How to exercise the leasing activities

Rédigé le 25/05/2017
ANAPI

HOW TO EXERCISE THE LEASING ACTIVITIES 

  • Law No. 15/003 of 12 February 2015 concerning the leasing (www.journal-officiel.gouv.fr).
  • Law No. 003/2002 of 2 February 2002 concerning the activity and monitory of credit institutions.

To exercise leasing activities it is necessary to :

  • Be a bank, a leasing company or financial company approved by the Central Bank of Congo, if the lease activities are performed as usual activity ;
  • Be a credit institution practicing on related title basis ;
  • Register in the Register of Commerce and Property Credit (RCCM) requesting a lessor or lessee in whose jurisdiction the lessee is registered or with the registrar of land titles of the area regarding equipment and material or real estate (www.guichetuniquerdc.cd - guichetuniquerdc@yahoo.fr) ;
  • If the lessee is not registered in RCCM, registration is required in the jurisdiction where the property is located where equipment or material subject to the leasing agreement are exploited ;;
  • The RCCM clerk shall issue to any applicant a copy of the part of the inscriptions state on the statements of transfers or amending entries ;
  • Establish a written contract between the lessor and the lessee. This must contain the following elements :
    • Identity and address of the contracting parties ;
    • Nature and characteristics of the property on the lease ;
    • Use of the leased property and, where applicable, the place of installation or delivery ;
    • Terms of the lease including the period of irrevocability ;
    • Total amount and periodicity of rent and the mention, if any, of an initial payment ;
    • Residual value of the property on the basis of which the purchase option may be exercised ;
    • Rights and obligations of the parties ;
    • Conditions for terminating the contract.
  • Get registration with the Registrar of Titles for Real Estate for property in accordance with the provisions of Law No 73-021 of 20 July 1973 on the general regime of property, real estate and land tenure and security regime as amended and supplemented by Law No 80-008 of 18 July 1980 for similar operations.
  • The supplier delivers the particular property in leasing directly to the lessee, unless otherwise provided in the supply contract ;
  • The property on lease may be collateral or guarantee of any nature or mortgage from the lessor ;
  • In case of purchase option of the property for the lessee, the lessor is required to serve any burden and mortgage on the property. The costs involved are borne by the lessor ;
  • The lessor may, for the duration of the lease contract and after notice and / or formal notice of 15 clear days, terminate the right of use of the lessee on the leased property and retrieve it amicably or by simple ordinance objectionable made on motion by the President of the Commercial Court of the residence place of the lessor of non-payment by the lessees of a single term of rent.

Some incentives of the law on leasing

  • Depreciation of fixed assets to be used in the practice of leasing profession and those assets that are rented out by a leasing institution duly approved, are under certain conditions considered as deductible expenses for the lessor ;
  • Interests on leasing rents are exempt from value added tax ;
  • The procedures for determining the increase of taxable assets may not apply to assets leased by a leasing institution.