The verdict in three sentences
Earning a referral commission is the easy part; invoicing it cleanly and declaring it is what trips up most beginners. Informal payment exposes you to withholding tax, unpaid invoices, and the impossibility of billing a company without proper registration. With a registered status and a valid invoice, the commission becomes clean, bankable income you can reuse for credit or expansion.
Informal vs registered: what really changes
Many referrers collect "hand to hand." It works until the client company demands an invoice, until the tax office notices mobile-money flows, or until an unpaid commission leaves no enforceable trace.
| Criterion | Informal payment | Registered, invoiceable status |
|---|---|---|
| Invoice a company | Impossible without registration | Yes, valid invoice |
| Proof if unpaid | None | Enforceable invoice |
| Withholding tax | Suffered, uncontrolled | Anticipated, creditable |
| VAT / income tax | Ignored, risky | Managed by threshold |
| Access to credit | Unprovable income | Declared, bankable income |
| Possible volume | Capped, discreet | Unlimited, scalable |
Registration is the gateway: without it, you can't issue a recognized invoice to a business.
Which status to choose
In Ghana, register with the Registrar General's Department (RGD), then declare income tax on commissions; the payer applies withholding tax. Below a few commissions a year, a sole proprietorship suffices; beyond that, form a proper company.
| Status | For whom | Formalities | Invoicing | Taxation |
|---|---|---|---|---|
| Unregistered | Occasional commission | None | Impossible in B2B | Reclassification risk |
| Sole proprietor | Regular referrer | RGD registration | Yes | Income tax |
| Partnership | Several referrers | RGD + agreement | Yes | Partnership regime |
| Limited company | High volume | Capital, RGD, TIN | Yes, VAT applies | Corporate + VAT |
In Senegal the logic mirrors this: a NINEA (and RCCM for a company) is required to invoice, plus withholding tax and VAT at 18 % above the threshold. The formalization threshold depends on volume; beyond it, a structure protects you and unlocks credit.
Calculating a net commission
Here's what you actually keep under the Kolonell scale, before and after withholding (2026 orders of magnitude; the exact withholding rate depends on your status).
| Sale | Rate | Gross commission | Estimated withholding | Approx. net |
|---|---|---|---|---|
| Growth website 500,000 FCFA | 15 % + 5 % recurring | 75,000 FCFA | ~5 % | ~71,000 FCFA |
| E-commerce Starter 1,000,000 FCFA | 12 % | 120,000 FCFA | ~5 % | ~114,000 FCFA |
| Marketplace 3,000,000 FCFA | 10 % | 300,000 FCFA | ~5 % | ~285,000 FCFA |
| Institutional 8,000,000 FCFA | 8 % | 640,000 FCFA | ~5 % | ~608,000 FCFA |
The 5 % recurring on the website is added every month the client pays maintenance: that's where registered status matters most, because this steady flow must be invoiced.
Mini case study
Kwame, a consultant in Accra, refers 3 Growth website projects in one quarter. Gross commission: 3 × 75,000 = 225,000 FCFA, plus 5 % recurring on three maintenance contracts of 50,000 FCFA/month — that's 3 × 2,500 = 7,500 FCFA/month of residual income.
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Unregistered, he can't invoice any of the three client companies. He registers a sole proprietorship with the RGD, gets his TIN, and invoices cleanly. After estimated withholding (~5 %), he nets ~214,000 FCFA for the quarter, plus the monthly residual — and that declared income opens access to SME financing to scale.
FAQ
Can I invoice a commission without registering?
No, not to a company: registration (RGD in Ghana, NINEA in Senegal) is required to issue a recognized B2B invoice. Without it, you're stuck in the informal economy and exposed to reclassification.
At what amount should I formalize?
As soon as commissions become regular or you invoice companies. A sole proprietorship often suffices; beyond high volume, a limited company with VAT is more suitable.
How does withholding tax work?
The payer may withhold a percentage of your commission and remit it to the tax office. You then credit it against your income tax. On 75,000 FCFA, ~5 % withholding leaves ~71,000 FCFA net.
And in Senegal specifically?
A NINEA to invoice, withholding at source, and VAT at 18 % above the threshold. The principle is identical: beyond a volume threshold, formalize to invoice and access credit.
How much does the Kolonell referral program pay?
15 % + 5 % recurring for websites, 12 % e-commerce, 10 % marketplace, 8 % institutional. A Growth website at 500,000 FCFA = 75,000 FCFA up front plus a monthly residual.
Become a Kolonell referral partner
Structure yourself once, collect cleanly for life. The Kolonell referral program pays on every signed project: 15 % + 5 % recurring for websites, 12 % e-commerce, 10 % marketplace, 8 % institutional. We provide clear quotes, contracts and invoicing so you can declare everything without friction.
Let's talk about your project. We'll help you frame your referral status and your first commissions. 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.
