Many foreign-investor problems do not begin with a rejected incorporation filing. They stem from decisions made beforehand: an activity described incorrectly, an unvetted partner, premises that cannot be licensed, or an agreement that fails to protect funding and exit rights.

Common mistakes to avoid

1. Choosing only by the lowest setup fee. Compare liability, financing, and governance with the project’s five-year plan.
2. Ignoring activity restrictions. Some sectors require prior approval, minimum capital, qualifications, or ownership conditions. Map the licensing route before transferring funds.
3. Using a nominal partner. Identify real ownership and beneficial owners and record each partner’s obligations accurately.
4. Relying only on standard articles. A formation template may not cover additional funding, deadlock, non-compete rules, pre-emption, valuation, or exit.
5. Using an ineffective power of attorney. Missing authority, a name mismatch, or incomplete authentication can restart the process.
6. Signing a lease before licence review. Make the premises commitment conditional on licensing feasibility where possible.
7. Treating the commercial register as the finish line. Tax, social insurance, banking, e-invoicing, and sector permits remain separate steps.
8. Confusing ownership with residence or work rights. Plan company, residence, and work-permit tracks separately.
9. Setting token capital. Legal minimums may not meet operational, banking, supplier, or immigration needs.
10. Ignoring tax and remittance planning. Review funding, dividends, and related-party loans before transactions accumulate.

Pre-incorporation safeguards

Prepare an activity and licensing memo, compare legal forms, screen partners and beneficial owners, budget setup and operations, document shareholder arrangements, and plan tax, banking, and residence matters. Review the applicable GAFI Investor Services Center guide and the documents in force before filing. General information; Legal Protector review, September 2026.