Benin company registration

Benin company registration

DOING BUSINESS IN BENIN

Since 2003, Healy Consultants has assisted our Clients with forming their company in Benin. Our services include i) Benin business registration ii) government license registration iii) corporate bank account opening services in Benin and abroad iv) employee recruitment v) visa strategies and vi) office rental solutions in Benin.

  1. Benin is a small French speaking country. To avoid communication problems, our Clients often prefer Healy Consultants to project-manage the A to Z of the formation of their business in Benin;
  2. The most popular corporate entity to do business with Benin customers is the limited liability company (known as a SARL in Benin). A paid-up capital of only US$1 is required to setup such entity;
  3. Our Clients willing to manufacture products in Benin are often interested to register their company in a Benin Special Economic Zone;
  4. Business setup in Benin is a time consuming process, taking at least 4 months to be completed;
  5. Corporate banking options in Benin are scarce, with only twenty-one different banks available in this country, none of them being a top tier international reputable bank.
SummaryLLCFree zoneBranch of foreign companyRepresentative office
Best use of company?Trading companyBenin manufacturingConsolidated income and expensesMarketing and research
Legally tax exempt if properly structured?NoYesNoNo
Corporate bank account location?EcoBankUnited Bank of AfricaDiamond BankBank of Africa
Client must travel to Benin?NoNoNoNo
Can secure trade finance?YesYesYesNo
Limited liability entity?YesYesNoNo
VAT payable on sales to local customersYesNoYesNo
Withholding tax on payments to shareholders?YesNoYesNo
Average total engagement costs?US$10,250US$9,850US$11,850

US$11,100
Average total engagement period?4 months4 months5 months5 months
Accounting and tax considerationsLLCFree zoneBranch of foreign companyRepresentative office
Statutory corporation tax payable?30%0%30%N/A
Must file an annual Benin tax return?YesYesYesNo
Effective corporation tax rate on net profits of US$250,000?30%0%30%N/A
Investment income is legally tax exempt in Benin?NoNoNoNo
Access to double taxation treaties?YesYesYesNo
Monthly VAT reporting to the Government?YesYesYesYes
Legally tax exempt entity?YesYesNoNo
Dividends received are legally tax exempt?NoYesNoNo
Company registrationLLCFree zoneBranch of foreign companyRepresentative office
Benin resident director\partner\manager required?NoNoNoNo
Minimum number of shareholders\partners?1111
Minimum number of directors\managers?1111
Minimum paid up share capital?US$1US$1US$1US$1
Shelf companies available?NoNoNoNo
Time to incorporate a new entity?5 weeks7 weeks7 weeks7 weeks
Can easily convert to a local PLC company?YesYesNoNo
Can have preference shareholders?NoNoNoNo
VAT payable on sales to local customers18%0%18%0%
Business considerationsLLCFree zoneBranch of foreign companyRepresentative office
Withholding tax on payments to parent company?15%0%15%0%
Can invoice local customers?YesYesYesNo
Can hire local staff?YesYesYesYes
Can rent local office space?YesYesYesYes
Secures a residence visa for business owner?YesYesYesYes
Good entity for trademark registration?YesNoNoNo
Other useful informationLLCFree zoneBranch of foreign companyRepresentative office

Average monthly office rental? (US$ per sq m)10
Minimum statutory monthly salary?30
Average monthly US$ salary for local employees?80
CFA deposit interest rate? (1 year average)2.6%
US$ deposit interest rate? (1 year average)3.5%
Overseas remittance currency controls?No
Public register of shareholders and directors?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?No

Quality of e-banking platform?ExcellentSatisfactoryGoodSatisfactory

Useful links for Benin

Contact us

For additional information on our company registration services in Benin, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
benin government website benin agency for trade promotion Central bank of West African States CCI Benin - Chamber of Commerce