The Republic of Benin is a small country in western Africa. The port of Cotonou promotes trade. In Porto Novo or any other city in Benin, establishing companies engaged in the cotton industry, energy, and construction is profitable. The country is actively developing telecommunications and agriculture, gradually raising the standard of living. Company registration in Benin is beneficial because the government actively attracts foreign investments: through various tax regimes and preferences.
Advantages of registering a company
- availability of economic incentives;
- strategic geographic location in West Africa;
- economic and political stability;
- favorable business climate;
- availability of special economic zones.
Main forms of legal presence and doing business
- individual entrepreneur (Statut de l'Entreprenant - SE);
- Limited Liability Company (Société A Responsabilité Limitée - SARL);
- joint stock company (Societe Anonyme - SA);
- joint venture (Société de Projet - SP);
- general partnership (Société en Nom Collectif - SNC);
- civil companies (Sociétés Civiles - SC).
Most foreign investors prefer to open a company in Benin as a SARL.
Registration procedure
- open a bank account and deposit the share capital in it;
- register the company in Benin with the Agence de Promotion des Investissements et des Exportations (APIEX);
- obtain a unique tax number (IFU);
- obtain additional licenses and permits to conduct business.
Legislation and regulatory environment
The primary source of law is local law. However, the country is also a member of the West African Economic and Monetary Union (UEMOA) and the Organization for Harmonization of Corporate Law in Africa (OHADA). The Investment Code is one of the essential documents for foreign entrepreneurs. The Civil Code and Commercial Code regulate the activities of firms.
Tax system
- corporate tax - 30%;
- personal income tax - from 0% to 30% in proportion to the amount of income;
- VAT - 18%;
- capital gains tax - 5%;
- tax on dividends - 0%, 5%, or 10%, depending on the category of the payer and the recipient.
Open a business in Benin: how Prifinance lawyers can assist
Benin is a promising and safe destination for investment. The Republic continues developing commercial infrastructure and is a re-exporting country, sending goods to neighboring landlocked countries. Prifinance lawyers will support you to open a company in Benin, handling the paperwork and administrative formalities. In addition, we provide annual company and accounting services.