This article provides a detailed overview of the availability and specific conditions for obtaining sole proprietorship status in Burkina Faso in 2025. It covers registration procedures, tax regimes, liability implications, and links to official government resources.
Availability of Sole Proprietorship Status in Burkina Faso
Sole proprietorship status is fully available in Burkina Faso under the name Entreprise Individuelle (EI). This structure allows any individual to operate a business in their own name, without forming a separate legal entity. The EI is a widely used, straightforward means for starting small businesses and is accessible to Burkinabé citizens as well as foreign residents meeting local requirements.
How Entreprise Individuelle Works
The Entreprise Individuelle is not a separate legal entity—the business and the individual are legally one and the same. As a result, the owner is personally liable for all business debts and obligations. Registration is handled by the Centre de Formalités des Entreprises (CEFORE), which oversees the administrative formalities for starting and formalizing EI status.
Tax Regimes and Thresholds for EI in 2025
The EI is subject to different tax regimes depending on its annual turnover. The available regimes are summarized below:
| Regime Name | Annual Turnover Threshold (XOF) | Annual Turnover Threshold (USD)* | Key Feature |
|---|---|---|---|
| Régime du forfait (Flat-rate regime) | Up to 30,000,000 XOF (services) Up to 50,000,000 XOF (trade) |
Up to $49,000 (services) Up to $81,500 (trade) |
Flat-rate tax determined by tax authority, based on estimated profits |
| Régime du réel simplifié | Above 30,000,000 XOF (services) Above 50,000,000 XOF (trade) |
Above $49,000 (services) Above $81,500 (trade) |
Taxation based on actual turnover and real profits Simplified accounting obligations |
| Régime du réel normal | Typically for larger businesses | N/A | More detailed accounting and tax reporting |
*Exchange rate used: 1 USD ≈ 610 XOF (2025 estimate)
Social Security and Other Obligations
Alongside tax obligations, EI status requires the individual to register for and pay into the national social security scheme. Contribution rates and applicable bases are defined by the authorities and depend on the business activity and turnover.
Administrative Process for EI Status
Registration for Entreprise Individuelle must be completed at the Centre de Formalités des Entreprises (CEFORE). The process involves identity verification, business address confirmation, and declaration of intended business activity. CEFORE streamlines the necessary paperwork and provides guidance on fulfilling initial formalities.
Legal Liability and Status Separation
It’s important to note that unlike incorporated business forms, the Entreprise Individuelle does not create a separation between the business and personal assets. The owner is personally responsible for all debts and liabilities incurred by the business. This aspect should be considered carefully before registration.
Key Features of Sole Proprietorship (EI) in Burkina Faso – 2025
| Feature | Description |
|---|---|
| Status Name | Entreprise Individuelle (EI) |
| Legal Entity Created? | No (individual and business are legally the same) |
| Personal Liability? | Yes, unlimited |
| Tax Regimes | Régime du forfait, Régime du réel simplifié, Régime du réel normal |
| Social Security | Mandatory contributions required |
| Registration Body | Centre de Formalités des Entreprises (CEFORE) |
Official Resources for Further Reference
- Burkina Faso Tax Administration
- Guichet Entreprises Burkina Faso
- Centre de Formalités des Entreprises (CEFORE)
Pro Tips for Setting Up an EI in Burkina Faso
- Carefully assess your projected turnover to choose the most appropriate tax regime (forfait or réel) and avoid surprise tax obligations.
- Complete all registration procedures directly at a CEFORE office to ensure compliance with local administrative requirements.
- Maintain thorough records of your business activity, as tax authorities may estimate your taxable base under the forfait regime if you lack documentation.
- Remember that personal assets can be at risk due to unlimited liability—consider your risk appetite before selecting EI status.
- Stay up-to-date with annual changes to turnover thresholds and tax rules to remain compliant in 2025 and beyond.
Overall, Entreprise Individuelle status provides a straightforward pathway for individuals to formalize their business in Burkina Faso, with several simplified tax options suitable for various scales of activity. Registration is accessible and well-supported by CEFORE, though entrepreneurs must balance administrative ease with the reality of unlimited personal liability. Careful tax planning and routine compliance reviews are essential for anyone considering EI status in 2025.