Chad

Starting a 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 up to 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 185 economies. The most recent round of data collection was completed in June 2012.

Compare Chad to 184 other economies.

  • Standardized Company

  • Legal Form: Société à Responsabilité Limitée (SARL) - Limited Liability Company
  • Paid in Minimum Capital Requirement: XAF 1,000,000
  • City: N’Djamena

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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

To enable the company to open this bank account, the notary delivers a certificate stating that the company is in the process of be incorporated.
1 day no charge
2 Check the uniqueness of the company name and pick up a company registration form

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

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





 8 days XAF 172,760
4 Register the articles of association with the Service d’Enregistrement, des Domaines 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 + copie minute + expedition)
• La déclaration de souscription du capital : 3% 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

 2 days XAF 121,656
5 Register at the Centre de Formalite des Entreprises (Registration with RCCM, Administrative authorization from the Ministry of Commerce and Industry, Tax registration, Registration with CNSS)

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


2-3 weeks 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)
6 Make a formal announcement through legal journals/newspapers proclaiming the existence of the company

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 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) *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 247,390 (see details)
* 8 Submission of the Internal Regulation Code to the Labor Inspection Office (Inspection du Travail)

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

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 another procedure.
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