For professionals considering an individual business setup in Togo, this article details the structure, registration process, and tax regimes associated with the Entreprise Individuelle (EI)—the country’s principal sole proprietorship option for 2025.
Availability of Sole Proprietorship (Entreprise Individuelle) in Togo
The Entreprise Individuelle (EI) is the most accessible and widely used sole proprietorship status in Togo. This structure allows individuals to operate a business under their own name without the need to establish a separate legal entity. In 2025, Togolese nationals and residents can apply for EI status, making it an efficient option for small-scale entrepreneurs and independent professionals.
Key Features of the Entreprise Individuelle
- Legal Form: The EI is not a separate legal entity from the individual; all rights and obligations rest directly with the owner.
- Registration: Required at the Centre de Formalités des Entreprises (CFE), which serves as the central authority for business formalities.
- Accessibility: Open to all citizens and residents, with a streamlined registration process compared to corporate entities.
Taxation Regimes for EI in 2025
Sole proprietors registered as an EI in Togo are subject to taxation under one of two main regimes, based on annual revenue. This approach is intended to simplify tax compliance for small businesses while ensuring integration into the formal tax system.
| Tax Regime | Applicable to Whom | Annual Revenue Threshold (XOF) | Annual Revenue Threshold (USD)* | Description |
|---|---|---|---|---|
| Régime du forfait | Small business owners | ≤ 30,000,000 XOF (services); ≤ 60,000,000 XOF (trading) | ≤ $49,400 (services); ≤ $98,700 (trading) | Fixed tax based on estimated turnover; simplified reporting |
| Régime du réel | Businesses exceeding thresholds | > 30,000,000 XOF (services); > 60,000,000 XOF (trading) | > $49,400 (services); > $98,700 (trading) | Tax assessed on actual profits, standard business reporting required |
*Exchange rate used: 1 USD ≈ 608 XOF
Additional Fiscal Obligations
- Social Security: All EI operators must register for and pay social security contributions as set by Togolese law.
- Reporting: Under the régime du forfait, tax liability is calculated on estimated turnover rather than precise accounting, reducing administrative burden for micro-entrepreneurs.
- Turnover Monitoring: Exceeding the forfait threshold automatically requires transition to the régime du réel, with increased recordkeeping and declaration obligations.
Summary Table: Entreprise Individuelle Requirements in Togo (2025)
| Requirement | Details |
|---|---|
| Business Structure | Entreprise Individuelle (sole proprietorship) |
| Registration Authority | Centre de Formalités des Entreprises (CFE) |
| Eligibility | Togolese citizens and residents |
| Main Tax Regimes | Régime du forfait (fixed turnover-based); Régime du réel (profit-based) |
| Tax Thresholds (XOF / USD) | 30,000,000 XOF / $49,400 (services); 60,000,000 XOF / $98,700 (trading) |
| Social Security | Mandatory contributions |
Pro Tips for Setting Up a Sole Proprietorship in Togo
- Register your EI promptly with the CFE to access official business recognition and stay compliant with 2025 regulations.
- Carefully estimate your expected turnover before choosing a tax regime; the régime du forfait may reduce administration for micro and small businesses not exceeding the threshold.
- Keep all supporting documents organized, even under the simplified regime, to facilitate transition if your revenue grows past the forfait limits.
- Factor in social security contributions as a fixed operating cost when planning your EI’s finances.
- Consult the main sections of official government sources such as cfe.tg or impots.gouv.tg for new developments and online registration options.
Further Reading and Official Resources
- Centre de Formalités des Entreprises (CFE)
- Direction des Impôts du Togo
- International Labour Organization (ILO)
The Entreprise Individuelle remains the most practical legal structure for individual entrepreneurs in Togo. With a straightforward registration process, simplified tax reporting for lower turnovers, and clear administrative pathways, it suits small businesses aiming for compliance and formal operation. However, it is essential to monitor gross revenue to ensure you remain under the correct regime, and to factor in required social security payments. For detailed and up-to-date guidance, always refer to the main government resources linked above.