Feeling boxed in by high taxes and endless paperwork? If you’re an entrepreneur or digital nomad searching for a more flexible, low-friction way to operate your business in 2025, Burkina Faso’s approach to sole proprietorships might offer the breathing room you crave. Let’s break down exactly how the Entreprise Individuelle (EI) status works, what tax regimes apply, and how you can leverage this structure to optimize your fiscal footprint—without getting lost in bureaucratic quicksand.
Understanding the Entreprise Individuelle (EI) in Burkina Faso
Burkina Faso recognizes the Entreprise Individuelle (EI) as its primary sole proprietorship status. This structure allows any individual to conduct business in their own name, without the need to create a separate legal entity. The EI is especially popular among freelancers, small traders, and service providers who value simplicity and direct control.
Key Features of the EI Status
- Personal Liability: The EI does not create a separate legal entity. The individual is personally liable for all business debts and obligations.
- Registration: Registration is handled through the Centre de Formalités des Entreprises (CEFORE).
- Accessibility: Open to all citizens; no minimum capital required.
Tax Regimes for Sole Proprietors in 2025
Burkina Faso offers several tax regimes for EIs, tailored to business size and turnover. Here’s a breakdown of the main options:
| Tax Regime | Eligibility Criteria | Tax Calculation | Turnover Threshold (2025) |
|---|---|---|---|
| Régime du forfait | Small businesses | Flat-rate tax based on estimated profits |
|
| Régime du réel simplifié | Medium businesses | Taxed on actual profits, simplified accounting | Above forfait thresholds |
| Régime du réel normal | Larger businesses | Taxed on actual profits, full accounting required | Above forfait thresholds |
Pro Tip #1: Leverage the Forfait Regime for Maximum Simplicity
- Keep your annual turnover below 30 million FCFA (≈ $48,800) for services or 50 million FCFA (≈ $81,300) for trade.
- Register as an EI at CEFORE and opt for the forfait regime.
- Enjoy a flat-rate tax, calculated by the tax administration based on estimated profits—no complex bookkeeping required.
This regime is ideal for digital nomads and micro-entrepreneurs who want to minimize administrative headaches and keep compliance costs low.
Pro Tip #2: Understand Social Security Obligations
- All EIs are required to contribute to social security, regardless of tax regime.
- Factor these contributions into your cost calculations to avoid surprises at year-end.
Pro Tip #3: Personal Liability—Plan Accordingly
- Remember, as an EI, your personal assets are not shielded from business liabilities.
- Consider insurance or alternative structures if you anticipate significant risk exposure.
Case Example: Digital Consultant in Ouagadougou
Imagine a freelance IT consultant earning 25 million FCFA (≈ $40,700) in 2025. By registering as an EI and opting for the forfait regime, they benefit from a predictable, flat-rate tax and minimal paperwork—freeing up time and resources to focus on growing their business, not feeding the bureaucracy.
Summary: Key Takeaways for 2025
- The Entreprise Individuelle (EI) is widely available and accessible in Burkina Faso.
- Three main tax regimes exist, with the forfait regime offering the simplest compliance for small businesses.
- Personal liability is a trade-off for administrative ease—plan accordingly.
- Social security contributions are mandatory for all EIs.
For more details on registration and compliance, consult these official resources: