The verdict in three sentences
As long as your commissions stay modest, informal trading is enough; past roughly 5M FCFA of commissions per year, registering pays off to deduct expenses and invoice large accounts. With CIPC in South Africa, incorporation is fast and low-cost, with flexible share capital. The right choice — private company, one-person structure or sole trader — depends on your commission volume and your wish to protect personal assets.
Registration 2026: real costs and timelines
A one-stop registration bundles company number, tax registration and social registration in a single pass. Here are the 2026 orders of magnitude, quoted in FCFA for regional comparison.
| Item | Sole trader | One-person company | Private company |
|---|---|---|---|
| Registration fees | 15,000 FCFA | ~30,000 FCFA | 40,000 to 45,000 FCFA |
| Minimum capital | 0 | 100,000 FCFA | 100,000 FCFA |
| Real one-stop timeline | 24 h | 48 h | 48 to 72 h |
| Liability | unlimited | limited to contributions | limited to contributions |
| Number of partners | 1 | 1 | 2 or more |
Capital is “flexible” but an amount of 100,000 to 1,000,000 FCFA reassures banks and large accounts. For an institutional referrer pitching executives, a registered company is far more credible than informal status.
Taxation and annual obligations
Incorporation is cheap; what weighs is annual operation. Here is the tax comparison (2026 order of magnitude).
| Criterion | Sole trader | Company |
|---|---|---|
| Taxation | personal income / simplified | corporate 25 % (common law) |
| Accounting | light | mandatory annual accounts |
| Accounting cost/year | 100,000 to 250,000 FCFA | 300,000 to 600,000 FCFA |
| Expense deduction | limited | prospecting costs deductible |
| Recommended switch threshold | < 5M FCFA commissions/year | > 5M FCFA commissions/year |
The simple rule: below ~5M FCFA of annual commissions, the sole trader is cheaper on accounting. Above that, a company lets you deduct travel, phone and prospecting, and protects your personal assets.
Mini case study
Adjoua, a referrer, collects 6M FCFA of commissions in 2026. As a sole trader she is taxed on almost all of it without deducting her 800,000 FCFA of prospecting costs. She incorporates a one-person company: ~30,000 FCFA in fees, 100,000 FCFA capital, registered in 48h. She now deducts real expenses and her taxable base drops from 6M to ~5.2M FCFA. Even after 400,000 FCFA of annual accounting, she comes out ahead and invoices institutional clients cleanly (estimate).
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The Kolonell referral program
Registering means collecting bigger commissions with full compliance. The Kolonell referral program pays across all 4 tiers:
- Website: 15 % + 5 % recurring.
- E-commerce: 12 %.
- Marketplace: 10 %.
- Institutional: 8 % (tickets 5 to 25M FCFA).
A registered referrer can confidently target institutional deals: a company inspires trust in an executive, and a commission of 400,000 to 2,000,000 FCFA per contract easily justifies the structure's costs.
FAQ
How much does incorporation really cost? Between 15,000 FCFA (sole trader) and 45,000 FCFA (private company), excluding share capital. One-stop registration wraps up in 24 to 72h (2026 order of magnitude).
What minimum capital for a private company? Legally 100,000 FCFA, but capital of 100,000 to 1,000,000 FCFA strengthens your credibility with banks and large accounts.
When should I move from informal to a company? Around 5M FCFA of commissions/year: beyond that, expense deduction and asset protection make a company worthwhile despite the accounting.
Sole trader or company? The sole trader is cheaper but carries unlimited liability. A company limits your risk to contributions and lets you deduct prospecting costs.
Do I need an accountant? For a company, yes: annual accounts are mandatory, count 300,000 to 600,000 FCFA/year. As a sole trader, light bookkeeping is often enough.
Let's talk about your project. Structure your referrer activity and sign institutional tickets with Kolonell. 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.
