Company Formation in Benin | Business Registration | IMC
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Benin

SET UP A BUSINESS IN BENIN

Benin officially the Republic of Benin, is a country in West Africa. The capital of Benin is Porto-Novo, but the chair of government is in Cotonou. The Government of Benin (GOB) encourages foreign investment. The Presidential Investment Council (PIC), established in 2006 to reinforce dialogue between the GOB and investors, aims to fast implementation of reforms and boost the business environment. Benin made starting a business easier by appointing a representative of the commercial registry at the one-stop shop for business registration. Benin has taken several initiatives to attract foreign investment (especially in the electricity generation sector), such as establishing a Presidential Investment Council. The incorporation package which needs to be presented to Benin’s Chamber of Commerce and Industry’s (CCIB) Corporate Formalities Center (CFC) to incorporate a company. Scroll down for more information on company formation in Benin.

 Company Formation in Benin

  • In Benin, as in all member countries of the Organization for the Harmonization of Business Law in Africa (OHADA), any company must choose a unique company name before it is registered in the trade register.
  • The limited liability company, in the largest business city and is 100% domestically owned.
  • There is a free trade zone in the port of Cotonou for Benin’s landlocked neighbours (Burkina Faso and Niger).

Company Registration in Benin – Licensing

  • Import goods for commercial purposes must obtain an importer’s permit from the Ministry of Trade, Crafts and Tourism

 Accounting and Tax for Company Registered in Benin

  • The corporate income tax rate is 38% for most companies, and 58% for petroleum and mining firms. Those companies exempt from income tax include agricultural credit unions and mutual associations. If reinvested within 3 years, capital gains are exempt from tax.
  • Dividends paid to residents and tax law, but it includes companies registered corporate income tax liability is less than non-residents generally are subject to a 15% in Benin and permanent establishments and XOF 200,000 withholding tax. This rate is reduced to 10% branches of non-resident corporations.

Type Limited Liability Company,
Société à Responsabilité Limitée (SARL)
Under Benin law, foreigners can own 100%
Share Capital XOF 1,000,000
Manager Minimum One
Shareholders Minimum One
Memorandum and Articles of Association No
Can the entity hire expatriate staff in Benin Yes
Tax Registration Certificate Required Yes
Statutory audit required Yes
Annual Return Yes
Annual Tax Yes
Access to Benin double tax treaties Yes

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