Simplifying the business creation process by reducing time and costs

 

The Government of Benin has improved the business climate by facilitating business creation through the adoption of legislation aimed at simplifying the business formalization process, including the elimination of the requirement to establish a minimum share capital and the use of a notary when creating Limited Liability Companies (SARLs), and the reduction of the costs and time required to formalize businesses. These are:

Decree No. 2014-220 of March 26, 2014, establishing the modalities for the creation of Limited Liability Companies (SARL) in the Republic of Benin,

Decree No. 2014-194 of March 13, 2014, amending Decree No. 2009-542 of October 20, 2009, establishing the creation, responsibilities, and operation of the Single Window for Business Formalization (GUFE),

The interministerial decree regulating the formalities relating to the entrepreneur's declaration for the creation or modification of businesses, and the exercise of all entrepreneurial activities in the Republic of Benin,

Service memo 318-c of May 15, 2013, from the General Directorate of Taxes and State Property, concerning the obtaining and validation of the Unique Tax Identifier (LFU), which allows the generation of the number The IFU is submitted directly to the GUFE on the same day. The same notice exempts the bank account details (RIB) as a prerequisite for obtaining the IFU.

The adoption of these various measures has resulted in:

Cost reduction:

The costs of formalizing businesses, particularly SARLs, have decreased from 500,000 CFA francs in 2012 to 225,000 CFA francs in 2013, and then to 57,000 CFA francs in 2014, following the reforms.

The minimum share capital of 1,000,000 CFA francs has been abolished. The initial share capital is now freely determined by the partners in the articles of association (see Article 6 of Decree No. 2014-220 of March 26, 2014).

Reduction in Processes: The total time required to formalize a business in Benin has been reduced from 15 days in 2013 to eight (8) business hours today.

Reduction in Procedures: Procedures have been reduced from four (4) to two (2) – the stage of depositing capital in a bank and the stage of formalizing the business with the GUFE.

Due to:

 

• The removal of the requirement to use a notary to create an LLC (see Article 2 of Decree No. 2014-220 of March 26, 2014).

• The removal of the requirement to provide a Bank Account Statement before issuing the Unique Tax Identifier (IFU).

• Improving investor protection through the adoption of the Revised Uniform Act on the Law of Commercial Companies and Economic Interest Groups on January 30, 2014, in Ouagadougou, particularly on the following points:

• Strengthening the rights of minority shareholders;

• Increasing the liability of corporate officers;

• Improving shareholders' access to information about the company and its operations.

• Ceasing to use paper forms for the Single Fee Schedule (BFU).

• Memorandum No. 0899 and Circular No. 0898 of March 19, 2014, were issued by the General Directorate of Customs and Indirect Taxes (DGDDI), inviting all relevant administrations to cease using paper forms for the Single Fee Schedule (BFU) and to consider only the BFU and customs declaration numbers.

• Electronic Control of Information Contained on the Electronic Cargo Tracking Note (ECTN)

• Office Memorandum No. 1047 and Circular No. 1046 of April 2, 2014, were also issued by the DGDDI to electronically control the information contained on the ECTN. Thus, customs inspectors/verifiers can now electronically view this information directly in the Benin National Shippers' Council (CNCB) system, without having to request a paper version of the document.

• Reminder: Phytosanitary Certificates are No Longer Required for Regular Products.

• Office Memorandum No. 038 of February 14, 2014, was issued by the Ministry of Agriculture, Livestock, and Fisheries to remind consumers that phytosanitary certificates are no longer required for non-food products and products of non-animal and fishery origin.

• Regulation of road checkpoints on corridors in Benin

• The Government of Benin issued Decree No. 2013-546 of December 24, 2013, regulating road checkpoints on corridors in the Republic of Benin, which limits the duration of joint checkpoints to five (5) minutes per vehicle, as well as the number of joint road checkpoints for the main corridors.

• The dematerialization of the company name verification procedure due to the online publication of a company database that can be consulted remotely by any promoter before choosing the company name.​

 

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Furthermore, the Government of Benin officially launched the GUFE website (www.gufebenin.org) on February 18, 2014, to ensure, among other things, the online publication of extracts from the Trade and Personal Property Credit Register (RCCM), thereby eliminating publication costs and ensuring continuity of service.

The free online publication of RCCM extracts has been a reality in the Republic of Benin since April 2013.

 

Reorganization of the Commercial Section of the Cotonou Court of First Instance (TPIPCC)

 

Pending the creation of the Commercial Court, a new order reviving the Commercial Section has been issued by the President of the Cotonou Court of First Instance (TPIPCC) to reorganize the said section and ensure its regular operation. According to the said ordinance, members of the Commercial Section undertake to apply the provisions of the Code of Civil, Commercial, Labor, Administrative, and Accounting Procedure in the management of proceedings, with a view to the expeditious resolution of commercial matters.

 

Reduction of Time Limits for the Registration of Court Decisions

 

Awareness Letter No. 1053 of April 23, 2014, from the Minister of Justice, concerning the time limits for the registration of court decisions, addressed to the Presidents of the Courts of First Instance and Courts of Appeal, as well as to the Chief Clerks of the said courts, was sent to them for this purpose, in particular to avoid a backlog of court decisions at the Registry level.

In short, for several years now, Benin has been creating the conditions for strong and sustainable economic growth.

 

To improve its performance, the economic and financial program is continuing, including significant structural and sectoral reforms.​

These aim, among other things, to liberalize productive sectors such as agriculture, transportation and infrastructure, mining and energy, postal and telecommunications, and tourism, sectors in which there are genuine opportunities for profitable investments.

 

The institutional environment has also improved considerably in recent years, and the Government is continuing the democratization process to guarantee the rule of law, the expression of freedoms, and investment security.

 

Furthermore, aware of the negative impact of corruption on private investment and growth, Benin has launched a fight against this phenomenon.

If you happen to visit Benin, you are sure to find support structures created by the Beninese government to act as intermediaries between the state and the private sector.

 

These are:

 

The Investment Promotion Center (CPI), whose mission is to foster the development and promotion of investment in Benin.

 

The Business Formalities Center (CFE), also known as the "One-Stop Shop," created within the Benin Chamber of Commerce and Industry (CCIB), where all formalities related to business creation and amendments to their articles of association are carried out.

 

The Benin Business Opportunities Observatory (OAB), responsible, among other things, for assisting and advising businesspeople in researching and exploring domestic and foreign markets.

 

In conclusion, it can be concluded that the essential conditions for the emergence of a dynamic and profitable private sector and investment security appear to be present in Benin.