Gabon

French Languages

2.23 Million Population

XAF Currency

+3.4% (2024) GDP

Employment by Major Industries

55

Service sector

16

Industry

29

Agriculture

Country profile

Overview

The Gabonese Republic is a country in Central Africa, a former French colony. According to the 2020 census, the population was 2,230,908, covering an area of 267,667 km². The capital is Libreville.

It is located in western Central Africa, bordered by the Gulf of Guinea to the west. It shares land borders with the Republic of Congo, Cameroon, and Equatorial Guinea.

The interior of Gabon is occupied by the massifs and plateaus of the Southern Guinea Highlands. The Chaillu Mountains (Mount Iboundji, 1,580 m) reach their highest elevations. Manganese and gold deposits are found here. The Franceville region contains one of the world’s largest manganese deposits, with total reserves estimated at 225 million tons. Uranium ore deposits (reserves of 5,830 tons) are also found here. Iron ore deposits are located in the northeast of the country (Belinga), occupied by table plateaus.

Gabon has an equatorial climate with high temperatures and humidity year-round. From June to September, there is virtually no precipitation, but humidity remains high. Temperatures show little seasonal variation, with an average daily temperature of around 20°C. Approximately three-quarters of the country is covered by dense equatorial tropical forests, home to over 3,000 plant species.

Except for a few thousand Pygmies, Gabon’s 40 or so peoples speak Bantu languages that are classified into 10 linguistic groups. The majority of the population professes various forms of Christianity (primarily Roman Catholicism). The unitary state is divided into nine provinces. Oil fields and foreign investment have helped make Gabon one of the wealthiest and most stable countries in Africa, with the fourth-highest GDP per capita. However, income inequality means a significant portion of the population remains poor.

Gabon’s economy has more ties to European and American markets than to those of neighbouring countries or other African countries. Unlike these countries, Gabon relies on thousands of hired workers from other African countries to supplement its already meager talent pool in retail, handicrafts, and domestic transportation. Agriculture employs approximately a third of the workforce and plays a minor role in the country’s overall economy. Moreover, its appeal as a way of life has diminished. Improved educational and employment opportunities in cities have led to an outflow of young people from rural areas.

Real GDP growth for 2024: 3.4%

https://www.worldbank.org/ext/en/country/gabon#:~:text=Gabon’s%20growth%20accelerated%20to%203.4,key%20roles%20in%20future%20growth

Country Calling Code: +241

Official languages

French is official language in Gabon.

Currency The Central African CFA franc (French: franc CFA; ISO code: XAF; abbreviation: F.CFA) is the currency of Gabon and other five independent states in Central Africa. 

Political System

The presidential republic form of government is stated under the 2024 constitution. The president is elected by universal suffrage for a seven-year term. The president can appoint and dismiss the prime minister, the cabinet, and judges of the independent Supreme Court.

The president has other powers, such as the authority to dissolve the National Assembly, declare a state of siege, delay legislation, and conduct referendums.

Gabon has a bicameral legislature with a National Assembly and Senate. The National Assembly has 120 deputies who are popularly elected for a five-year term. The Senate is composed of 102 members who are elected by municipal councils and regional assemblies and serve for six years. The Senate was created in the 1990–1991 constitutional revision and was not brought into being until after the 1997 local elections. The President of the Senate is next in succession to the President. Deputies in the National Assembly and senators serve five-year terms, which are renewable. Deputies are directly elected, whereas senators are indirectly elected. Administratively, Gabon is divided into nine provinces, which are further divided into préfectures and sous-préfectures (subprefectures). Provincial governors, prefects, and subprefects are all appointed by the president.

The 2024 constitution provides for an independent judiciary. Gabon’s judiciary system comprises the Court of Cassation, courts of appeal, and tribunal courts, as well as administrative and financial courts. There is also the Constitutional Court, which is the highest court with regards to constitutional matters.

Options of Doing Business in Gabon for a foreign entity expanding abroad

Company

Subsidiary

Partnership

Independent Contractor

GEOR

Foreign companies looking to expand their business in Gabon have several business vehicles to choose from, depending on their operational needs, tax planning, and the level of liability protection they seek. The main business vehicles available for foreign companies in Gabon include:

  1. The Limited Liability Company (S.R.L.) is a flexible alternative, like US LLCs. It protects owners’ assets and limits each partner’s liability. An S.R.L. needs a minimum of one founder. This type of Gabon business is ideal for closely held ventures where member confidentiality is key.
  2. The Corporation (Sociedad Anónima – S.A.) is the most common company type in Gabon. It is possible to register a Gabon S.A. with only one shareholder and one director. If the company has over three shareholders, a Board of Directors is then mandatory and must comprise at least three directors. The minimum paid-up capital is EUR 14,500 (XAF 10 million) and the company will have to submit audited financial statements every year.
  3. Partnerships: it is an independent legal entity, separate from its partners. However, partners are legally liable for the company’s operations. A general partnership (“Société en Nom Collectif” or “SNC”)is an entity established by two or more shareholders where all the partners are deemed to be merchants and have unlimited joint liability for the debts of the partnership. A limited partnership (“Société en Commandite Simple” or “SCS”) must have at least one general partner (“commandités”) and at least three limited partners (“commanditaires”). In a limited partnership, the general partners are jointly and severally liable for the debts and obligations of the partnership. 
  4. Subsidiary: In Gabon, foreign investors typically establish subsidiaries that align with their business objectives and the regulatory environment. A foreign parent company must incorporate it as a local entity under Gabon law, choosing between forms like S.A. (corporation) or S.R.L. (limited liability company).
  5. Branch Office: Some foreign companies choose to establish branch offices to carry out specific operations in Gabon. Branch offices are considered extensions of the parent company and are subject to their liabilities.
  6. Representative Office: Representative offices of foreign companies in Gabon are established to carry out specific, non-commercial activities on behalf of their parent companies. Representative offices cannot engage in direct business operations or generate revenue in Gabon. Their primary functions are promotional and market research.
  7. The Sole Proprietor is the simplest form for starting a business in Gabon but carries unlimited personal liability. It’s better for local, low-risk Gabon businesses, lack corporate benefits.
  8. GEOR (Global Employer of Record) – a B2B service provider that acts as the legal employer of workers on behalf of a business worldwide.

In Gabon, the setup and dissolution of companies by foreign investors are primarily governed by the following key legislative acts:

  • The Constitution of Gabon (2024): Establishes the framework for governance and protects rights related to property and business.
  • The Civil Code: Governs contracts, property rights, and business transactions.
  • Law No. 005/2025, of 26 March 2025, which establishes an overarching legal and institutional framework for the regulation and promotion of commercial activities in Gabon. This new Law applies to all natural and legal persons engaging in professional trade, production, distribution, or provision of services within the national territory. It covers commercial registration requirements, incentives for national entrepreneurs and outlines conditions for foreign participation. These include an authorization from the Minister of Trade. The Law also defines rules for stock management, distribution systems, e-commerce, and the execution of contracts such as concessions, franchises, and warranties. It sets detailed provisions on trade inspections, labeling, market access and dispute resolution mechanisms, and introduces anti-dumping and countervailing duties and trade safeguard measures. Existing operators have a 12-month transition period to achieve compliance.

Limited Liability Company (S.R.L.)

Setting Up a Limited Liability Company

The process of setting up a Private Limited Liability Company in Gabon involves several steps that must comply with local regulations. The following outlines the process:

  1. Engage a Local Notary: A S.R.L must be established through a notarial deed, so the foreign investor must engage a local notary to draft and execute the incorporation documents. These include the Articles of Association, which outline the company’s purpose, governance structure, and operational rules.
  2. Select a Company Name: The proposed company name must be unique and comply with local requirements. Investors must check the availability of the chosen name with the Gabon Commercial Register (Registre du Commerce et du Crédit Mobilier, RCCM).
  3. Define Share Capital: It can be established by a single shareholder with a minimum share capital of 100,000 XAF (approx. €150).
  1. Appoint Directors and Shareholders: To appoint directors and shareholders for a Gabon S.R.L. must have a minimum of one director, who can be of any nationality or a legal entity.
  2. Register the Company in Gabon RCCM. This process involves submitting the company’s incorporation articles, including details such as the company’s name, purpose, board of directors’ names and addresses, and share capital.
  3. Registering the Gabon S.R.L.  in the fiscal authorities as a company that do business in Gabon. The goal is to obtain a tax identification number (Numéro d’Identification Fiscale, NIF).
  4. Obtain a Business License: Companies obtain a Gabon Business License after applying for any additional sector-specific permits required for your business activity.
  5. Open a Corporate Bank Account: The S.R.L. can open a corporate bank account in Gabon to handle its financial transactions. This requires submitting the incorporation documents and proof of the company’s registration. In Gabon, all documentation must be apostilled to comply with the bank’s requirements. Once all the requested paperwork and documents have been checked and approved, the bank will send a notification of the account opening.
  6. Employment and Immigration Permits (if applicable): If the S.R.L. intends to employ foreign staff, work permits, and residence permits must be obtained.
  7. Compliance with Ongoing Obligations: After incorporation, the S.R.L. must comply with annual reporting, tax filings, and other regulatory requirements, including submitting financial statements as required by law.

Costs

Professional assistance for incorporation typically costs around EUR 1000-2000.  Engaging a local notary to draft and execute incorporation documents ranges from EUR 500 to EUR 1000. Obtaining the necessary licenses may cost approximately EUR 1000.

Timelines

The S.R.L. can be incorporated within 4-5 weeks. Obtaining a business license may take several weeks, depending on the complexity of the application and compliance with regulatory requirements. Creating the entire package of documents from scratch can take up to several months.

Closing of a Limited Liability Company (S.R.L.)

The process of closing an S.R.L. in Gabon for foreign investors involves several legal and administrative steps to ensure compliance with local regulations. The key steps are as follows:

  1. Decision to Dissolve: The shareholders of the S.R.L. must pass a formal resolution to dissolve the company. This decision is typically made during a general meeting of shareholders and must comply with the company’s Articles of Association.
  2. Appointment of a Liquidator: Once the decision to dissolve is made, a liquidator must be appointed. The liquidator is responsible for managing the dissolution process, settling the company’s debts, and distributing any remaining assets to shareholders. In many cases, the company’s director acts as the liquidator.
  3. Notification to Authorities: The company must notify the Gabon RCCM. It will update the public register to reflect the company’s dissolution status. The National Tax Authority must also be informed, as all outstanding tax obligations, including corporate income tax, turnover tax, and payroll tax (if applicable), must be settled.
  4. Publication of Dissolution: The dissolution must be published in a local newspaper to inform creditors and other stakeholders. This provides an opportunity for creditors to submit claims against the company.
  5. Settlement of Debts and Liabilities: The liquidator is responsible for settling all outstanding debts and liabilities. If the company’s assets are insufficient to cover its debts, the liquidator may initiate bankruptcy proceedings.
  6. Registry Filing: Final liquidation documents must be approved by shareholders and registered to close the entity formally.

Costs

Engaging a local notary to formalize the dissolution process is mandatory. Notary fees can vary but typically range from €1000 to €1,500, depending on the complexity of the dissolution and the notary rates. The Gabon RCCM may charge administrative fees for deregistering the company. These fees are generally modest, approximately up to €700. Hiring legal advisors or accountants to assist with the dissolution process can incur additional costs, typically ranging from €1,000 to €2,000, based on the services required and the firm’s rates.

Timelines

In general, the entire process of dissolving an S.R.L. in Gabon can range from 3 to 6 months, depending on the company’s specific circumstances and the efficiency of the procedures followed.

Corporation (S.A.)

Setting Up a Corporation

The process of setting up a Gabon S.A. is relatively straightforward. Here is a step-by-step guide:

  1. Engage a Local Notary: an S.A. must be established through a notarial deed, so the foreign investor must engage a local notary to draft and execute the incorporation documents
  2. Choose a Name: The first step in setting up a Gabon S.A. is to choose a name for the company. The name should be unique and not already registered in Gabon. It must have the abbreviation S.A. at the end of the name.
  3. Choose Directors and Shareholders: It requires at least one shareholder and a minimum share capital of 10,000,000 XAF (approx. €15,200). An SA must also appoint a board of directors.
  4. Register the Company: Once the directors and shareholders have been chosen, the next step is to register the company with Gabon. This process involves submitting the company’s incorporation articles, including details such as the company’s name, purpose, board of directors’ names and addresses, and share capital.
  5. Registering the Gabon S.A. in the fiscal authorities as a company that do not do business in Gabon.
  6. Open a Bank Account (optional): To operate a Gabon S.A., it is not necessary to have a bank account in Gabon.
  7. The Gabon S.A. must maintain accounting records. These records must be done and seal by a licensed accountant, that not necessary must be from Gabon. The resident agent must maintain copy of the balances. Balances must be submitted to the resident agent once a year. Finally, it is necessary to file annual reports with the Gabon RCCM to maintain the company’s good standing.
  8. Obtain a Business License: Companies obtain a Gabon Business License after applying for any additional sector-specific permits required for your business activity.
  9. Employment and Immigration Permits (if applicable): If the S.A. intends to employ foreign staff, work permits, and residence permits must be obtained.
  10. Compliance with Ongoing Obligations: After incorporation, the S.A. must comply with annual reporting, tax filings, and other regulatory requirements, including submitting financial statements as required by law.

Costs
The cost to form a Gabon S.A. typically starts around 1000 EUR for the initial registration, which includes government fees. Additional costs can arise for optional services like nominee shareholders, apostilled documents, and courier services.

Timelines
Registering a Gabon S.A. typically takes 3-4 weeks. The exact timeframe depends on factors like the chosen service provider, their efficiency, and any additional requirements for document legalization and courier delivery.

Closing of a Corporation (S.A.)

The process of closing an S.A. in Gabon for foreign investors involves several legal and administrative steps to ensure compliance with local regulations. The key steps are as follows:

  1. Decision to Dissolve: The shareholders of the S.A. must pass a formal resolution to dissolve the company. This decision is typically made during a general meeting of shareholders and must comply with the company’s Articles of Association.
  2. Appointment of a Liquidator: Once the decision to dissolve is made, a liquidator must be appointed. The liquidator is responsible for managing the dissolution process, settling the company’s debts, and distributing any remaining assets to shareholders. In many cases, the company’s director acts as the liquidator.
  3. Notification to Authorities: The company must notify the Gabon RCCM. It will update the public register to reflect the company’s dissolution status. The National Tax Authority must also be informed, as all outstanding tax obligations, including corporate income tax, turnover tax, and payroll tax (if applicable), must be settled.
  4. Publication of Dissolution: The dissolution must be published in a local newspaper to inform creditors and other stakeholders. This provides an opportunity for creditors to submit claims against the company.
  5. Settlement of Debts and Liabilities: The liquidator is responsible for settling all outstanding debts and liabilities. If the company’s assets are insufficient to cover its debts, the liquidator may initiate bankruptcy proceedings.
  6. Registry Filing: Final liquidation documents must be approved by shareholders and registered to close the entity formally.

Costs
Engaging a local notary to formalize the dissolution process is mandatory. Notary fees can vary but typically range from €1000 to €2,000, depending on the complexity of the dissolution and the notary rates. The Gabon RCCM may charge administrative fees for deregistering the company. These fees are generally modest, approximately €700. Hiring legal advisors or accountants to assist with the dissolution process can incur additional costs, typically ranging from €1,000 to €3,000, based on the services required and the firm’s rates.

Timelines
In general, the entire process of dissolving an S.A. in Gabon can range from 4 to 6 months, depending on the company’s specific circumstances and the efficiency of the procedures followed.

A Subsidiary, a Branch and a Representative office

A Subsidiary

Setting up a Subsidiary

The most popular types of subsidiaries for foreign investors in Gabon are as follows:

  1. Private Limited Liability Company (S.R.L.): This is the most used structure for subsidiaries due to its flexibility, limited liability protection, and suitability for a variety of business activities. Foreign investors prefer the S.R.L because the liability of shareholders is limited to their contributions, and it requires minimal capital investment.
  2. Corporation (S.A.): This structure is often chosen for larger businesses or subsidiaries that plan to raise capital through public offerings. The S.A. offers limited liability to its shareholders and is designed for operations requiring significant investments.

These structures allow foreign investors to establish a legal presence in Gabon while catering to their operational, financial, and liability needs. The choice of subsidiary depends on the nature of the business, the scale of operations, and strategic objectives.

Please refer to the relevant parts of the text for the details of incorporating and dissolving, costs and timelines associated.

A Branch

Setting up a Branch

The process of setting up a branch in Gabon for a foreign company involves several steps to ensure compliance with local regulations. Below is an overview:

  1. Authorization from the Parent Company: The foreign company must provide an official resolution or authorization from its board of directors or governing body to establish a branch in Gabon. This resolution should detail the purpose and scope of the branch’s operations.
  2. Appointing a Local Representative: A local representative, who will act on behalf of the branch, must be appointed. This representative is responsible for ensuring compliance with local laws and managing administrative matters.
  3. Preparation of Required Documents: The foreign company must prepare the following documents:
    • A notarized and apostilled copy of the parent company’s articles of incorporation or equivalent documents.
    • Proof of the appointment of the local representative.
    • A detailed description of the branch’s proposed activities in Gabon etc.
  4. Registration with the Gabon RCCM: The branch must be registered with the RCCM. The foreign company must submit the required documents along with a completed registration form. A registration fee of approximately up to €700 applies.
  5. Application for a Business License: The branch must apply for a business license to local authority. This process involves submitting the branch’s registration documents, a description of its intended activities, and the local representative’s details. The application process typically takes 6 weeks.
  6. Tax Registration: The branch must register with the Gabon Tax Administration to obtain a NIF. This is essential for complying with corporation, turnover, and other applicable taxes.
  7. Opening a Bank Account: A corporate bank account must be opened in the branch’s name to facilitate business transactions. Banks may require the branch’s registration certificate, business license, and identification documents of the local representative.
  8. Compliance with Employment and Immigration Laws (if applicable): If the branch plans to hire employees or bring in foreign staff, it must comply with Gabon’s labor laws and obtain necessary work or residency permits.
  9. Begin Operations: Once all regulatory and administrative steps are complete, the branch is authorized to commence its operations in Gabon.

Costs

Approximately €2,000, depending on the complexity and professional services used.

Timelines

Registration with the RCCM takes 3-4 weeks after submission of documents.

Application for a Business License takes 6 weeks.

Closing a Branch

Closing a Branch in Gabon

The process of closing a branch in Gabon for foreign investors involves a series of legal, administrative, and financial steps to ensure the branch is properly dissolved and compliant with local regulations. Below is an outline of the process:

  1. Decision to Close the Branch: The foreign company must make the formal decision to close its branch in Gabon. This decision is usually documented through a board resolution or other formal approval from the parent company’s governing body.
  2. Appointment of a Liquidator (if required): If necessary, a liquidator may be appointed to oversee the closure process. The liquidator is responsible for managing the distribution of assets, settling liabilities, and ensuring that all financial obligations are met.
  3. Settling Liabilities and Financial Obligations: Before the branch can be officially closed, all outstanding debts, contracts, and financial obligations must be settled. This includes paying off creditors, terminating employee contracts, and addressing any pending obligations.
  4. Tax Compliance: The branch must ensure that all taxes, including corporate taxes and other relevant duties, are fully paid. This involves obtaining tax clearance from the Gabon Tax Administration. Any outstanding taxes or compliance issues must be resolved before proceeding with the dissolution.
  5. De-registering with the RCCM: The branch must submit a formal request for deregistration with the Gabon RCCM. The required documents typically include the dissolution resolution, proof of identity of the authorized representative, and any other necessary paperwork.
  6. Cancelling Business Licenses: The branch must cancel its business license. This process ensures that the branch is no longer recognized as an operating entity in Gabon.
  7. Closing Bank Accounts: The branch must close any corporate bank accounts opened in Gabon. Any remaining funds in the accounts are distributed according to the terms of the liquidation or dissolution agreement, after settling all liabilities.
  8. Labor and Immigration Compliance: If the branch employs workers, it is necessary to comply with local labor laws and immigration regulations. This includes terminating work contracts and ensuring any work or residency permits for foreign employees are cancelled.
  9. Final Reporting: Once all legal, financial, and administrative tasks are completed, the liquidator or authorized representative will prepare a final report outlining the dissolution process.
  10. Formal Deregistration and Closure: The final step is the official deregistration of the branch with the RCCM and the completion of the closure process. The parent company will receive confirmation that the branch is officially closed and no longer recognized as an entity in Gabon.

Costs

The estimated costs are between €1,000 and €1,500, depending on the complexity of the closure and the services required.

Timelines

The deregistration process with the RCCM typically takes 3–4 weeks after submission of the necessary documents.

Obtaining tax clearance can take 2–4 weeks, depending on the tax authority’s workload and the complexity of the tax situation.

Preparing the final report and completing all administrative tasks can take 1–2 weeks after all liabilities are settled and deregistration processes are completed.

A Representative office

Setting up a Representative office

The process of setting up a representative office in Gabon for a foreign company involves completing several legal, regulatory, and administrative steps. It is worth noting that representative offices cannot engage in direct business transactions, banking, or other commercial activities within Gabon. Below is an outline of the process:

  1. Approval from the Parent Company: The foreign company must issue a formal resolution or authorization to establish a representative office in Gabon. This document must outline the purpose and activities of the representative office, which should be limited to non-commercial functions such as marketing, promotion, or liaison activities.
  2. Appointment of a Local Representative: The parent company must appoint a local representative to act as the point of contact for the representative office. This individual will handle compliance with local regulations and manage the office’s day-to-day administrative tasks.
  3. Preparation of Required Documents: The foreign company must prepare and submit the following:
    • A notarized copy of its articles of incorporation or equivalent documents.
    • A resolution authorizing the establishment of the representative office.
    • Identification and authorization details for the local representative etc.
  4. Registration with the RCCM: The representative office must register with the Gabon RCCM. Since representative offices are non-commercial entities, their registration involves simpler documentation and fees compared to other business structures.
  5. Tax Registration (if applicable): Although representative offices generally do not generate income locally, they may still need to register with the Gabon Tax Administration to confirm their tax-exempt status. This involves filing initial tax documents to clarify the office’s non-commercial nature.
  6. Lease or Rental Agreement for Office Space: The representative office must secure a physical location in Gabon. A lease or rental agreement may be required as part of the registration or licensing process.
  7. Compliance with Employment and Immigration Laws (if applicable): If the representative office employs local or foreign staff, it must comply with labor and immigration laws, including obtaining work permits and adhering to local employment regulations.
  8. Commencement of Activities: Once all registration and administrative requirements are complete, the representative office can begin operations. Its activities must remain non-commercial, focusing on tasks such as market research, client liaison, or promotional activities for the parent company.

Costs

Estimated between €1000 and €1,500, excluding office lease and operational expenses, depending on the use of professional services and the specifics of the business.

Timelines

Registration with the Gabon RCCM takes 3-4 weeks after submitting the necessary documents.

Closing a Representative office

The process of closing a representative office for a foreign company in Gabon involves completing several steps to ensure compliance with local laws and regulations. Below is an outline of the process:

  1. Decision to Close the Representative Office: The foreign parent company must formally decide to close the representative office. This decision should be documented in a resolution or board decision, outlining the reasons for closure and authorizing the necessary steps.
  2. Notification to Authorities: The parent company must notify the Gabon RCCM of its intent to close the representative office. This involves submitting the closure resolution, along with identification documents and any forms required.
  3. Settlement of Financial Obligations: The representative office must ensure all financial obligations are settled. This includes paying outstanding bills, terminating service contracts, and ensuring any local debts are cleared.
  4. Tax Clearance: Although representative offices typically do not generate income, they must confirm their tax status with the Gabon Tax Authority. A tax clearance certificate may need to be obtained to confirm there are no outstanding tax liabilities.
  5. Termination of Lease or Rental Agreements: The office lease or rental agreement must be terminated according to the terms of the contract. Any associated costs or obligations, such as restoration fees, must be addressed.
  6. Employee Termination and Immigration Compliance: If the representative office employs staff, all employment contracts must be terminated in compliance with local labor laws. Work or residency permits for foreign employees must also be cancelled with the relevant immigration authorities.
  7. Submission of Final Report: A final report detailing the closure process, including confirmation of financial settlements, tax clearance, and license cancellations, must be prepared. This report may need to be submitted to relevant authorities, including the Chamber of Commerce.
  8. Deregistration of the Office: The final step involves deregistering the representative office with the Gabon RCCM. Once the deregistration is complete, the office is no longer legally recognized in Gabon.

Costs

Estimated between €1500 and €2,000, depending on the complexity of the closure and the services required.

Timelines

Approximately 2 to 4 months to complete the entire process, depending on factors such as lease obligations, employee termination, and tax clearance.

Partnership

Partnership

Setting Up a Partnership

Setting up a partnership in Gabon for foreign investors involves several key steps and legal requirements. Partnerships in Gabon can take different forms, such as a General partnership (SNC: Société en Nom Collectif), Simple Limited Partnership (SCS: Société en Commandite Simple). Below is a general outline of the process:

Choose the Type of Partnership: Foreign investors must determine whether they want to establish a general partnership (SNC) or a simple partnership (SCS). In a SNC, all partners share unlimited liability for the partnership’s obligations. Gabon allocates a special kind of partnerships – simple partnerships. Company with 2 types of partners, the general partners who are the managers with unlimited liability and the limited partners who are contributors of capital, liable only up to the amount of their contributions.

Draft a Partnership Agreement: Draft a partnership agreement that outlines key aspects of the partnership, including the roles and responsibilities of each partner, capital contributions, profit and loss distribution, procedures for decision-making and dispute resolution, and exit clauses. While not legally required, it is strongly recommended to have the agreement notarized.

Register with the Gabon RCCM: The partnership must be registered with the Gabon RCCM. Submit the partnership agreement, identification and proof of address for all partners, and a completed registration form. Pay the applicable registration fee, which is typically up to 700 EUR.

  1. Registering the Gabon partnership in the fiscal authorities as a company that do business in Gabon.
  2. Open a Bank Account (optional): To operate a Gabon partnership, it is not necessary to have a bank account in Gabon.
  3. The Gabon partnership must maintain accounting records. These records must be done and seal by a licensed accountant, that not necessary must be from Gabon.  The resident agent must maintain copy of the balances. Balances must be submitted to the resident agent once a year. Finally, it is usually necessary to file annual reports with the Gabon RCCM to maintain the company’s good standing.
  4. Obtain a Business License: Companies obtain a Gabon Business License after applying for any additional sector-specific permits required for your business activity.
  5. Employment and Immigration Permits (if applicable): If the partnership intends to employ foreign staff, work permits, and residence permits must be obtained.
  6. Compliance with Ongoing Obligations: After incorporation, the partnership must comply with annual reporting, tax filings, and other regulatory requirements, including submitting financial statements as required by law.

Costs
Legal or consultancy fees for drafting a Partnership agreement are €500–€1000 (depending on whether it is notarized).
Registration with the Gabon RCCM implies payment of registration fee up to €700.
There are no direct costs for opening a bank account, but a minimum deposit may be required (varies by bank).

Timelines

It takes 3-4 weeks to register a partnership with RCCM. Getting necessary licenses takes 4 – 6 weeks in average.

Closing a Partnership

The process of closing a partnership in Gabon for foreign investors involves several legal, administrative, and financial steps to ensure compliance with local regulations. Below is an outline of the process:

  1. Agreement Among Partners: Partners must agree to dissolve the partnership. This decision is usually formalized through a resolution or amendment to the partnership agreement. The partnership agreement often outlines the dissolution process, including partner approvals and the role of a liquidator.
  2. Appointment of a Liquidator (if required): If specified in the partnership agreement or deemed necessary, a liquidator is appointed to manage the dissolution process. The liquidator’s duties include settling debts, distributing remaining assets, and managing final legal and financial obligations.
  3. Notification to the Gabon RCCM: The dissolution must be reported to the RCCM submitting a formal request for deregistration. Required documents typically include the resolution to dissolve, proof of identity for the partners, and completed deregistration forms.
  4. Settling Liabilities: All outstanding debts, obligations, and liabilities of the partnership must be settled. This includes paying off creditors, terminating contracts, and addressing any financial matters pending.
  5. Tax Clearance: The partnership must obtain tax clearance from the Gabon Tax Administration. This involves ensuring that all taxes, such as income tax, turnover tax, and payroll taxes, are fully paid. Tax audits may be conducted during this period.
  6. Distribution of Remaining Assets: After liabilities are settled, any remaining assets are distributed among the partners according to the terms of the partnership agreement or legal provisions.
  7. Final Reporting and Notification: The liquidator (if appointed) or the partners prepare a final report summarizing the dissolution process. This report is submitted to the relevant authorities.
  8. Cancellation of Business Licenses: The business license issued to the partnership must be formally cancelled.
  9. Closing Bank Accounts: Any bank accounts in the name of the partnership must be closed. Remaining funds are distributed to the partners after all financial obligations are met.
  10. Confirmation of Deregistration: Once all steps are completed, the RCCM issues confirmation of deregistration, officially closing the partnership.

Costs

The costs and timelines for closing a partnership in Gabon for foreign investors depend on the type of partnership, the complexity of its financial obligations, and whether professional assistance is required. Legal and consultancy fees for preparing dissolution documents and agreements typically range from €1000 to €1,500, while liquidator fees, if a liquidator is required, can range from €1,000 to €3,000. Deregistration with the RCCM costs up to €700.

Timelines

It takes approximately 6 months to complete the entire process.

Independent Contractor/ Sole Proprietor

Independent Contractor and Sole Proprietor

A sole proprietorship (Enterprise Individuelle) in Gabon is a business run by an individual. The liability is unlimited, which means that the owner is liable for all their assets and debts.

Conducting the sole proprietorship is easier than other business forms as there is only one decision-maker, and the actions can be taken instantly. The proprietorship is also more flexible to the changing environment, unlike large companies.

Setting Up as a Sole Proprietor in Gabon

The process of setting up as a sole proprietor in Gabon involves several steps to ensure compliance with local regulations. Below is an outline of the procedure:

Determine the Nature of Business: The individual must first define the type of business activity they intend to pursue and confirm whether a business license is required.

Choose a Business Name: The individual must select a trade name for their business, ensuring it is unique and does not conflict with existing registered names. This name must comply with Gabon’s naming regulations.

Register with the ANPI-Gabon via the Guichet Numérique de l’Investissement for business setup; Direction Générale des Impôts (DGI) for tax registration.
Documents person will need as follows:

  • Valid ID (passport, national ID, or residence permit)
  • Proof of address (e.g., utility bill or rental contract)
  • Plan de localisation/plan of location of your activity (form IM03)
  • Electricity bill or equivalent utility documentation
  • Lease agreement or property title if renting business premises
  • Copy of the licences required to operate regulated activities (if applicable).

Social Security Registration: If the business intends to hire employees or the sole proprietor is required to contribute to social security, they must register in Social Security Administration.

Open a Business Bank Account: Opening a local business bank account is optional but recommended for managing business transactions and maintaining financial records.

Lease or Secure a Business Location: If applicable, the sole proprietor must secure a lease for office or retail space and ensure compliance with regulations for the chosen business location.

Comply with Additional Permits or Requirements: Depending on the nature of the business, additional permits may be required, such as environmental or health permits. These must be obtained before operations begin.

Commence Operations: Once all registrations and licenses are complete, the sole proprietor can officially start operating their business in Gabon.

Costs

The registration fee is typically up to €50, depending on the business’s scope.

Timelines

This process typically takes 2 weeks, depending on the time required for obtaining a business license and completing registrations. It is advisable to consult with local professionals to ensure all legal requirements are met efficiently.

Employee Misclassification Risk

Employee misclassification is the practice of companies inappropriately classifying workers as independent contractors rather than employees to avoid costs and administrative burdens associated with the latter. Companies do this to save money on things like benefits, payroll taxes, and unemployment insurance. Employee misclassification refers to an employment situation in which either an employer or an employee intentionally misrepresents the true nature of their working relationship.

The distinction between independent contractors and full-time employees is important because it affects issues such as tax obligations, benefits, and labor laws. Here are some factors that can help distinguish between the two: 

1. Control over Work 

Does the company have the right to direct how, when, and where the worker does his or her job? If the worker is free from control and direction in carrying out the duties under the contract and in practice, then the worker is likely an independent contractor. At the same time, full-time employees typically have more control and are subject to the direction and control of their employer. 

2. Skill Level 

How much training was required for a position?  – The more training a company requires its employees to have, the less likely that company is going to hire an independent contractor. The skill level of an independent contractor is often directly related to the type of work they do, in that there’s a certain expectation that they have a more specialized level of expertise than a full-time employee. An independent contractor is hired with their specialized skills in mind, while a full-time employee is generally hired to perform a specific job function within your company. 

3. Financial Control & Tax Obligations 

Are the business aspects of a worker’s job controlled by an employer or are they in control of their own finances? Tax obligations are one of the major differences between independent contractors and full-time employees. Independent contractors are responsible for paying their own taxes, while employers are required to withhold taxes from the pay of full-time employees. 

4. Benefits 

Full-time employees are often eligible for benefits such as health insurance, retirement plans, and paid time off. When an employee is misclassified, that person may not have access to various benefits, such as health insurance and pension plans. Independent contractors are typically responsible for their own benefits and social security. 

5. Duration of Work 

Full-time employees are typically hired for a longer period of time, while independent contractors are often hired for specific projects or short-term work. 

6. Type of Relationship 

Is there a written contract or agreement that outlines what will be done and how much will be paid? When you treat someone as an independent contractor, they are not part of your company’s payroll. Rather, they operate as freelancers paid for their services—no matter how many hours they log in an average week. Independent contractors are often hired for specific projects or jobs that will end at some point and are not an ongoing source of work. In general, if a person does other work besides what you bring them in for (such as taking additional jobs from other employers or working independently), she’s more likely to be considered an independent contractor than a full-time employee. 

Misclassifying employees as independent contractors can result in various consequences and liabilities for employers, including: 

  • Back taxes: Employers may have to pay back taxes at the national, state, and local levels. 
  • Back benefits: Employers may be responsible for providing backdated benefits to the employee, such as medical insurance, worker’s compensation, vacation pay, and sick leave. 
  • Legal penalties: Employers may be subject to legal fines, including liquidated damages and attorney fees. In some cases, misclassification can lead to class action lawsuits. 
  • Damage to reputation: In addition to financial and legal repercussions, employers risk damage to their reputation among peers and potential hires. 

How Global Employer of Record Can Help Address Worker Misclassification Risk? 

Global Employer of Record (EOR) service providers can help employers operating internationally address the risk of worker misclassification by providing expert guidance and support on compliance with local labor laws and regulations. Here are some ways that EOR service providers can help. 

1. Compliance with Local Laws in 190 Countries 

Global Employer of Record has expertise in local labor laws and regulations and can help employers ensure compliance with worker classification rules in different jurisdictions. They can guide whether a worker should be classified as an employee or an independent contractor. They can also assist with the necessary paperwork and documentation to ensure compliance. 

2. Worker Misclassification Risk Management 

Global EOR service providers can help employers manage the risks associated with worker misclassification by supporting tax compliance, workers’ compensation insurance, and other regulatory requirements. They can also help employers stay up-to-date with changes to labor laws and regulations in different countries. 

3. Flexibility 

A Global EOR can offer flexible employment solutions for international workers, such as short-term assignments, contract work, or permanent employment, depending on the needs of the employer and the worker. This flexibility can help employers manage their workforce more effectively while minimizing the risk of worker misclassification. 

4. Administrative Support 

A Global Employer of Record can handle administrative tasks related to employment, such as payroll processing, benefits administration, and compliance reporting. This can help employers focus on their core business activities while ensuring that their international workforce is managed effectively and compliantly. 

Global EOR can help employers navigate the complex and ever-changing landscape of worker classification laws and regulations across different jurisdictions. By leveraging the expertise and support of a Global EOR, employers can reduce the risk of worker misclassification and ensure compliance with local labor laws and regulations.

Permanent Establishment (PE) Risks

Permanent Establishment (PE) is a concept in international taxation that refers to a fixed place of business through which an enterprise carries out its business activities. A PE can be a branch, office, factory,  warehouse, or any other fixed place of business where the enterprise carries out its business activities, either wholly or partially. When an enterprise operates through a (Permanent Establishment) PE in a country other than its home country, it may become subject to the tax laws of that country.

This means that the income generated by a PE is potentially taxable in the country where the business is located and in the country where the business is incorporated. Only income attributable to local activity should be subject to local tax, which can be determined through a profit attribution exercise. However, consideration must also be given to whether there is an applicable double tax treaty between the two countries. If an enterprise is found to have a PE in a foreign country, it may be subject to tax on the profits earned in that country, as well as penalties and interest for failing to comply with the tax laws of that country. To avoid permanent establishment risk, enterprises must carefully assess their business activities in foreign countries and ensure that they do not create a fixed place of business or exceed the allowable time limit for employee presence in that country. They should also seek professional advice to understand the tax laws of foreign countries where they operate. 

An organization will have a permanent establishment (PE) if any of the following applies: 

  1. The business has a physical presence in a foreign country. 
  2. The business is regularly present through employees or agents. 
  3. A sale is made from a fixed place of business. 
  4. The business is engaged in continuous and systematic activities in the foreign country. 

If an enterprise wants to maintain direct control over everything from accounting procedures to staff management, it may choose to establish a foreign legal entity. This option allows the enterprise greater control over its operations in the foreign country, including hiring and managing employees, implementing its accounting procedures, and maintaining its banking relationships. However, establishing a foreign legal entity can be costly and time-consuming. In addition, it requires the enterprise to comply with the legal and regulatory requirements of the foreign country, which may differ significantly from those of the home country. 

Alternatively, an enterprise may choose to outsource some of its operations, except for managing assets and collecting profits. This option allows businesses to focus on their core competencies while outsourcing non-core activities to specialized service providers. 

Using a Global Employer of Record (EOR) can be an effective way for multinational employers to prevent or address Permanent Establishment (PE) risks. This third-party global employment solution enables compliance with local employment and tax laws while avoiding the establishment of a legal entity and taxable presence in the country.

PEO (Professional Employer Organization) / EOR (Employer of Records)

A Global Employer of Record 

A Global Employer of Record (GEOR) is a B2B service provider that acts as the legal employer of workers on behalf of a business worldwide. The GEOR takes on the responsibility of hiring and managing the employees, including handling payroll, benefits, taxes, and compliance with local labor laws and regulations across the globe. Essentially, a GEOR assumes the role of the employer of the workers in the target countries, while the business retains control over the work that the employees do. 

When a business engages a GEOR, it enters into an agreement with the GEOR that outlines the terms of the relationship, including the services to be provided, the fees to be paid, and the responsibilities of each party. The business typically provides the GEOR with information about the workers it wishes to hire, such as their job duties and compensation, and the GEOR handles the administrative and legal aspects of employing the workers. 

Below are some typical benefits for leveraging the Global EOR model: 

  1. Compliance:  GEOR ensures compliance with local labor laws and regulations in different countries and across jurisdictions. 
  2. Payroll Management: a reliable GEOR provides payroll management services that include tax management, social security, employee benefits, and payment processing. 
  3. Recruitment and Onboarding: GEORs can also manage the recruitment process for you, from sourcing candidates, conducting interviews, and managing the onboarding process. 
  4. Risk Management: Under GEOR, the client company has a reduced risk of exposure to employment-related claims and lawsuits in countries where they have no legal entity. 
  5. Flexibility: It offers flexibility for companies to expand or reduce their workforce in various countries, depending on their business needs. 
  6. Cultural Adaptation: GEORs provide support and guidance on cultural adaptation and local norms, which helps companies better navigate the unique HR complexities in different countries. 
  7. HR Back-Office Support: GEORs offer additional HR back-office support services that include employee handbooks, performance management, and termination support. 
  8. Expertise: GEORs bring expertise in global employment laws and regulations, with a team of local experts in various fields to ensure compliance and legal requirements are met for each employee. 

A GEOR can play a strategic role in advising businesses on which new markets to enter and how to test those markets. With their expertise and knowledge of local employment laws, regulations, and business practices across multiple jurisdictions, a GEOR can help businesses make informed decisions about which markets to prioritize and how to navigate the labour, tax, or immigration law complexities of entering those markets. 

For example, a GEOR can provide businesses with insights into local labor markets, such as talent availability, compensation levels, mandatory benefits, employer burden, ongoing tax intelligence, ongoing compliance intelligence, multi-country payroll budgeting, talent location intelligence, helping them identify the most promising markets to enter and develop a competitive hiring strategy to attract and retain top global talent. 

Additionally, a GEOR can advise businesses on the regulatory and compliance landscape in new markets, including local labor laws, employment tax regulations, and employment-related liabilities. This can help businesses avoid global payroll budgeting errors, mitigate permanent establishment, employee misclassification, and under-taxation risks and ensure compliance with local regulations, avoiding potential negative legal and financial consequences. A GEOR like Acumen International can take on all the responsibilities of hiring an employee for you, including the legal and bureaucratic hurdles, and manage the entire employment process. 

GEOR services can be highly beneficial for businesses expanding abroad, especially if they are looking to establish a presence in a new country quickly and cost-effectively. 

A GEOR can provide businesses with access to local networks and resources, including local vendors, service providers, and industry associations. This can help businesses build relationships and establish a presence in new markets more quickly and efficiently. By working with a GEOR, businesses can focus on their core operations and growth strategies, rather than getting bogged down in administrative and legal details. 

A Global Employer of Record (GEOR) can act as a temporary global employment vehicle for businesses exploring new markets or establishing a legal entity in a target country. By providing access to its in-country employment infrastructure, a GEOR can help ensure a smooth and successful transition to a new legal entity. 

International businesses without subsidiaries may also use this service if they hire only one employee abroad for specialized roles, such as business development managers who scout for new business opportunities in foreign markets or sales directors who manage sales teams working remotely from other countries.  

On the other hand, here are the services not included in GEOR solutions:  

  • Quality control of employees’ work and their promotion; 
  • Decisions regarding contract termination and compensation, except for legal document processing; 
  • Project management.

A company expanding into a new country may find that an GEOR is not the best solution for more than 15 employees. It may consider incorporating an entity and hiring local experts to help manage the payroll process. In that case, the GEOR may only be an interim solution to get employees hired quickly. 

Suppose you plan on hiring foreign workers to provide services or generate sales over $100,000 annually in any country. In that case, you should consider setting up an overseas subsidiary or branch office. Doing so will help to mitigate the risk of permanent establishment. 

Acumen International’s mission is to provide services that make the world a smaller place. It aims to help businesses of all sizes in any industry reach international growth and expansion through various services. 

Looking to hire employees quickly and efficiently in any of 190 countries? Acumen International can help with our Express Global Employment solution. Comprehensive Global EOR Service Portfolio of Acumen International supports employment cycle, guaranteeing compliance and 24/7 support at each of its’ steps: 

Recruitment: talent skilled in highly specialized areas, executive search, contingency workforce 

Global mobility: employee work visa and work permit sponsorship, dependent visa, visa extensions, application for a sponsor license for a foreign national, relocation assistance 

Checks: health, criminal record, background, education 

Onboarding: employee agreement drafting, compliant worker onboarding on your behalf, account setup in the payroll and HR systems, employee data entry and records maintenance, probation periods management 

Payroll administration: in-country registration with statutory bodies, day-to-day payroll management, pay slips with required frequency, accruals, allowances, 13th and 14th salary 

Working time and PTO processing: working hours, overtime, public holidays, annual leave, parental leave, sick leave, additional leave 

Benefits administration: health insurance, workers’ compensation, unemployment insurance, share plans for executives, bonuses and equipment provision, expenses reimbursement and business trips processing, dental treatment. 

Tax administration and reporting: employer and employee taxes and contributions, withholding tax, local tax payments and reporting to local authorities, end of financial year reporting. 

Offboarding: employment agreement termination, dismissal – by the employer, resignation – by the employee, termination by mutual agreement, notice period handling, final settlement and severance payment, de-registration with statutory bodies 

Get in touch with our team, follow the links below: 

https://expressglobalemployment.com/new-market-expansion/

https://expressglobalemployment.com/solutions/why-choose-our-solution/

Taxation

Taxes on corporate income

Value added tax or local sales taxes

Withholding tax

Employment related taxes 

Taxes on corporate income

The corporate income tax (CIT) is paid by residents and non-resident companies on their income.

Resident companies pay corporate tax on activities performed both in Gabon and abroad. Non-residents pay the tax only from profits earned in Gabon.

The standard CIT rate is 30% (35% for oil & gas and mining companies) on net profit. The rate may be reduced depending on the field of activity.

Payee

  • Non-individual persons or enterprises (Companies etc)

Due Date

  • Due and payable on the 30 of April.
  • Tax is paid on gains or profits forming assessable income

Filing

  • Returns are to be filed after the end of the financial year. The company’s financial statement is to be included in the filing.

CIT is assessed on profits minus deductible expenses and charges.  In the absence of any supporting document to determine the result taxable to CIT, the said taxable result will be determined after deducting from the turnover out of taxes automatically reconstituted a lump-sum discount equal to:

  • 70% for the companies which activities relate to purchase, resale, or production of goods destined to resale.
  • 50% for the companies providing services.
  • 40% for liberal professions and assimilated.

Value added tax or local sales taxes

The general value added tax (VAT) rate is 18% for all standard-rated supplies. 

Reduced rates:

  • 10%, which applies to production and sale transactions relating to specific products listed.
  • 5%, which applies to the production and the sale of specific products listed.
  • 0%, which applies to exports, international carriage, refuelling, operations, maintenance and repair operations carried out on aircraft and ships that are assigned to international traffic.

Operations in relation to the construction or sale of real estate, such as sales of lands to build on, delivery of new buildings, or self-delivery of some buildings, carried out by people subject to VAT in the scope of their economic activities are subject to VAT on real estate.

VAT can be paid by both companies and individuals, such as self-employed people. The taxpayer is obliged to register as a VAT payer. VAT-registered businesses are required to file monthly returns detailing taxable transactions.

Withholding tax

The general withholding tax (WHT) rates are:   

  • 20% on dividends paid to residents and non-resident companies 
  • 20% on dividends paid to residents and non-resident individuals 
  • 20% on bank interests to residents and non-resident companies
  • 20% on royalties paid to companies 
  • 25% of net profits are made by branches.

The above rates applicable to non-residents can be reduced or eliminated by the double tax treaties if certain conditions are met.   

Employment related taxes

Employee taxes and contributions

Personal income tax

Individuals are liable to personal income tax (Impôts sur le revenu des personnes physiques or IRPP) in Gabon on all wages, salaries, annuities, fees, and allowances received as remuneration for any activity carried out in Gabon. 

The IRPP is determined according to a progressive rates scale established according to the taxpayer’s family charges (with a maximum of six dependent children) and according to income brackets.

The number of shares to be taken into account for the assessment of the taxable income is fixed as follows:

  • Unmarried, divorced, or widowed person without dependent child – 1share
  • Married person without dependent child or unmarried or divorced person having a dependent child – 2 shares
  • Person married or widowed within two years after the death of the spouse, having a dependent child, or unmarried, divorced person having two dependent children – 2.5 shares
  • Person married or widowed within two years after the death of the spouse, having two dependent children, or unmarried, divorced person having three dependent children – 3 shares
  • Person married or widowed within two years after the death of the spouse, having three dependent children, or unmarried, divorced person having four dependent children – 3.5 shares
  • Each additional child (up to a maximum of six children) – 0.5 share.

The number of shares enables the determination of a ratio ‘Q’, which enables the determination of the income bracket of the employee as set out hereafter:

Q – [(S x 12) – A] / P (as Q is annual)

P – Family quotient (number of shares).

S – Monthly taxable gross income

A – 20% allowance.

‘Q’ allows you to determine the level of reduction in employee income for taxation.

The general amount of the tax is determined according to the following progressive rates:

  • 0% on annual income up to XAF 1,500,000 (approx. 2,280 EUR)
  • 10% on XAF 1,500,001–3,000,000 (4,573 EUR)
  • 15% on XAF 3,000,001–6,000,000 (9,146 EUR)
  • 20% on XAF 6,000,001–12,000,000 (18,262 EUR)
  • 25% on income above XAF 12,000,000 (18,262 EUR).

The tax residence 

A tax resident is an individual who: 

  • has a place of business in Gabon, or 
  • has a place of residence permanently available to an individual’s family members, or 
  • is physically present in Gabon at least 183 days in any 12-month period 

Social security contributions (sickness, maternity and retirement pensions scheme)

Employees must contribute to the social security system (National Social Security Fund (CNSS) together with the employer.

The taxable basis is made up of gross salaries, including indemnities considered as elements of the salary and any benefits in kind. However, there is an annual ceiling of XAF 18 million (approx. 27,440 EUR) (or XAF 1.5 million per month (approx. 2,280 EUR)).

The allowances for professional expenses are excluded from the taxable basis, subject to the fact that they are used according to their purpose and that they are not exaggerated. The employees pay 2.5% for the CNSS retirement insurance and 1% for the National Disease Insurance and Social Guarantee Fund (CNAMGS) health insurance.

Tax treatment for non-residents

Non-residents are subject to IRPP and social security contributions (except for end-of-service indemnity scheme contribution) at the same rates that apply to residents.  

Employer taxes and contributions

Social security contributions

The other social security contributions represent 20.1% of the taxable salary. They are paid by the employer according to the following apportionment:

  • Family allowances: 8%.
  • Retirement insurance: 5%.
  • Work injury: 3%.
  • Health sanitary evacuations: 0.6%.
  • Medicines’ distributions: 2%.
  • Hospitalisations: 1.5%.

The employer is the debtor before the CNSS for the payment of the total social security contributions, including the portion due by the employees, which is withheld monthly on each employee’s salary.

Employment Regulation

Sources of labor law

Hiring

Working time & time off

Compensation & Benefits

Termination

Sources of employment law

https://journal-officiel.ga/17956-022-2021-/
https://eplex.ilo.org/fr/node/73258?code=GAB&yr=2025

The main sources of employment law in Gabon are as follows: 

  • the Constitution of Gabon
  • the international convention(s) 
  • the employment legislation of Gabon
  • the company internal regulations 
  • the collective bargaining agreement(s) 
  • the employment agreement(s) 

The main employment legislation in Gabon includes: 

  • The Constitution of Gabon (2024): Establishes the framework for governance and protects rights related to property and business
  • the Labor Code of Gabon (Code du Travail), Law No. 022/2021 of 19.11.2021

Hiring of employees

Types of employment agreements

There are two main types of employment agreements in Gabon: 

  • Indefinite employment agreements 
  • Fixed-term employment agreements 

The indefinite employment agreement has no termination date. Under the indefinite employment agreement, employment relations can be terminated based on the termination grounds envisaged by the law by the notice of either party. 

Under the fixed-term employment agreement, an employee can be employed for a specific term or duration of a project. The fixed-term employment agreement ends either on the termination date or upon completion of a project / a specific task.  

A fixed-term employment contract, the end date of which is precisely determined at the time of its conclusion and by mutual agreement of the parties, must be concluded in writing and contain the period of validity and a precise definition of its purpose. Its period of validity may not exceed two years, including any renewals. If this period is exceeded, the contract is automatically reclassified as indefinite.

A fixed-term employment contract, regardless of its purpose, cannot be used to permanently fill a position tied to the company’s normal and ongoing activities. If the contract continues beyond its term, even tacitly, by the will of the parties, it automatically becomes an indefinite-term contract, despite any clause prohibiting such continuation. 

Legislation: The Labor code, Art 23.

Minimum provisions of the employment agreement

The contract must necessarily contain the following statements:

  • The number of the identity cards of each of the contractors and the number of the workbook
  • Names, first names, nationality, age, sex, occupation, marital status
  • Accurate indication of the worker’s residence
  • The duration and schedule of the working day
  • Nature of work to be performed
  • Place or places where the contract will be performed
  • Wage
  • Signatures of the contracting parties or the affixing of fingerprints accompanied by the signature of two witnesses for the party that cannot or does not know how to sign
  • places and date of the conclusion of the contract
  • the period during which the employee will be on probation.

Minimum age for employment in Gabon in the industrial, agricultural and commercial enterprises is 16 years. Any employer shall have a legal identification document with a picture mentioning the age of the employees.

Legislation: The Labor code, Arts 7, 32.

Non-competition clause 

Non-compete clauses regulated by current legislation of Gabon. 

A non-competition clause is defined as any provision prohibiting an employee from engaging in any activity that constitutes unfair competition with the employer. An employee is obligated to perform all professional activities in the interests of the company, unless otherwise specified in the employment contract.

Any clause in the contract prohibiting an employee from engaging in any activity after the contract’s expiration is invalid. In the event of contract termination, this clause remains in effect if the termination is initiated by the employee or is the result of a gross violation on their part. However, in these cases, the prohibition may only apply to activities that constitute unfair competition with the employer. This prohibition may not exceed twelve months and may only apply within a five-kilometer radius of the workplace.

Legislation: The Labor code, Art 52.

Written employment agreement

A written format for an employment agreement is not obligatory. 

The Labor Code of Gabon allows oral contracts and has a provision for resolving disputes over salary and wages in a verbal agreement. If there is no available proof stipulating the wages, the employee’s salary is required to be equal to the rate of other employees in the same region who do the same or similar work. All forms of proof are accepted to establish the existence of the verbal contract.

Legislation: The Labor code, Arts 20.

E-employment agreement

Electronic signatures are legally recognized and supported in Gabon under Law No. 025/2021, which governs electronic transactions, establishing a legal framework for e-commerce and digital signatures to have full evidentiary weight, promoting digital trust, and aligning with international standards for secure digital interactions in the growing digital economy.  

Legislation: Law No. 025/2021 of 28 December 2021

Language requirement for employment agreement 

The individual employment contract, when it is written, shall be drafted in French in two originals, one of which shall be given to each of the contracting parties.

Hiring checks 

Medical check 

In Gabon, medical checks for employees are a legal requirement, especially pre-employment, to ensure fitness for work, covering general health, fitness, and identifying risks, often via a medical certificate required for contracts, with the social security system covering healthcare, but employers handle uncovered care and sick pay, necessitating proper health assessments. 

Criminal background check

A criminal background check can be conducted with certain restrictions, subject to personal data protection laws.  

References and education background checks

References and education background checks are generally allowed, subject to personal data protection laws and privacy restrictions. Background checks, including references and educational verifications, are part of the due diligence process, especially for citizenship by investment and employment. These checks help verify an applicant’s background, ensuring they are of good character and have a clear hist.

Probation period  

An individual employment contract or collective agreement may not provide for a probationary period, including an extension exceeding six months for managers, three months for technicians and foremen, and one month for rank-and-file and other employees. The length of the probationary period is determined by the actual work performed.

Legislation: The Labor code, Art 49.

Working time and time off

Regular working hours

Working hours are the time during which an employee performs their duties. In all public or private, educational, or charitable institutions, statutory working hours may not exceed 40 hours per week.

Actual working hours are defined as the time during which an employee is at the employer’s disposal and carries out their instructions, without the opportunity to engage in personal activities. The daily standard of 40 hours per week may be freely determined depending on the sector of activity. If the normal activities of the enterprise require working hours outside of daytime hours, then such hours are paid at the established rate. In all agricultural and similar enterprises, working hours are 2,400 hours per year. Within this limit, working hours are established by industry-wide collective agreements.Legislation: The Labor code, Arts 195-197.

Overtime working hours

In Gabon, overtime compensation varies based on the type of pay structure an employee has. The general approach to calculating overtime is governed by the Labour Code, which stipulates enhanced pay rates depending on the nature of the work and the timing:

  • Hourly: Hourly employees receive at least 150% of their regular hourly rate for any overtime hours worked.
  • Salaried: For salaried employees, overtime pay is calculated based on their implied hourly rate (annual salary divided by the total number of expected working hours in a year). Overtime rates apply similarly to those of hourly workers.
  • Piecework: Employees paid on a piecework basis earn overtime based on a calculated hourly rate derived from their average earnings over the standard working hours.
  • Commission: Employees earning commissions are entitled to overtime calculated on a similar basis to salaried employees, with additional earnings factored into the average hourly wage.

Legislation: The Labor code, Arts 195-197.

Annual leave

Unless otherwise provided by contract, employees are entitled to paid leave at the employer’s expense at a rate of 2 working days per month of actual service. Employees under the age of 18 are entitled to 2.5 working days.

The above provisions also apply to part-time employees.

The basic leave period may be divided by the employer with the employee’s consent, beginning on the date the leave entitlement becomes valid after 12 months of actual service with the company. Splitting is permitted only for periods exceeding at least six working days.

Leave entitlement increases depending on the length of service with the company. It is determined by current regulations or collective agreements but may not exceed a maximum of 2months.

Legislation: The Labor code, Arts 222-224.

Additional leave  

A mother is entitled to 1 additional day of leave per year for each dependent child under the age of 16.

In the case of death in the immediate family, i.e. father, mother, sister, brother, husband, wife, children and relatives in the immediate household, and on application by the employee, leave of absence of two days with pay may be granted by the employer. 

Legislation: The Labor code, Art 222-224.

Sick leave

Employees are entitled to up to 6 months of paid sick leave per year, based on medical justification and eligibility for social security coverage. Employees are entitled to sick leave if they are unable to work due to illness. The employer is not obligated to pay for the first 3 days of sick leave. After the third day, the employee is eligible for compensation through the National Social Security Fund (CNSS). Sick leave payments generally cover around 50% of the employees’ wages after the initial waiting period.

Parental (maternity/ paternity) leave

Maternity leave

Every pregnant woman shall, on production of a medical certificate indicating the expected date of her confinement, be entitled to a maternity leave during which she shall be paid as if she were continuing to work.

Expectant mothers (who have worked for 12 consecutive months) are entitled to up to 14 weeks (6 weeks pre- and 8 weeks post-birth), with partial wage replacement and job protection.Legislation: The Labor code, Art 208.

Paternity leave

Paternity leave in Gabon provides a statutory entitlement of up to 3 consecutive days of leave following the birth or adoption of a child. The employee must inform their employer at least one month before the expected date of delivery, and the leave is fully paid during this period.

Parental leave

There is no statutory parental leave in Gabon.

Public holidays

The public holidays in Gabon are as follows: 

Fixed-Date Holidays

  • January 1: New Year’s Day
  • April 17: Women’s Day (Women’s Rights Day)
  • May 1: Labour Day (International Workers’ Day)
  • August 15: Assumption Day
  • August 16-17: Independence Days
  • August 30: National Liberation Day (variable date)
  • November 1: All Saints’ Day
  • December 25: Christmas Day 

Variable-Date Holidays (Examples from 2025)

  • Easter Monday: (e.g., April 21, 2025)
  • Eid al-Fitr: (End of Ramadan)
  • Eid al-Adha: (Feast of Sacrifice)
  • Ascension Day: (40 days after Easter)
  • Whit Monday: (Monday after Pentecost) 

Compensation

Statutory minimum salary

Gabon has a government-mandated minimum wage. No worker in Gabon can be paid less then this mandatory minimum rate of pay. Employers in Gabon who fail to pay the Minimum Wage may be subject to punishment by the government of Gabon.

Gabon’s minimum wage is 150,000 XAF (approx. 228 EUR).

https://wageindicator.org/salary/minimum-wage/gabon

13, 14th salaries

In Gabon, there’s no legal requirement for 13th or 14th month salaries, but they can be paid as customary bonuses or per company policy/Collective Bargaining Agreements (CBAs), often around year-end as a Christmas bonus, with payment terms depending on individual employer agreements, not strict laws.  

Bonuses

Employers in Gabon may offer discretionary or contractual bonuses to their employees. The provision of bonuses is a common practice. 

Payroll frequency

The payroll cycle in Gabon is usually monthly, with employees being paid as stipulated in employment contract. 

Salary currency

Salary must be paid in a national currency – Franc CFA de l’Afrique centrale (XAF). 

Benefits

Mandatory benefits

Employees are provided with the following mandatory statutory benefits, which cover:

  • sickness benefit
  • maternity benefit
  • employment injury benefits
  • disablement benefit
  • medical expenses
  • invalidity benefit

Voluntary benefits

In addition to the mandatory statutory benefits, employers usually provide their employees with the following benefits: 

  • private health insurance 
  • education allowance 
  • food allowance 
  • participation in the company’s schemes (e.g., bonuses schemes), etc. 

Grounds for termination

Employment relations can be terminated: 

  • at the employer’s initiative 
  • at the employee’s initiative 
  • by mutual consent of the parties 
  • on expiry of a fixed-term employment agreement 

Employment relations can be terminated at the employer’s initiative based on the following grounds: 

  • with notice 

Employers can terminate employment for just cause or through dismissal. Just causes of dismissal include serious misconduct, poor performance, or redundancy. However, employers must provide proof of the reason for dismissal.

  • without notice 

Termination for serious misconduct typically allows the employer to dismiss the employee without observing the standard notice period or paying severance indemnity. However, the employer must still follow the correct disciplinary and termination procedures.

Examples can include:

  • Serious insubordination or refusal to follow legitimate instructions.
  • Theft, fraud, or dishonesty.
  • Serious negligence causing significant harm to the employer.
  • Repeated or persistent minor misconduct despite warnings.
  • Physical violence or harassment in the workplace.

Employment relations can be terminated at the employee’s initiative based on the following grounds: 

  • with notice 

An employee who wishes to terminate his employment contract without any liability for himself shall inform the employer within the time limits established by law.

  • without notice 

Employees can initiate dismissal (resign) without notice for serious employer misconduct, like violating dignity or fundamental rights, allowing for a “constructive dismissal,” but generally, employees must give notice.

Employment contract in Gabon can be suspended for various reasons, including employee-initiated leave (like parental leave or caregiving), employer-led investigations (requiring labor inspector approval for protected workers), economic reasons, or mutual agreement, with specific rules on duration and compensation depending on the situation.

 Employment relations can be terminated by mutual consent of the parties, provided that the employee’s consent is documented in writing. 

Employment relations are terminated on the expiry date of the fixed-term employment agreement or when the project is ended. Fixed-term employment agreements are not subject to the requirements regarding advance notice and termination compensation. 

Legislation: The Labor code, Arts 57-85.

Notice period

The employer or the employee who wishes to terminate the written employment contract must first give notice to the other party. The length of the notice period is determined depending on the employee’s length of service in the company. It is set as follows:

  • up to one year: 15 days
  • from 1 year to 3 years: 1 month
  • from 3 to 5 years: 2 months
  • from 5 to 10 years: 3 months
  • from 10 to 15 years: 4 months
  • from 15 to 20 years: 5 months
  • from 20 to 30 years: 6 months
  • for employees over 30 years of age, an additional ten days are granted for each year of service.

The above-mentioned time limits are mandatory minimums for the contracting parties. However, collective agreements and individual employment contracts may provide for more favorable provisions, considering the professional qualifications of the employee.

Legislation: The Labor code, Art 82.

Severance payment

This does not require a minimum tenure and provides compensation based on seniority, calculated at 20% of the average gross monthly salary over the last 12 months per year of continuous service.

Immigration procedure for expatriate employees

Permits to hire expatriate employees

Work permits in Gabon are regulated under the Gabonese Labor Code and overseen by the Ministry of Labor, Employment, and Vocational Training, in collaboration with the Directorate of Immigration.

Any foreign national wishing to engage in paid employment must secure the appropriate authorization. Working without a valid permit may result in fines, deportation, or restrictions on future entry.

Here are some general types of work permits that might be available:

Investor or Business Permit. Applicable to foreign investors or entrepreneurs establishing and actively managing a business in Gabon. This permit allows the holder to engage in employment directly related to their investment.

Temporary Work Permit. Issued to foreign nationals employed by a registered Gabonese company for a specific role and duration.

Special Skills Permit. Granted to professionals with expertise that is scarce in the local labor market, including engineers, IT specialists, healthcare professionals, and financial experts.

Procedure & Timeline

The procedures and timelines for hiring expatriate employees in Gabon typically involve several steps.

However, it’s crucial to note that these processes can be subject to change, and it is recommended to check with the Ministry of Labor, Employment, and Vocational Training or seek advice from legal professionals for the most up-to-date information. Here’s a general outline of the procedure:

Procedure:

Job Offer: Letter from employer stating the following: type of employment, wages (daily, weekly, monthly); accepting responsibility for employees; and offer of employment for one year in the first instance

Work Permit Application:

  • The employer initiates the work permit application process.

The employer submits the necessary documents to the Ministry of Labor, Employment, and Vocational Training

Document Submission:

  • The required documents may include the job offer, proof of the expatriate’s qualifications, and possibly medical examinations, proof that the position cannot be filled by a Gabonese citizen
  • Documents may need to be translated into French.

Review and Approval:

  • The Ministry of Labor, Employment, and Vocational Training reviews the application.
  • If approved, the work permit is issued.

Medical Examination: Some categories of workers may need to undergo a medical examination.

Security Clearance: Depending on the nature of the job, a security clearance may be required.

Issuance of Work Permit: Once all requirements are met, the work permit is issued.

 Timeline:

  • The timeline for obtaining a work permit can vary. It may take several months, depending on the completeness of the documentation, the specific category of work, and any additional requirements.
  • Employers are advised to initiate the work permit process well in advance of the intended start date for the expatriate employee.

Note:

It’s important to stay informed about any changes in immigration and labour laws in Gabon

Different categories of workers (e.g., regular employees, self-employed individuals, artists) may have specific requirements and procedures.

Documents required for the application

The documents required to hire expatriate employees in Gabon can vary based on the type of employment and the specific circumstances.

However, here is a general list of documents that are commonly required during the work permit application process:

  1. Job Offer Letter: Letter from employer stating the following: type of employment, wages (daily, weekly, monthly); accepting responsibility for employees; and offer of employment for one year in the first instance
  2. Proof that the position cannot be filled by a Gabonese citizen
  3. Police report: A statement from the Commissioner of Police of the applicant’s home state setting out the applicant’s police record
  4. Two (2) passport-size photographs
  5. Photocopy of Treasury receipt as proof of payment of application fee
  6. Marriage Certificate
  7. Valid passports (passports must be valid for up to six months at any given time)
  8. Extension of stay is required until permit is approved
  9. Photocopy of passport bio-data page
  10. If self-employed – Bank Statement and Certificate of Registration

It’s important to note that the specific requirements can vary based on the type of work and the industry. Additionally, immigration laws and requirements are subject to change, so it’s advisable to check with the Ministry of Labor, Employment, and Vocational Training or consult legal professionals for the most up-to-date information.

Costs

The fees and costs associated with hiring expatriate employees in Gabon can vary based on several factors, including the type of work permit, the duration of the employment, and the industry.

In general permit costs vary, with fees around 120-250 EUR for initial permits.It’s important to note that immigration regulations and fees are subject to change, so it’s advisable to check with the relevant authorities or consult legal professionals for the most up-to-date information.  

 It’s essential to check with the Ministry of Labor, Employment, and Vocational Training for the most accurate and current information regarding fees and costs. Additionally, consulting with immigration experts or legal professionals who specialize in Gabon immigration laws can provide valuable guidance tailored to your specific situation.

Work visa

To get a Gabon work visa, employer must first secure a work permit from the Ministry of Labor, Employment, and Vocational Training and an entry authorization, after which person may apply at a Gabon embassy.

  • There are the following types of visas:
  • Temporary Work Visa. Apply for short-term employment contracts (up to 12 months). Project-based work assignments or seasonal employment opportunities.
  • Long-term Work Visa. Apply for permanent employment contracts, multi-year project assignments, senior management positions, specialized technical roles.
  • Intra-company Transfer Visa. Apply for transfers within multinational corporations, management and executive positions, specialized knowledge workers, training and development assignments.
  • Self-Employment Visa. Apply for entrepreneurs and business owners, independent contractors and consultants, professional service providers, investment-based employment

These visas also come in e-visa types that your employees can pay for and receive when they arrive in Gabon.

To apply for Gabon’s work visa, person typically needs the next documents:

  • Valid passport with minimum 18 months validity
  • Completed evisa application forms
  • Recent passport-sized photographs
  • Educational certificates and diplomas
  • Professional qualifications and certifications
  • Work experience letters and references
  • Medical certificate and health screening
  • Police clearance certificate
  • Curriculum vitae and professional portfolio
  • Proof of accommodation arrangements
  • Health insurance coverage
  • Return ticket or travel arrangements
  • Financial capacity documentation
  • Character references and recommendations

Employer Documents:

  • Business registration and operating licenses
  • Tax compliance certificates
  • Social security registration
  • Employment contract or job offer letter
  • Labor market test documentation
  • Company financial statements
  • Organizational chart and employee roster
  • Justification letter for foreign worker hiring

The processing time of a Gabon is visa differs from applicant to applicant. The estimated processing time is 6-8 weeks. However, due to high demand and secondary checks, you might need to wait a little longer.
Gabon offers visas with a fee up to 100 EUR. Fees are subject to change, so it’s best to verify the most current costs on the official source or at the port of entry.

https://evisa-gabon.com/work-visa/