Togo Market Entry

Togo Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

The situation in Togo is complicated for Czech exporters for many reasons. In addition to the factors operating in all countries of the region (extremely low purchasing power, geographical distance, laboriousness of the case, distrust in the seriousness of the partner, corruption…) there are also specific factors such as orientation towards traditional (primarily Chinese and French) suppliers and the absence of a contractual basis. Establishing a relationship with a local reliable partner (importer, distributor, representative) is a basic condition for successful business. In case of interest, we recommend contacting the honorary consul of the Czech Republic in Togo. Some links to databases of potential sellers and distributors of goods: globaltrade – Togo www.yellowpagesofafrica.com www.listcompany.org We also list the name of the financial evaluation agency and the credit history of the “potential partner”: CreditInfo – volo.creditinfo.com

Forms and conditions of operation on the market

In 2013, the government of Togo created a one-stop shop for new business start-ups. This center, called the Center de Formalite des Entreprises, is where you can submit the necessary documents to register your business. A common type of business entity in Togo is the Togolese limited liability company. Entrepreneurs who plan larger investments can establish a joint-stock company. Foreign legal entities can also establish permanent establishments in the form of a branch office or representative office. Limited Liability Company A Togolese limited liability company is a corporate structure commonly used by entrepreneurs when setting up small businesses in Togo. It requires at least directors and shareholders who can be of any nationality and not domiciled in Togo. A shareholder can also be a natural or legal person. The firm requires a minimum share capital of $1,800. Akciová Spolecnost Tožská akciová společnost is recommended for entrepreneurs who want to invest in Togo in a larger volume. The company must have at least three directors and one shareholder, who can be either natural or legal persons. Requires a minimum share capital of $18,200. Branch Country allows foreign legal entities wishing to do business in Togo to set up branches. A branch in Togo is not considered a separate legal entity and its activities must be defined and controlled by the parent company in Togo. This branch must appoint at least one director of any nationality to represent the company in Togo Representative office Foreign companies are also allowed to set up permanent establishments in the form of a representative office in Togo, but they may not engage in commercial activities. The representative office of the company is authorized to operate in Togo only for two-year periods, which are renewable. The representative office of the company is authorized to conduct market research and promote the activities of the parent company, but to conduct other types of business. Check smber for agriculture and fishing facts of Togo.

Marketing and communication

Due to the limited infrastructure and low level of education in the country, advertising through radio broadcasting, or newspapers and television in the maritime region. Marketing research: Afreak consulting & communication Consulting company: Healy Consultants Newspaper advertising opportunity: Togo-PresseLiberte TV and radio advertising opportunity: Television TogolaiseTV2Zephyr FMRadio Togolaise

Issues of intellectual property protection

The government of Togo solves the basic existential problems of the population, the protection of intellectual property is not one of its priorities. Intellectual property rights are governed by the Bangui Agreement of March 2, 1977, revised in February 1999 and October 2002. This agreement was integrated into the Togolese legal order in the form of Law n ° 2001-013 of November 29, 2001. The country is also a member of the World Intellectual Property Organization (WIPO) and AIPO – the African Intellectual Property Organization arising from the Bangui Agreement of March 2, 1977, which covers 16 African countries. AIPO is represented in Lomé in the form of the Institut national de la propriété industrielle et de la technologie (National Institute for Industrial Property and Technology) (INPIT), established within the Ministry of Industry, Trade. The sale of pirated intellectual property is illegal in Togo, but prosecutions of alleged offenders are relatively rare. Togo occasionally shows the will and ability to crack down on counterfeit medicines and other goods.

Public procurement market

Procurement procedures and outsourcing of public services concluded in UEMOA member states must comply with the principles of free access to public procurement, equal treatment of candidates, mutual recognition, non-discrimination and transparency, thanks to the rationality, modernity and traceability of public procurement procedures and outsourcing of public services). The administration of public contracts within the limits set in the regulations is the responsibility of the National Procurement Commission (CNM). Invitations to tender and award of contracts are published in the national newspaper Quotidien. There are three methods of procurement: unequivocal procurement call for tenders (open to the public as a whole or limited to approved bidders) through negotiation CNM must be involved if public procurement exceeds the following amounts: CFAF 15 million for supplies and services CFAF 50 million for buildings and public works. CNM can turn to a limited number of companies, of which there are at least five, if the value of the contract is between 50 and 100 million CFAF. The Prime Minister must approve the awarding of public contracts exceeding CFAF 100 million, while contracts for lower amounts must be signed by the Minister of Finance and the Minister responsible for the service concerned. Domestic enterprises in which Togolese shareholders have a majority will receive a bonus of 7% of the total points set for the technical document. Where mainly Togo labor is used, companies receive a bonus of 7.5% of the maximum set for a financial document. Finally, if the state contract is awarded to a foreign company, the supplier must conclude at least 30% of the value of the contract with a Togolese company. Production cooperatives of workers,

Togo Market Entry