How to Register a Sole Proprietorship (Individual Business) in The Gambia

Many freelancers and independent contractors consider forming a sole proprietorship in The Gambia because it is one of the least complex business forms available. You don’t need to incorporate a full company, and you retain full control of your income, decisions, and operations. The process leans more administrative than bureaucratic, but you must still navigate registration with governmental agencies.

The main challenges are ensuring your tax registration is complete (especially obtaining a TIN), understanding VAT obligations, and keeping up with municipal licensing. The key benefits are low setup cost, minimal corporate compliance, and flexibility to contract with clients worldwide.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Always consult official sources or seek professional guidance before taking action.

What is a sole proprietorship in The Gambia?

In The Gambia, a sole proprietorship is commonly referred to as a sole proprietorship or individual business. It is sometimes described as a “sole trader,” “self-employed worker,” or “independent contractor.” These all refer to the same model: a single person running a business in their own name without forming a separate company.

How does a sole proprietorship (individual business) work in The Gambia?

Sole proprietorship vs. other business structures in The Gambia

There are other structures available in The Gambia, such as limited companies and partnerships. If you’re considering future growth or want to limit your liability, these may suit you better. Below is a comparison of how each option differs.

Step-by-step guide: How to register a sole proprietorship in The Gambia

Step 1: Check your eligibility

Citizens of The Gambia aged 18 or older with a valid national ID, passport, or driver’s license can register a sole proprietorship. Residents may also apply using valid residence documentation, while foreign nationals must comply with immigration and work-permit rules and, if applicable, obtain business approval from the Gambia Investment and Export Promotion Agency (GIEPA).

Step 2: Choose your business name

You may operate under your own name or a business/trade name. Before filing, you must reserve or clear your chosen name with the Companies Department at the Ministry of Justice to ensure it isn’t already in use. You can perform a name search and reservation online through the Single Window Business Registry or in person at the Companies Department offices in Banjul or Kanifing.

Step 3: Gather required documents

You’ll need:

• Valid identification (ID card, passport, or driver’s license)
• Tax Identification Number (TIN) card or proof of application
• Completed registration form (Form SWR 3)
• Copies of identity documents
• Proof of business address (if required by your municipality)

Step 4: Register with the Ministry of Justice (Companies Department)

You can register your sole proprietorship either online through the Single Window Business Registry (SWBR) or in person at the Companies Department in Banjul or the Kanifing Municipal Council office. While the SWBR system supports digital submissions, most registrations are still finalized in person due to document verification and payment requirements. Once you've completed Form SWR 3 and supporting documents are approved, you’ll receive your Business Registration Certificate, usually within one business day.

Step 5: Pay registration fees and contributions

After your documents are accepted, you’ll pay the standard registration fee of GMD 500. Payments are made directly at the Companies Department cashier. After payment, your registration certificate will be issued, and you’ll be officially recognized as a business. Depending on your business type and location, you may later need to pay for a municipal trade license or other local permits.

Step 6: Complete post-registration obligations

Once registered, you must enroll for taxation with the Gambia Revenue Authority (GRA) using your TIN. File income-tax returns on time (usually annually), and if your turnover exceeds GMD 2 million, register for VAT at 15 %. Keep accurate accounting and invoicing records — including all issued and received invoices, receipts, and financial statements — for audits or reviews. Invoices should be sequentially numbered and include your business details, date, description, and amounts, in line with GRA requirements. You must also renew local trade licenses each year and notify the authorities if your business details change or if you stop trading.

Financial and tax obligations for sole proprietors in The Gambia

You're responsible for:

• Personal income tax (business profits): Sole proprietors pay Personal Income Tax through the GRA. Tax is progressive, based on net profit, or based on turnover — 1% (audited), 2% (unaudited), or 3% for turnover under GMD 500,000.
• VAT: The standard VAT rate is 15% on taxable goods and services. Businesses with annual taxable supplies of GMD 2,000,000 or more must register for VAT. Businesses with taxable supplies of D1, 000, 000 and above in a tax year may voluntarily register. Exports are zero-rated.
• Social security contributions: Sole proprietors are not required to register with the National Social Security and Housing Finance Corporation (NSSHF) unless they employ staff. If you hire employees, you must register them with the NSSHF and contribute 10% of their basic salary, while employees contribute 5%, both remitted monthly.
• Record-keeping: Maintain all invoices, receipts, books of accounts, and bank statements. The GRA can audit these at any time.
• Invoicing: VAT-registered businesses must issue sequentially numbered invoices showing name, address, VAT number, description of goods or services, date, and VAT amount. The GRA is rolling out a digital e-invoicing system, requiring electronic invoice submission for many sectors by 2025.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a sole proprietorship in The Gambia?
There is no minimum capital requirement—you can start your business with any amount of working capital.

Do sole proprietors need to register for VAT?
Only if your annual taxable turnover exceeds GMD 2,000,000. You may register voluntarily if between GMD 1,000,000–2,000,000.

How much are the standard registration fees?
Business registration costs GMD 500. Additional trade license fees depend on the municipality and activity type.

Can a sole proprietor hire employees?
Yes. You must register employees for Social Security and PAYE (income tax withholding) through the GRA.

How long does it take to register?
Usually, one business day once your documents and payment are in order.

Can foreign nationals register as sole proprietors in The Gambia?
Yes. Foreigners can register, but they must obtain residence and work permits through the Ministry of Interior and comply with GIEPA investment regulations.

Do sole proprietors need a separate business bank account?
Not mandatory, but highly recommended to separate personal and business finances for accounting and tax clarity.

What happens if I stop operating?
You must notify the Companies Department to deregister and file your final tax return with the GRA. Close business bank accounts and cancel trade licenses.

Are there any government incentives for new sole proprietors?
The Gambia Investment & Export Promotion Agency (GIEPA) may offer investment incentives such as duty exemptions or reduced taxes for qualifying small businesses and start-ups.

Can I use Deel as a sole proprietor to get paid by international clients?
Yes. Deel enables you to receive payments from clients worldwide in multiple currencies, with low fees and transparent exchange rates.

Does Deel generate compliant invoices for sole proprietors?
Yes. Deel automatically generates compliant invoices that meet Gambian tax requirements.

Can Deel help with taxes as a sole proprietor in The Gambia?
Deel provides downloadable payment reports and tax summaries to simplify your annual filing and bookkeeping.

Does Deel offer compliant contracts for freelancers and sole proprietors?
Yes. Deel includes locally compliant contract templates, helping you work safely and professionally.

Can I access benefits through Deel?
Yes. Deel offers optional benefits, including health insurance and retirement plans, usually only available to employees.