How To Start A Business in Chad
Doing Business in Chad
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Chad. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2015.
|No.||Procedure||Time to Complete||Associated Costs|
| ||1||Open a bank account, deposit the legally required initial capital in a bank and obtain deposit evidence
Agency: Commercial Bank
To enable the company to open this bank account, the notary delivers a certificate stating that the company is in the process of being incorporated.
| ||2||Check the uniqueness of the company name and pick up a company registration form
Agency: Clerk's office of the Commercial court
To avoid future lawsuits, the founders must pick a name that is not already in use. The Register now has a database with the names of all companies registered since 2004. Registrations prior to 2004 are not in the database. The search is done quickly.
| ||3||Notarize the company’s deeds and articles of association
Decree n°004/PR/PM/MJ/2010 of 05 January 2010 fixed the notary fees at a rate with declining basis as follows:
• From XAF 1,000,000 to 10,000,000, 5%, with the limit of XAF 300,000
• From XAF 10,000,001 to 50,000,000, 3% with the limit of XAF 750,000
• From XAF 50,000,001 to 100,000,000, 1.5%, with the limit of XAF 1,000,000
• From XAF 100,000,001 to 500,000,000, 1%, with the limit of XAF 2,500,000
• From XAF 500,000,001 to 1.000.000.000, 0.5%, with the limit of XAF 3,750,000
| ||4||Register the articles of association with the Service d’Enregistrement, des Domaines et du Timbre
Agency: Direction de l'Enregistrement et du Timbre
The fee is regulated by Arrêté n°015/MCIA/SG/2004 (fixant le taux d'obtention d'un acte administratif d'exercer des activités de commerce, d'industrie ou d'artisanat).
The following documents need to be submitted with the registrar.
• The Articles of association: XAF 6,000 (original + copies of meeting minutes + expedition)
• La déclaration de souscription du capital : 1,5% du montant du capital + les frais de timbres XAF 1,000 /page (the declaration is 1 page)
• Le Bulletin de souscription: XAF 3,000 + timbre (XAF 1,000/page multiply by the number of partners)
• Etat de souscription: XAF 3,000
Registration fees are as follow: XAF 10,000 (Fee for the CFE) + XAF 42,000 (Fee for ANIE) + XAF 8,000 (RCCM) + XAF 20,000 (Tresor public) + XAF 3,000 (Stamps) + XAF 5,000 (Chamber of commerce)"
| ||5||Register at the Centre de Formalité des Entreprises (Registration with RCCM, Administrative authorization from the Ministry of Commerce and Industry, Tax registration, Registration with CNSS)
Agency: Centre de Formalité des Entreprises
The cost depends on the category of the company. The documents to be provided are:
• Criminal records
• Articles of association
• Subscription of the declared capital
• Identification card (copy)
• Rental contract which must be notarized
|18 days on average
| ||6||Make a formal announcement through legal journals/newspapers proclaiming the existence of the company
Agency: Official journal or any legal journal
The publication is necessary to inform the public that the company now exists. The RCCM number and the address of the company must be provided.
||XAF 50,000 in legal journal, variable in a newspaper
|*||7||Pay the patente (Direction des Impôts)
Agency: Ministry of Finance (Direction des Impots)
The patente must be paid immediately after the NIF is obtained. The NIF is the identification for the payment of the VAT and IRPP.
Elements included in the calculation of the Patente:
Chiffre d'affaires (estimated in this case study to be FCFA 28,988,026) x 0.1% = DD (Droit Determiné).
CNPS = 10% of the DD
CCC = 7% of the DD
RAV = 3% of the DD
ONASA = 480 XAF (the company must pay this amount in full, whereas for the employee, it is only 40 XAF monthly)
TVLP = 10% of the annual rent paid by the company
The patent is done in 4 copies:
• The LLC itself
• Remain the file of the LLC
• Remain in the book
|1 day (simultaneous with procedure 6)
||XAF 250,422.36 (see details)
|*||8||Submission of the Internal Regulation Code to the Labor Inspection Office (Inspection du Travail)
Agency: Labor Inspection Office
This procedure is required for companies with 25 employees or more. The contract of employees will be checked to ensure that it is in accordance with the labor law and internal regulations.
|30 days (simultaneous with procedure 6)
|*||9||Make a company seal
According to OHADA rules, the company is required to have the number of the RCCM and the address on each invoice. A seal is done in practice to make the invoices more official, but it is not legally required.
|7 days (simultaneous with procedure 6)