DOING BUSINESS IN BENIN IN 2024
Since 2003, Healy Consultants Group 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.
| Summary | LLC | Fast setup solutions | Free Zone LLC | Public limited company | Representative office | Branch office |
|---|---|---|---|---|---|---|
| Also known as | SARL | Fast setup solutions | SARL en zone franche | SA | Bureau de representation | Sucursale |
| Best use of company? | All products and services | Client to fast close local deal | Manuf/ export trading | To secure public funding | Marketing/ research | Specific projects |
| How soon to invoice Clients? | 5 weeks | 2 weeks | 7 weeks | 6 weeks | Cannot | 6 weeks |
| How soon can you hire staff? | 5 weeks | 2 weeks | 7 weeks | 6 weeks | 5 weeks | 6 weeks |
| How soon can you sign a lease agreement? | 6 weeks | 2 weeks | 8 weeks | 7 weeks | 6 weeks | 7 weeks |
| How long to supply corporate bank a/c? | 10 weeks | 4 weeks | 12 weeks | 10 weeks | 10 weeks | 11 weeks |
| How long to supply co. reg / tax numbers? | 5 weeks | 2 weeks | 7 weeks | 6 weeks | 5 weeks | 6 weeks |
| Corporate tax rate on annual net profits? | 30% | 30% | 0% | 30% | 0% | 30% |
| Limited liability entity? | Yes | Yes | Yes | Yes | No | No |
| Res. director/partner/ legal rep. required? | No | No | No | No | Yes | Yes |
| Minimum paid up share capital? | US$50 | US$50 | US$50 | US$18,000 | None | None |
| Corporate bank account location? | EcoBank | UBA Group | Diamond Bank | Bank of Africa | Societe Generale | Orabank |
| VAT payable on sales to local customers? | 18% | 18% | 0% | 18% | Cannot trade | 18% |
| Average total business set up costs? | US$10,250 | US$25,650 | US$18,050 | US$9,850 | US$11,100 | US$13,850 |
| Average total engagement period? | 10 weeks | 4 weeks | 12 weeks | 10 weeks | 10 weeks | 11 weeks |
| Accounting and tax considerations | LLC | Fast setup solutions | Free Zone LLC | Public limited company | Representative office | Branch office |
|---|---|---|---|---|---|---|
| Statutory corporate tax payable? | 30% | 30% | 0% | 30% | 0% | 30% |
| Legally tax exempt if properly structured? | No | No | Yes | No | Yes | No |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | Yes | Yes |
| Must always appoint an auditor? | No | No | No | Yes | No | No |
| Access to double taxation treaties? | Yes | Yes | Yes | Yes | No | Yes |
| Monthly VAT reporting to the Government? | Yes | Yes | Yes | Yes | No | Yes |
| WH tax on payments to foreign s/holders? | 15% | 15% | 0% | 15% | None | 15% |
| Company registration | LLC | Fast setup solutions | Free Zone LLC | Public limited company | Representative office | Branch office |
| Min. number of shareholders/partners? | 1 | 1 | 1 | 1 | Parent company | Parent company |
| Maximum shareholding for foreigners? | 100% | 100% | 100% | 100% | 100% | 100% |
| Minimum statutory paid up share capital? | US$50 | US$50 | US$50 | US$18,000 | None | None |
| Recommended paid up capital? | US$50 | US$50 | US$50,000 | US$18,000 | US$50 | US$50 |
| Shelf companies available? | Yes | Yes | No | No | No | No |
| Time to incorporate a new entity? | 5 weeks | 2 weeks | 7 weeks | 6 weeks | 5 weeks | 6 weeks |
| Can easily convert to a PLC? | Yes | Yes | Yes | Yes | No | No |
| Can have preference shareholders? | No | No | No | Yes | No | No |
| Business considerations | LLC | Fast setup solutions | Free Zone LLC | Public limited company | Representative office | Branch office |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | No | Yes |
| Can secure trade finance? | Yes | Yes | Yes | Yes | No | Yes |
| Government approval required for foreign owners? | No | No | Yes | No | No | No |
| Good entity for trademark registration? | Yes | Yes | Yes | Yes | No | Yes |
| Can secure an import and export license? | Yes | Yes | Yes | Yes | No | Yes |
| Sponsorship by a local citizen required? | No |
| Public register of shareholders and directors? | Yes |
| Security deposit to be kept with Government? | No |
| Our Client must travel to Benin? | No |
| Government grants available? | Yes |
| Must file an annual tax return? | Yes |
| Temp. 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? | No |
| S/holder/director docs attested/translated? | Yes |
| Foreign director needs personal tax no.? | 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 is included in my cust. 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% |
| Govt foreign investment approval required? | No |
| Average monthly office rent? (US$/sq m) | US$10 |
| Minimum statutory monthly salary? | US$70 |
| Average US$ salary for local skilled staff? | 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 |
Benin business setup summary
- 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;
- 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;
- Our Clients willing to manufacture products in Benin are often interested to register their company in a Benin Special Economic Zone;
- Business setup in Benin is a time consuming process, taking at least 4 months to be completed;
- 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.
