The Law Hub

SME owners can get financial support for their business from government or non-governmental organisations. Therefore, it is advised that SMEs be registered with SMEDA to access financial support or stimulus packages.

SMEs can receive either financial support in the form of grants, credits or donations or in-kind support in the form of technical or welfare support.

Yes, SMEs are qualified to be granted loans or other credit facilities from financial institutions such as commercial banks, micro-credit institutions and NGOs which support small and medium businesses. They, however, will have to meet their different requirements.

To access loans or credit facilities, SMEs are usually required to have an account with a bank or be registered with a credit institution. SMEs are advised to always operate a bank account to easily access loans or credit facilities.

SMEs can receive loans or credit without collateral (ose-book). However, usually banks or credit institutions would require a collateral (house document, stocks, machines, vehicles, accounts, shares etc.) or a personal guarantor to secure a loan.

Yes, SMEs can own a trademark. The business name is the first trademark of a business. A trademark is any distinct symbol, alphabets, or words used by a business enterprise , legally registered business or company for the identification of its products or services.

Yes, trademarks can be registered at the Intellectual Property Division of the Office of the Administrator and Registrar-General at Roxy building, Freetown.

SMEs can protect their trademarks by registering them at the Intellectual Property Division of the Office of the Administrator and Registrar-General at Roxy building, Freetown.

Yes, SMEs can protect their trade secrets or confidential transactions by signing “confidentiality” or non-disclosure” agreements with their business counterparts or employees.

SMEs are obliged to comply with labour laws in respect to their workers. For instance, they should pay their salaries, NASSIT contributions and PAYE tax on time.

It is illegal for SMEs to pay their workers below the minimum wage. SMEs can agree salaries or other benefits with their workers but not below the minimum wages or against the law.

For SMEs that are not small companies, their owners are liable for any breach of contract or any other action.

Generally, SMEs are required to pay income tax; PAYE (Pay-As-You Earn__ which is income tax paid by workers, goods and services tax (GST), Payroll (for foreign workers) etc.

There are different rates of income tax for various obligations. For instance, PAYE for payments above the minimum wage of NLe.800 is 25%. For further information please consult the Small and Medium Tax Payers’ offices at the National Revenue Authority https://www.nra.gov.sl/businesses-and-organisations/large-small-medium-taxpayer-offices

GST rate is 15% of the value of the goods.

Yes, they are tax incentives for SMEs provided for in the tax laws of Sierra Leone. For instance, SMEs are eligible for a tax relief in the first year of business. Kindly consult the National Revenue Authority for further information https://www.nra.gov.sl

Yes, in some cases, there are different tax obligations for non-nationals with SMEs.

For SMEs that are not small companies, the business owners can contract on behalf of the entity since the entity does not have a separate legal personality.

Yes, SMEs can acquire assets but for those SMEs that are not small companies, the assets would have to be registered in the name of the business owners.

It is advised that SMEs should always have a written enforceable contracts with clients, customers, suppliers etc. specifying how disputes should be resolved. SMEs should endeavour to resolve minor disputes through negotiations or mediation.

Yes, SMEs can sue to enforce a contract or for breach of contract. However, SMEs that are not small companies can only sue through their business owners or managers.

SMEs should endeavour to secure the services of a professional such as a lawyer or a business consultant to advise them on terms, obligations, risks and consequences of a contract or a business initiative.