How To Register a Sole Proprietorship (Entreprise Individuelle / Statut de l’Entreprenant) in Benin

Many freelancers, consultants, and small-scale entrepreneurs prefer to operate under a sole proprietorship in Benin because it offers simplicity, direct control, and minimal start-up complexity. Compared to forming a company, the administrative burden is lighter, and costs are lower. However, the trade-off is higher personal risk and fewer protections around liability. In practice, registering as a sole proprietor in Benin is reasonably straightforward thanks to reforms and digital registration platforms. That said, you will need to navigate tax registration, social security obligations, and sometimes licensing for certain regulated activities.

The main challenges are ensuring you pick the right tax regime, correctly registering your business in all relevant systems, and maintaining compliance. But the rewards can be compelling: you retain full flexibility, your accounting burden can remain modest, and you benefit from operating formally (rather than informally), which helps with securing clients, accessing bank accounts, and showing legitimacy.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Benin?

In Benin, a sole proprietorship is often called “entreprise individuelle” or, in the business law context, the statut de l’entreprenant.

Other terms you may see:

• Sole trader
• Self-employed worker
• Independent contractor

All of these refer to a business model in which a single individual carries on a commercial, artisanal, or service activity without creating a separate legal company (i.e., no corporate entity with separate legal personality).

How does a sole proprietorship (entreprise individuelle) work in Benin?

Entreprise individuelle vs. other business structures in Benin

Before comparing to alternatives, it’s useful to understand that operating as a sole proprietor has inherent trade-offs. You retain maximum simplicity, but you also assume full liability. Other business structures offer more protection or scale, but at the cost of complexity. The following table offers a comparison to a commonly used alternative—typically a limited liability company structure.

Step-by-step guide: How to register a sole proprietorship in Benin

Step 1: Check your eligibility

Beninese citizens can freely register as sole proprietors by presenting valid national identification and proof of residence. Resident non-citizens must hold a valid residence permit and provide the same supporting documents as citizens. Foreign nationals who are not residents may also register, but must present a valid visa and, where applicable, additional authorization to conduct business in Benin. In all cases, applicants must provide a criminal record extract or a declaration of good conduct issued within the past three months, along with standard identity documents.

Step 2: Choose your business name

You may use your own name or a trade name. Verify in advance that the name is not already in use or protected by trademarks. Use the government portal to check name availability.

Step 3: Gather required documents

Typical documents include:

• Valid identity document (national identity card or passport)
• Proof of residence/domicile
• Criminal record extract or sworn affidavit of good conduct (under 3 months old)
• Recent passport-style photos
• For foreign nationals: residence permit or visa
• Business address/proof of address
• For married persons, the marriage certificate (if applicable)

Step 4: Register with APIEx / GUFE

Use the MonEntreprise portal to register. You will fill in the formalization form, upload the required documents, and submit. APIEx / GUFE then validates your application and issues your registration certificate, the trade card (if applicable), and your tax identifier. Some in-person support may be available at local GUFE offices.

Step 5: Pay registration fees and contributions

The typical registration fee is about 10,000 XOF for a sole proprietorship, but additional fees may apply.

Step 6: Comply with post-registration obligations

After registration, you must declare your business start to the tax authority (Direction Nationale des Impôts et Domaines) and obtain your unique tax identification number, or your Identifiant Fiscal Unique (IFU). If you employ staff, register with Caisse Nationale de Sécurité Sociale (CNSS). You must maintain bookkeeping, file your tax returns per your regime, renew licenses when required, and update the registration if business activity or address changes.

Financial and tax obligations for sole proprietors in Benin

You are responsible for:

• Income tax / synthetic tax: Under the micro regime, you pay a turnover-based flat rate in lieu of income tax and VAT (for small turnover). Under the real (réel) regime, your net profit is taxed at a flat 30% corporate tax rate.
• VAT (GST): The standard VAT rate is 18 %. Registration for VAT is mandatory for turnover exceeding 50,000,000 XOF.
• Social security contributions: When you hire employees, you must register with CNSS and pay employer contributions.
• Record-keeping: You must maintain accurate records of invoices, receipts, expenses, and financial statements, as authorities may audit your books.
• Invoicing: Every invoice must include your IFU, business name, customer details, date, description of goods or services, amounts, and VAT if applicable. Invoices must be sequentially numbered and retained.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an entreprise individuelle in Benin?
There is no minimum capital requirement.

Do entreprises individuelles need to register for VAT?
Yes, if your turnover exceeds 50,000,000 XOF.

How much are the standard registration costs?
Around 10,000 XOF for registration plus additional fees.

Can an entreprise individuelle hire employees?
Yes. If you hire employees, you must register with CNSS and fulfill employer obligations for social security and payroll.

How long does registration take?
Using the GUFE / APIEx system, registration often completes within a few hours or the same day.

Can foreign nationals register as an entreprise individuelle in Benin?
Yes, if they have valid residence permits or visas and provide the required documentation.

Do entreprises individuelles need a separate business bank account?
While not legally mandatory, a dedicated business account is strongly recommended (and sometimes effectively required by APIEx or clients).

What happens if I stop working as an entreprise individuelle?
You must deregister via GUFE / APIEx, file final tax returns, settle outstanding obligations, and inform CNSS if you had employees.

Are there incentives or reduced rates for new entreprises individuelles?
Some sector- or location-based incentives may apply under the investment code, but explicit reduced flat rates for new sole proprietors are not widely documented.

Can I use Deel as an entreprise individuelle to get paid by international clients?
Yes. Deel supports freelancers and individual contractors, enabling you to receive payments from clients worldwide, across currencies, while facilitating compliance with local norms.

Does Deel generate compliant invoices for entreprises individuelles in Benin?
Yes — Deel’s invoice generation module supports local compliance norms, but you should review each invoice to ensure alignment with Benin’s requirements.

Can Deel help me with taxes as a sole proprietor in Benin?
Deel offers downloadable payment history, transaction reports, and summaries useful for bookkeeping. It is not a substitute for a local tax advisor, but simplifies record-keeping.

Does Deel offer contracts for freelancers and entreprises individuelles?
Yes. Deel provides legal contract templates suitable for adaptation to many jurisdictions, including for individuals in Benin.

Can I access benefits through Deel as an entreprise individuelle?
Yes. Deel may provide optional benefits such as health insurance, retirement savings, and other perks that are normally available to employees, offering added security for independent contractors.