for SMB. In February 2016, a new decree has clarified the modality to qualify for small and medium size company status.
1- Notion of SMB
The following eligibility requirements must be met to be considered as small and medium size business:
- Legal and financial independence: to be recognized as a small and medium company, your entity shall not be dependent of a foreign entity, which is different from being a legal subsidiary.
- Legal creation completed: your company shall be registered to « Registre de Commerce et du Crédit Mobilier » or « Registre des Métiers » and have its tax identification number.
- Accurate accounting: your company shall respect legal provisions concerning accountancy.
- Company size: There are three types of small and medium size company
- Micro company : less than ten (10) employees and a maximum turnover of thirty millions (30 000 000) CFA before taxes ;
- Small company : less than (50) employees and a maximum turnover of one hundred and fifty millions (150 000 000) CFA before taxes ;
- Medium company: less than two hundred employees (200) and a maximum turnover of one billion (1 000 000 000) CFA.
2- Small and Medium Size Business status
• Qualification process
Any company willing to obtain this status must submit the following documents to the Minister in charge of Small and Medium Companies:
- Legal registration to « Registre de Commerce » or « Registre des Métiers » ;
- Tax Registration ;
- Certified financial statement of the previous year;
- Labour office certificate with the number of employees ;
- Legal statutes (if any);
- - Executive Identification Card.
A receipt will be issued upon submission of all documents.
SMB status certificate is delivered after fifteen (15) days and must be renewed every two (02) years.
If a modification leads to a change of status for a minimum of two (02) consecutive years, the company shall go through a new qualification process for SMB.
• Loss of status
In some situation, Small and Medium size status can be lost:
- Frauds ;
- Certificate expiration without renewal;
- Company liquidation;
- Infringement of legal obligations.
Issuance of such certificate will allow SMB to take advantage of different benefits.
For example, Small and Medium size companies could now benefit from the reduction of the Tax rate (from 10% to 5%) applicable to their loan interests from banks as they can easily justify their status.
For any help, please feel free to contact us at the following address :
 - Your email must be sent «To the attention of Mrs Mireille DEBRIMOU, Tax Manager»