Mali

Introduction

Skuad’s EOR Mali (Employer of Record Mali) helps your business expand into Mali without the need for an entity setup. Skuad’s unified and automated global HR platform enables you to hire employees in Mali, tend to the business opportunities in Mali, and manage employees’ payroll, benefits, etc., compliantly, thereby helping you streamline the global expansion process.

Mali At A Glance

Mali is a landlocked West African country, bordering 8 others. It is the eighth-largest country on the continent. 

Population: 19.1 Million

Currency: West African CFA franc (XOF)

Capital city: Bamako

Languages spoken: French (official Language), Bambara (spoken by at least 80% of the population)

Total GDP (PPP): $44.329 billion (2018)

Total GDP (nominal): $17.407 (2018)

Time zone: UTC GMT

Employment In The Republic Of Mali

Mali employment laws apply to both foreign nationals and citizens. However, there are some differences in the entitlements. Therefore, to minimize the challenges that may arise for companies looking to set up a local office, it is advisable to partner with a local payroll provider who is well aware of the Mali laws for both local and foreign workers.

Contractors vs. Full-Time Employees

While hiring employees on a contract basis seems like a logical and cost-effective way to proceed with the expansion of your business, Malian laws are strict and complex in this respect. Thus, it is more beneficial to hire full-time employees. Of course, your company would have to provide employee health benefits, travel allowances, and some other benefits. Still, it is less risky and would pay off in the long run, and it is better than paying fines annually.

Hiring protocols differ marginally when hiring foreign nationals. However, as opposed to Malian residents, employment of foreign employees without individual work permits attracts hefty penalties. In addition, both the foreigners and residents of Mali need an indefinite or a fixed-term employment contract in writing.

The process of hiring both types of employees can be long-drawn due to the legal hassles, bureaucratic, and administrative processes involved. An EOR like Skuad can make a crucial difference to your hiring and talent recruitment process in Mali.

Hiring In Mali

For arranging a meeting to hire employees in Mali, you need to send a letter to the concerned party outlining your company's background, its history, and a request for a meeting, as well as details of what you’ll cover. A minimum of two copies of the contract is required, and both copies need to be signed or sealed by both the employer and the employee. The hiring companies in Mali must include the following in the employment contract:

• Name and address of the employee and employer
• Position and place of work
• Employment contract period
• Work duration and breaks
• Employees’ duty
• Compensation
• Insurance provided by the employer.

Probation & Termination

Probation period

The standard probation period in Mali can last up to 6 months.  The probation period is generally equal to the notice period of service termination. The pay scale in the probation period is the same as that of a permanent position of equal stature.

Termination of employment in Mali

In general, termination of an employment contract in Mali is strict and must be carried out with utmost compliance with the rules and procedures. Mali labor laws regarding termination of employment are mostly in favor of the employee, and any misstep can have major consequences for the employer. In case the employer terminates a fixed-term contract, the employee is eligible for compensation.

In adherence to the employment contract law in Mali, an employment agreement in Mali may be terminated for the following reasons:

• expiration of the fixed term
• change of employment conditions
• the inability of the employee to perform the work
• staff reduction or downsizing
• failure to complete the probationary period in Mali
• reaching pensionable age
• any other grounds as laid out in the employment agreement contract.

EOR Solution In Mali

There are two ways to expand into Mali; either build an in-house team or take the services of an EOR to manage payroll and employee lifecycle.

Working with an Employer of Record solution in Mali makes it quick and easy for businesses to expand into Mali. Skuad’s Mali EOR solution can help you manage monthly payroll, contracts, work permits, taxation, etc., in Mali for your employees. Book a demo with Skuad here to learn more.

Types of Visas in Mali

Here are some of the types of work visas and work permits required to take up employment in Mali:

The documents required for obtaining a work visa in Mali:

• Two duly filled and signed visa applications forms
• A passport valid for at least six months after the planned departure from Mali
• Two recent passport-size photos
• Business cover letter 
• Certificate of yellow fever vaccine
• Flight itinerary
• Your company's registration certificate and the most recent income tax filing.

Work Permit

Skuad’s local partner in Mali can sponsor foreign workers for work permits. As an EOR in Mali, Skuad takes care of all the requirements and responsibilities related to

employment. On Skuad’s HR platform, the client company can manage their employees’ daily activities and operations.

Setting up payroll and taxes in Mali requires thorough knowledge of the local policies and regulations, which come with several risks and liabilities. Choosing Skuad for payroll outsourcing in Mali can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.

Payroll & Taxes in Mali

As a foreign company, it is important to adhere to the Mali payroll tax rates. For this, it is important to first decide whether you wish to hire locals or foreigners.

Choosing Skuad for payroll outsourcing in Mali can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.

Incorporation

The process of incorporation of a company in Mali varies depending upon the type of company that you need to set up. Most small to medium-sized businesses take the LLC route (Limited Liability Company) as it enjoys the most freedom when it comes to actions that can be taken as a business in Mali. 

The following steps must be followed to set up a subsidiary in Mali as an LLC:

• Obtain the investment approval
• Deposit the startup capital in a local bank
• Sign an affidavit as proof of no criminal record
• Notarize the bylaws and pay the registration fees at the notary
• Purchase legal stamps
• Fill the applications for taxes, Tribunal de Commerce, and Statistical Office.
• Submit the proof of payment

Depending upon your company’s needs and intent, you can also opt to register as a PLC (Public Limited Company), Branch Office, or Representative Office.

Incorporating a holding company in Mali takes approximately 11 days, and there are seven procedures to be followed. The parent company is required to provide an apostille or notarized/translated copy of the incorporation document and the charter of the parent company abroad. Skuad’s formation agents can supervise the creation of a subsidiary in Mali in 2021.

Here is a table that compares the four types of companies across different aspects:

However, incorporating a holding company in Mali means that you need to thoroughly understand the nitty-gritty of the incorporation process. The best way is to work with Skuad’s EOR solution to avoid incorporating a holding company in Mali and yet hire the best local talent here for your Malian business.

Skuad’s expert agents can walk you through all these procedures and answer all your queries regarding the incorporation of subsidiaries in Mali. Register here to schedule a meeting with the experts.

Professional Employer Organization (PEO)

A Professional Employment Organization (PEO) is like an outsourced HR department. When a medium to small-sized company collaborates with a PEO, it continues with its usual mode of operations while the PEO handles the HR-related operations. Moreover, the HR documents and employee checks will display the PEO’s name instead of the company’s name.

Benefits:

• Managing employee benefits, including academic, medical, and dental
• Payroll processing and record maintenance
• Managing the workers’ compensation
• Employee training and development
• Recruitment and hiring
• Management of HR costs, planning, and advertisement costs for hiring in Mali.

Drawbacks:

• Loss of control
• Unexpected changes
• Cash flow disturbance
• The potential risk of penalties

Skuad primarily offers EOR services. Skuad EOR solutions enables seamless business expansion into Mali and facilitates employment for organizations. Book a demo here.

Conclusion

You can choose either one of the above services, depending on your requirements. Discuss with Skuad’s legal assistants and experts regarding your needs and expectations. Visit Skuad today and talk to an expert to understand how you can expand your business in Mali.