The Republic of Benin is a West African country. It is bordered on the west by Togo, on the east by Nigeria, on the north by Burkina Faso, and on the north by Niger. The Bight of Benin, which is part of the Gulf of Guinea in the Atlantic Ocean’s northernmost tropical region, is home to the majority of the country’s inhabitants. Benin’s capital is Porto-Novo, but the administration is headquartered in Cotonou, the country’s main city and commercial hub. Benin is a tropical country with a strong agricultural economy that exports a lot of palm oil and cotton. Subsistence farming provides significant employment and revenue.
Benin’s market potential is enormous. Its underdeveloped market is an advantage that entrepreneurs should take advantage of since it offers several opportunities waiting to be discovered. In Benin, starting a business is simple. Every business setup, however, must be formalized by registering the business. All business registration in the Republic of Benin is handled by the Guichet Unique de Formalisation des Entreprises (GUFE).
Steps for forming a company
The steps for forming a company in Benin are as follows:
Checking the name of the business.
The Commercial Registry verifies the uniqueness of the business name. Before registering in the trade register in Benin, as in all other OHADA member nations, a firm must adopt a unique name. It is now possible to check a company’s name online. It only takes a day to complete the process.
Notarization
A public notary public is required to notarize the incorporation documents. Since 2014, it has been legal to use notaries. Entrepreneurs in Benin, on the other hand, frequently use notaries to help them with the legal aspects of their firm. The notary costs for firms with a share capital of more than $1 million vary depending on the notary’s competence and services. The following fees are estimated: 25,000 for the legal notice in the newspaper; 3% of the capital for the notary; 20,000 for stamp duty. This procedure takes approximately 3 days.
Sharing Capital Payment
To deposit the company’s share capital, the applicant must open a bank account. The bank must provide a receipt and an attestation, which will be required for the formalities at the Guichet Unique de Formalisation des Entreprises (GUFE). The entire procedure takes one day.
Filling documents with the GUFE.
On October 20, 2009, the Benin government passed a decree establishing a one-stop shop. On March 26, 2012, the one-stop shop opened its doors. Entrepreneurs can now register with the commercial registry and tax authority, as well as the Labor Directorate and the Directorate of Commerce all in one spot. Since May 2015, the following fees have been charged: 12,000 XOF for the cout de greffier, 5,000 XOF for the trader card, 12,000 XOF for registration fees, and 5,000 XOF for the trader card.
Making the bank account active
Within 30 days after incorporation, the bank account must be activated. To activate the company’s account and withdraw funds, the applicant must return to the bank and present the commercial register.
Registering your business and employees with the Social Security Administration
A newly established firm and its employees must register with the Caisse Nationale de Securité Sociale (CNSS) for social security within three months of incorporation, according to the legislation.
Registration with the Tax Authority Declaration
Within 20 days of the start of commercial activity, all new enterprises must file a tax registration statement with the tax authority. This is primarily for the tax authority’s (DNID) records to ensure that taxpayers are current on their payments. The fiscal number (IFU), the number of employees, and the commercial register are required documents for registration. A site visit will be conducted by the DNID tax agency to check that the address supplied is correct.
