Benin: Operating a Business

Setting Up a Company

Limited Liability Company (LLC/SARL): Number of partners: Minimum one shareholder and one director, which may be of any nationality and not be resident in the country
Capital (max/min): XOF 1
Shareholders and liability: Liability is limited to the shares
Public Limited Company (PLC): Number of partners: Minimum one shareholder and three directors, of any nationality. If the company has more than three shareholders, a board of directors must be appointed (with minimum three directors)
Capital (max/min): USD 18,000 (USD 180,000 in case of publicly traded companies)
Shareholders and liability: Liability is limited to the extent of the shareholders contributions
Limited Partnership (Société en Commandite Simple - SCS): Number of partners: Minimum one with limited liability and one with unlimited liability
Capital (max/min): No minimum capital required
Shareholders and liability: Limited partners who do not participate in management have limited liability. However, general partners or managing partners have joint and unlimited liability
General Partnership (SNC): Number of partners: Minimum two
Capital (max/min): No minimum capital required
Shareholders and liability: Partners have joint and unlimited liability

Setting Up a Company	Benin	Sub-Saharan Africa
Procedures (number)	6.0	7.5
Time (days)	8.5	21.3

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Benin.

	2018	2019	2020
Labour Force	4,679,151	4,826,125	4,925,314

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Legal Weekly Duration: The legal number of working hours is 2400 hours of work per year for agricultural workers, and 40 hours per week for other workers. (art. 142-143 of the Labour Code).
Retirement Age: Age 60 (55 for early pension) with at least 180 months of coverage.
Working Contracts: According to the Labour Code of 1998, working contracts can be either in writing or oral.
Determined time contracts which last more than a month must be in written, they cannot exceed 2 years and can be renewed only once.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises. Consult the Labour Code of 1998, to obtain a summary of the labour regulations that apply in Benin (in French)

Minimum Wage: Benin has a government-mandated minimum wage (art. 210 of the Labour Code), currently set at XOF 40,000.
Average Wage: Salaries in Benin differ significantly between different jobs. Visit VotreSalaire.org or Paylab to consult the average wages for the type of profession.
Social Contributions: Social Security Contributions Paid By Employers: The employer contributes 15.4% (6.4% pensions and a 9% family allowance) of gross monthtly salary, plus 1 to 4% of industrial injury insurance, depending on the degree of risk in the employment.
Social Security Contributions Paid By Employees: The employee contributes 3.6% of gross monthly salary for social security.

Social Dialogue and Involvement of Social Partners: The constitution of Benin recognizes the right of workers to form and join unions, as well as the right of strike. Furthermore, the Labour Code also grants the right to bargain collectively and stipulates that collective agreements in the private sector can be signed for a determined (up to 5 years) or undetermined period. Although unions should operate independently of government and political parties, in practice it is not always so.
Government authorities may declare strikes illegal if they are deemed a threat to public order or the economy and may require those on strike to maintain minimum services. In September 2018, the government of Benin passed a law limiting strikes to a maximum of 10 days per year for private-sector workers and public employees (except for those in the defense, health, justice, and security sectors, for which striking is prohibited).
Labour Unions: National Union of the Unions of the Workers of Benin (UNSTB)
Autonomous Trade Unions Centre (CSA)
General Confederation of the Workers of Benin (CGTB)
Unionisation Rate: N/A (75% of the formal sector in 2005 according to the International Centre for Trade Union Rights)
Labour Regulation Bodies: Ministry of Labour

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