Benin is officially the Republic of Benin, a state in West Africa. The capital of Benin is Porto Novo, but the prime minister is in Cotonou. The Government of Benin (GOB) promotes foreign investment. The Presidential Investment Council (PIK), created in 2006 to strengthen dialogue between the Government of Belarus and investors, aims to rapidly implement reforms and improve the business environment. Benin made it easier to set up a business by appointing a commercial register representative at a single business registration center. Benin has taken several initiatives to attract foreign investment (especially in the power generation sector), such as the creation of a Presidential Investment Council. Registration package to be submitted to the Center for Corporate Formalities (CFC) of the Benin Chamber of Commerce and Industry (CCIB) to register a company. Scroll down for more learning on company establishment in Benin.

Company registration in Benin

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

Company registration in Benin – Licensing

Goods to be imported for commercial purposes must obtain the importer’s permission from the Ministry of Commerce, Crafts, and Tourism.

Accounting and Tax Accounting for Companies Registered in Benin

• The corporate income tax rate is 38% for most companies and 58% for oil and mining companies. Companies exempt from income tax include agricultural credit unions and self-help associations. When reinvested within 3 years, capital gains are exempt from tax.
• Dividends paid to residents and tax laws, but this includes companies registered corporate income tax liabilities less than non-residents, typically 15% in Benin and permanent establishments, and withholding tax of XOF 200,000. This rate has been reduced to 10% of branches of non-resident corporations.

The most profitable business ideas in Benin 

Before diving into it, entrepreneurship requires compelling business ideas. Following this, this article has compiled a list of the most profitable business ideas in the Republic of Benin from which you can choose to start:

1. Roadside corner fast food

This is an old, proven business. If you want to reap the rewards, of course, but steadily, food is a great area of ​​business. Food is an essential need, and the demand for it will never decrease. Thus, it is considered a money-making activity. If you work hard and want to put your culinary skills to the test, you can opt for this business option.

Maintain quality, good portions, be exceptional and build your brand. Follow these simple tips and your first visitors will quickly become repeat customers.

2. Retail palm 

Make big profits as a supplier of Palm Oil, a liquid consumed in large quantities in Benin. It is one of the most lucrative business ideas in the Republic of Benin. What you need to do is store your precious oil during peak hours and start selling it in the off-season.

However, first find out where to buy, where to sell, how to store, and how to resell. The demand for palm oil in Benin will never fall as it generates huge profits.

3. Rice

Rice production in Benin is significantly lower than its consumption level. Thus, growing rice can be a guaranteed business start-up idea and a fruitful source of income.

4. Development of websites

It is fast becoming one of the most favorable and promising business areas for young entrepreneurs not only in Benin but around the world. All you need is a deep and clear understanding of online processes, marketing strategies, SEO tactics, and legal advice. It is cost-effective, futuristic, profitable, and customer-focused.

5. Office support 

Office workers are usually completely absorbed in their work, work long hours, and often have little time to shop. Contact your local office and learn how to become an office equipment supplier. You can provide them with everything they need, from office supplies to fashion items and grocery products. The only advice is don’t be greedy but honest and fair with your prices. The main thing is to make them happy so that you can receive a stable income and attract referrals. Don’t try to get rich quickly.