How to Register a Sole Proprietorship (Entreprise Individuelle) in Togo

Many freelancers and small business owners in Togo choose a sole proprietorship because it offers a fast, affordable way to formalize their activity and access the benefits of operating legally. The process is relatively straightforward, supported by reforms designed to simplify registration for small enterprises. Togo also offers simplified tax regimes, such as the “régime du forfait”, which allows small businesses below certain turnover thresholds to pay a fixed, predictable tax instead of filing detailed profit declarations.

While setting up is easier than forming a company, new entrepreneurs still need to handle key steps like preparing documents, registering with tax and social security authorities, and keeping accurate records. The main challenges lie in staying compliant and organized, but the rewards are significant—legal recognition, the ability to issue official invoices, simplified taxes, and greater credibility when working with clients or institutions.

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

What is a sole proprietorship in Togo?

In Togo, a sole proprietorship is officially called an entreprise individuelle (EI).

You may also see it referred to as:

• Sole trader
• Self-employed worker
• Independent contractor

These terms all point to the same business model: a single individual running business activity without forming a separate legal entity.

How does a sole proprietorship (entreprise individuelle) work in Togo?

Entreprise individuelle vs. other business structures in Togo

There are alternatives to operating as an Entreprise Individuelle, such as forming a limited liability company (SARL). Below is a comparison to help you decide which structure better suits your needs.

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

Step 1: Check your eligibility

Togolese citizens can register easily as sole proprietors, provided they have full legal capacity. Residents from the Economic Community of West African States (ECOWAS, a regional bloc that allows free movement and business activity among its 15 member countries, including Togo) follow the same simplified process. Foreign nationals from outside ECOWAS can also register, but they must hold a valid residence or work permit and provide proof of address in Togo.

Step 2: Choose your business name

You can trade under your own name or a registered trade name. If using a commercial name, you will need to ensure it is not already in use. You can use the CFE name search tool to confirm availability.

Step 3: Gather required documents

Typical documents needed include:

• A completed business registration form (CFE form)
• Copy of identity document (national ID, passport)
• Proof of address or residence permit
• Certificate of no criminal record
• Photograph(s)
• Where applicable, proof of qualifications or licenses for regulated professions

Step 4: Register with the CFE

You submit your completed documents to the CFE, either in person or via the online portal on the CFE website. During registration, you will also be registered with the tax authority to receive a Tax Identification Number (TIN).

Step 5: Pay registration fees and contributions

You must pay a registration fee (typically, around CFA 30,400) under the simplified process for small operators. This fee may vary depending on your status (national, foreign, or the type of activity). Once payment is made and your application is accepted, you’ll receive confirmation of your registration, and your enterprise becomes legally recognized.

Step 6: Fulfill post-registration obligations

After registration, you must issue compliant invoices, maintain accounting records, file periodic tax returns (either under forfait or réel regime), register for VAT if your turnover exceeds the threshold, make social security contributions if you hire employees, and update or amend your registration if you change address or activity.

Financial and tax obligations for sole proprietors in Togo

You are responsible for:

• Income tax: Smaller businesses that qualify for Togo’s simplified regime pay either a fixed annual fee (for turnover up to 30 million XOF) or a turnover-based tax of 2% for trade and production or 8% for services (for turnover between 30 million and 60 million XOF). Sole proprietors taxed under the régime du réel pay 27% on their net business profits under the personal income tax system. Filing is done annually with the Office Togolais des Recettes (OTR).
• VAT (TVA): The standard rate is 18%. VAT registration is mandatory if your turnover exceeds CFA 60,000,000 or if you operate a liberal profession (regardless of turnover). VAT returns are usually filed monthly via OTR’s portal.
• Social security contributions: When you employ staff, you must register them with Caisse Nationale de Sécurité Sociale (CNSS). For sole proprietors, registration is voluntary. Those who opt in typically contribute around 21.5% (salaried workers typically contribute 4%, with their employers paying the remaining 17.5%) of their declared income, which covers pensions, family benefits, and occupational risk insurance.
• Record-keeping: You must maintain accurate accounting records, including invoices, receipts, and transaction ledgers. Documents should be stored for at least five years, as tax authorities may audit that period.
• Invoicing: Each invoice must include your TIN, business name, client details, date, description of services or goods, and applicable VAT if you’re VAT-registered. Invoices must be sequentially numbered and kept for your records.

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• Automate invoicing and expense tracking with essential Bookkeeping tools
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FAQs

What is the minimum capital required to start an entreprise individuelle in Togo?
There is no formal minimum capital requirement.

Do entreprise individuelles need to register for VAT?
Yes, if your turnover exceeds CFA 60,000,000 or if you are in a liberal profession, you must register and charge VAT.

How much are the standard registration or annual contributions?
The registration fee is around CFA 30,400 under simplified process. It may differ depending on your nationality or business activity. The registration fee for registering a sole proprietor in Togo is CFA 25,400 for Togolese citizens and nationals of the Economic Community of West African States (ECOWAS)—the bloc of 15 West African countries, including Ghana, Nigeria, Benin, and Côte d’Ivoire. For non-ECOWAS foreign nationals, the fee is CFA 30,400. These rates are set by the CFE and cover the full registration process under the simplified single-window system.

Can an entreprise individuelle hire employees?
Yes, but you must also register those employees with CNSS and withhold/pay social security contributions.

How long does it take to register as an entreprise individuelle in Togo?
Typically, it can be completed in one day or within a few days under the streamlined process.

Can foreign nationals register as an entreprise individuelle in Togo?
Yes, foreign nationals can register, though they generally must provide valid residency permits or visas and proof of address.

Do entreprises individuelles need a separate business bank account?
It is not legally mandated, but is strongly recommended for clarity and ease of accounting.

What happens if I stop working as an entreprise individuelle?
You must deregister with the CFE, settle final tax and social contributions, and file final returns with the tax authority.

Are there government incentives or reduced rates for new entreprise individuelle?
There are no widely documented general incentives specific to sole proprietors; incentives may apply sector-by-sector under investment codes.

Can I use Deel as an entreprise individuelle to get paid by international clients?
Yes. Deel allows sole proprietors and freelancers to receive payments from clients worldwide, in multiple currencies, with low fees and transparent exchange rates.

Does Deel generate compliant invoices for entreprise individuelle?
Yes. Deel’s invoicing tool supports legally compliant formatting and includes your TIN and business name.

Can Deel help me with taxes as a sole proprietor in Togo?
Yes. Deel offers downloadable tax reports and transaction records you can use when preparing your returns. While it doesn’t replace an accountant, it simplifies your compliance tasks.

Does Deel offer contracts for freelancers and entreprise individuelle?
Yes. Deel provides contract templates compliant with local laws to protect both you and your clients.

Can I access benefits through Deel as an entrepriseindividuelle?
Yes. Deel offers optional benefits such as health insurance, retirement plans, and other perks, giving freelancers coverage beyond what they often can access on their own.