Benin company registration

DOING BUSINESS IN BENIN IN 2017

Since 2003, Healy Consultants Group PLC 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.
SummaryLLCFast business setup solutionFree Zone LLCPublic limited companyRepresentative officeBranch office
Also known asSARLFast business setup solutionSARL en zone francheSABureau de representationSucursale
Best use of company?All products and servicesClose a customer deal nowManufacturing and export tradingTo secure public fundingMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?5 weeks2 weeks7 weeks6 weeksCannot6 weeks
How soon can you hire staff?5 weeks2 weeks7 weeks6 weeks5 weeks6 weeks
How soon can you sign a lease agreement?6 weeks2 weeks8 weeks7 weeks6 weeks7 weeks
How long to supply corporate bank account numbers?10 weeks4 weeks12 weeks10 weeks10 weeks11 weeks
How long to supply company registration/tax numbers?5 weeks2 weeks7 weeks6 weeks5 weeks6 weeks
Corporate tax rate on annual net profits?30%30%0%30%0%30%
Limited liability entity?YesYesYesYesNoNo
Resident director/partner/manager/legal representative required?NoNoNoNoYesYes
Minimum paid up share capital?US$50US$50US$50US$18,000NoneNone
Corporate bank account location?EcoBankUBA GroupDiamond BankBank of AfricaSociete GeneraleOrabank
VAT payable on sales to local customers?18%18%0%18%Cannot trade18%
Average total business set up engagement costs?US$10,250US$25,650US$18,050US$9,850US$11,100US$11,850

Average total engagement period?10 weeks4 weeks12 weeks10 weeks10 weeks11 weeks

See full table

Accounting and tax considerationsLLCFast business setup solutionFree Zone LLCPublic limited companyRepresentative officeBranch office
Statutory corporate tax payable?30%30%0%30%0%30%
Legally tax exempt if properly structured?NoNoYesNoYesNo
Must file annual financial statements?YesYesYesYesYesYes
Must always appoint an auditor?NoNoNoYesNoNo
Access to double taxation treaties?YesYesYesYesNoYes
Monthly VAT reporting to the Government?YesYesYesYesNoYes
Withholding tax on payments to foreign shareholders?15%15%0%15%None15%
Company registrationLLCFast business setup solutionFree Zone LLCPublic limited companyRepresentative officeBranch office
Minimum number of shareholders/partners?1111Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%100%
Minimum statutory paid up share capital?US$50US$50US$50US$18,000NoneNone
Recommended paid up capital?US$50US$50US$50,000US$18,000US$50US$50
Shelf companies available?YesYesNoNoNoNo
Time to incorporate a new entity?5 weeks2 weeks7 weeks6 weeks5 weeks6 weeks
Can easily convert to a PLC?YesYesYesYesNoNo
Can have preference shareholders?NoNoNoYesNoNo
Business considerationsLLCFast business setup solutionFree Zone LLCPublic limited companyRepresentative officeBranch office
Can bid for Government contracts?YesYesYesYesNoYes
Can secure trade finance?YesYesYesYesNoYes
Government approval required for foreign owners?NoNoYesNoNoNo
Good entity for trademark registration?YesYesYesYesNoYes
Can secure an import and export license?YesYesYesYesNoYes

Sponsorship by a local citizen required?No
Public register of shareholders and directors?Yes
Security deposit to be kept with Government?No
Our Client needs to travel to Benin for business set up?No
Government grants available?Yes
Must file an annual tax return?Yes
Temporary physical office solutions available?Yes
Group HQ tax incentives?No
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?Guichet Unique de Formalisation des Entreprises (GUFE)
Minimum number of directors/managers?1
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?Yes
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?17.22%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)US$10
Minimum statutory monthly salary?US$70
Average monthly US$ salary for local skilled employees?US$350
US$ deposit interest rate? (1 year average)7.11%
Overseas remittance currency controls?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Satisfactory
Crowd funding available in this country?Yes

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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