Companies expanding to Benin first need to focus on the time-consuming nature of setting up a Benin subsidiary. You cannot start working in any foreign country without a registered entity, so it could take months or even a year before you can hire employees, add them to your payroll, and give out compensation and benefits.
Globalization Partners offers Benin subsidiary outsourcing to make it easier for companies to expand without their own subsidiary. We’ll act as the Employer of Record through our Benin PEO to hire employees who work for you, add them to our existing, compliant payroll, and make sure they get the benefits they deserve. When you choose us to help with your global expansion, you’ll only need to worry about running your company.
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 city or region, can have separate 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 planning to provide a wide range of products and services in Benin choose to set up their subsidiary as an LLC. Doing the same 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 at least three months within 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 one director and one shareholder who can be of any nationality and shouldn’t be a resident in Benin. Shareholders can also be a legal entity or an individual. LLCs should have a minimum of $1 to go through the incorporation process, and you also need to have all your registration documents ready. Since LLCs operate like residential companies, you need to appoint a statutory auditor if share capital is above $18,000, annual turnover exceeds $45,000, or you employ more than 50 people.
Benefits of Incorporating in Benin
Incorporating as an LLC will 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 from one another.
Globalization Partners can provide even more benefits through Benin subsidiary outsourcing. Instead of worrying about your subsidiary on top of hiring, compliance, and more, rest assured that we can take everything off your shoulders and onto our own. We’ll even handle all of Benin’s subsidiary laws to make sure your company operates compliantly.
What You Need to Succeed
Prior planning is the 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.
Choose Globalization Partners Today
Globalization Partners is the global compliance expert. If you’re planning a subsidiary, we can help through Benin subsidiary outsourcing. Contact us today to learn more.