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Ease of Doing Business in

Chad

Chad Download Profile (1742.5KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 14,037,472
GNI Per Capita (US$) 880
City covered N’Djamena

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 180 183 up
3
39.07 38.25 down
0.82
Starting a Business 182 186 up
4
51.91 41.92 up
9.99
Dealing with Construction Permits 133 131 down
2
62.00 62.23 down
0.23
Getting Electricity 179 179
-
32.17 33.53 down
1.36
Registering Property 157 155 down
2
44.74 44.89 down
0.15
Getting Credit 139 134 down
5
30.00 30.00
-
Protecting Minority Investors 158 157 down
1
38.33 38.33
-
Paying Taxes 189 188 down
1
18.76 18.76
-
Trading across Borders 171 170 down
1
40.12 40.12
-
Enforcing Contracts 154 153 down
1
44.58 44.58
-
Resolving Insolvency 146 145 down
1
28.13 28.13
-

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 182

DB 2016 Rank: 186

Change in Rank: up4

DB 2017 DTF (% points): 51.91

DB 2016 DTF (% points): 41.92

Change in DTF (% points): up9.99

Standardized Company
Legal form: Société à Responsabilité Limitée (SARL) - Limited Liability Company
Paid-in minimum capital requirement: XAF 100,000
City: N’Djamena
Indicator Chad Sub-Saharan Africa OECD high income
Procedure – Men (number) info_outline 9.0 7.8 4.8
Time – Men (days) info_outline 60.0 27.3 8.3
Cost – Men (% of income per capita) info_outline 159.8 54.0 3.1
Procedure – Women (number) info_outline 9.0 7.9 4.8
Time – Women (days) info_outline 60.0 27.5 8.3
Cost – Women (% of income per capita) info_outline 159.8 54.1 3.1
Paid-in min. capital (% of income per capita) info_outline 22.4 33.1 9.2
  • 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.
    1 day no charge
    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.
    1 day no charge
    3

    Notarize the company’s deeds and articles of association

    Agency: Notary

    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

    According to the decree N 1792/PR/MJDH/ 2015, the services of notaries are not mandatory. However entrepreneurs still use their services in practice.
    8 days XAF 248,558.99
    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)"
    2 days XAF 92,567.70
    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 see comments
    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.
    3 days 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:
    • Treasury
    • 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) no charge
    * 9

    Make a company seal

    Agency: Sealmaker

    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) XAF 18,000

    * Takes place simultaneously with previous procedure.