The verdict in three sentences
As long as you invoice informally, large clients and institutions shut the door: they require a business registration, a tax ID and a compliant invoice. At a one-stop shop, registering a company takes 5 to 10 days and costs 15,000 to 100,000 FCFA depending on the form. A sole proprietorship is enough to start as a referral partner; an LLC becomes useful as tickets and credibility grow.
Sole proprietorship or LLC: the 2026 comparison
The choice depends on volume, risk and the type of clients you target. Here are 2026 orders of magnitude at the one-stop shop.
| Criterion | Sole proprietorship | LLC |
|---|---|---|
| Setup cost | 15,000–30,000 FCFA | 50,000–100,000 FCFA |
| Minimum capital | None | 1,000,000 FCFA (often reduced) |
| One-stop-shop delay | 3–7 days | 7–10 days |
| Liability | Unlimited (personal assets) | Limited to contributions |
| Big-contract credibility | Medium | High |
| Accounting | Light | Annual balance sheet required |
For a starting referral partner, the sole proprietorship minimizes cost and paperwork. As soon as you target e-commerce, marketplace or institutional deals, the LLC reassures and protects your personal assets.
Documents, taxes and business account
A few 2026 administrative benchmarks to budget before invoicing.
| Item | 2026 detail |
|---|---|
| Business registration | Trade register, issued at the shop |
| Tax ID (TIN) | Essential to invoice |
| Business bank account | Opening in 3–7 days |
| VAT | 18 %, liable above a turnover threshold |
| Young-business regime | Possible tax relief in early years |
| Compliant invoice | Registration + tax ID mandatory |
Below the VAT threshold, many partners invoice VAT-exempt, which simplifies year one. Above it, VAT invoicing at 18 % becomes mandatory.
Formalizing to capture Kolonell commissions
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Becoming a referral partner needs no company for a first referral, but a formal structure unlocks recurring commissions and the bigger divisions. With a registration and tax ID, you invoice your Kolonell commissions cleanly — 15 % + 5 % recurring on showcase sites, 12 % on e-commerce, 10 % on marketplaces, 8 % on institutional — and access institutional tickets that require a declared partner.
Mini case study
Ibrahim, a consultant in Accra, wants to move from occasional referrer to agency. He registers a sole proprietorship for 25,000 FCFA in 6 days and opens a business account in 5 days. In year one he invoices 3,200,000 FCFA in commissions (mix of showcase sites plus one marketplace). Below the VAT threshold, he keeps it all tax-free. Total formalization cost: ~40,000 FCFA, i.e. 1.25 % of his revenue — a trivial investment to reach serious contracts.
FAQ
Do you need a company to be a referral partner? Not for a one-off first referral, but yes to invoice regular commissions and access the e-commerce, marketplace and institutional divisions. A sole proprietorship is enough and costs 15,000 to 30,000 FCFA.
How long does registration take? Count 3 to 7 days for a sole proprietorship and 7 to 10 days for an LLC at the one-stop shop. Opening the business account adds 3 to 7 days.
Sole proprietorship or LLC to start? Sole proprietorship for simplicity and low cost; LLC as soon as you target big tickets or want to protect your assets, with liability limited to contributions.
Must I charge VAT? Only above the liability threshold. Below it, you invoice exempt, which lightens your first year. VAT is 18 %.
What documents do I need to invoice legally? Your invoice must carry the business registration and tax ID. Without these, large organizations and institutions will refuse to pay you.
Let's talk about your project. Formalize your activity and become a Kolonell partner to capture big contracts. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
