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BjBenin Subsidiary.

Population

13,754,688

Languages

1.

French

Country Capital

Porto-Novo

Currency

West African CFA franc (XOF)

Companies expanding to Benin will need to set up a subsidiary to begin operations. This is an essential step before you can hire employees, add them to your payroll, and give out compensation and benefits.

Luckily, there is an alternative. As a global EOR, G-P enables companies to expand without the hassle of entity setup. When you partner with us, you can start working in Benin in minutes, not months.

How to set up a Benin subsidiary

Before undertaking an expansion, it can help to consider several factors that will impact incorporation. Your location, such as your office’s HQ, can have specific Benin subsidiary laws that make it easier or more difficult to incorporate. If you’re not sure what location would be best for your subsidiary, we advise working with an expert who can recommend the best place for your office.

Learning how to set up a Benin subsidiary also includes learning which entity is best for your business needs. You can incorporate as one of several different entities, including a limited liability company (LLC), public limited company, branch, or representative office.

Every entity has its own costs, availability, structure, and range of permitted activities, so you should choose the one that best aligns with your goals.

Many companies choose to set up their subsidiary as an LLC. Doing so will give your company more freedom and flexibility, and you can reap benefits for both your parent company and subsidiary. Establishing a Benin LLC includes the following steps:

  • Choosing a unique company name
  • Finding a notary public to notarize the instrument of incorporation
  • Creating an in-country bank account and depositing share capital
  • Filing all documents with the Guichet Unique de Formalisation des Entreprises (GUFE)
  • Registering with the commercial registry, tax authority, the Labor Directorate, and the Directorate of Commerce
  • Returning to the bank to show your official registration and activate your account
  • Registering with social security within 3 months of incorporation
  • Declaring existence to the tax authority within 20 days of the start of the business activity
  • Submitting the fiscal number (IFU), the number of employees, and the “carte du commercant
  • Going through a tax agency for a site visit to ensure the address is correct

Benin subsidiary laws

LLCs require 1 director and 1 shareholder who can be of any nationality. Shareholders can also be a legal entity or an individual. LLCs should have a minimum of USD 1 to go through the incorporation process, plus all required registration documents. Since LLCs operate like residential companies, you need to appoint a statutory auditor if share capital is above USD 18,000, annual turnover exceeds USD 45,000, or you employ more than 50 people.

Benefits of setting up a Benin subsidiary

Incorporating as an LLC can benefit both you and your parent company and allow you to start working in the country. Since the parent company and subsidiary have limited liability from each other, they can operate somewhat independently without the worry of incurring risk for one another.

However, as a global EOR, G-P can provide additional benefits. Instead of undergoing the lengthy setup process on top of hiring, compliance, and more, you can partner with us. We’ll handle the entire employment lifecycle and assure compliance every step of the way.

Other important considerations

Prior planning is key to your subsidiary’s success. Start by meeting with your accounting department to figure out how much money you’ll need for the Benin subsidiary setup process. Then, find an expert in Benin subsidiary laws who can help you stay compliant, whether it’s a lawyer, accountant, or third-party consultant.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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