Chad

Starting a Business in

Chad

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  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 (GNI).

The information appearing on this page 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 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Société à Responsabilité Limitée (SARL) - Limited Liability Company
  • 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:
- de 1.000.000 à 10.000.000, 5%, sans dépasser la somme de 300.000 F CFA
- de 10.000.001 à 50.000.000, 3% sans dépasser la somme de 750.000 F CFA
- de 50.000.001 à 100.000.000, 1.5%, sans dépasser la somme de 1.000.000 F CFA
- de 100.000.001 à 500.000.000, 1%, sans dépasser la somme de 2.500.000 F CFA
- de 500.000.001 à 1.000.000.000, 0.5%, sans dépasser la somme de 3.750.000 F CFA




 8 days XAF 129,309
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: FCFA 6 000 (original + copie minute + expedition)
• La déclaration de souscription du capital : 3% du montant du capital + les frais de timbres 1000 FCFA/page (the declaration is 1 page)
• Le Bulletin de souscription: 3000 FCFA + timbre (1000/page multiply by the number of partners)
• Etat de souscription: FCFA 3000

 2 days XAF 95,586
5 Obtain administrative authorization from the Ministry of Commerce and Industry

The cost depends on the category of the company. The documents to be provided are:
-Criminal records
-Medical certificate
-Article of association
- Subscription of the declared capital
- Identification card (copy)
- Rental contract which must be notarized
The secretary General signs the authorization.

 8 days XAF 20,000 + Stamps of XAF 3,000 (bought from Service des domaines) + Imprime d’autorisation XAF 5,000 (bought at the Chamber of commerce)
6 Register the company with the Registry of Commerce and Real Estate (Registre de Commerce et du Crédit Immobilier)

Cost is based on official fee schedule as published by the Registre du Commerce. Detail of cost is FCFA 10, 000 for the Treasury and FCFA 2,500 for the fees of the Greffier.
At the time of registration, the entrepreneur can submit a sworn declaration instead of a copy of the criminal records. She/he will need to send the copy of the criminal records within 75 days after the incorporation of the company.
3 days XAF 12500
7 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
8 Register the company for taxes with the central tax services of the Ministry of Finance (Direction des Impots), pay the Patente and obtain a fiscal number

The NIF is obtained after the company is registered. The patent 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 Patent:

Chiffre d'affaires (estimated in this case study to be FCFA 27,081,2471) *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 XAF 245,896 (see details)
9 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 no charge
10 Registration with the Social Security Institute (Caisse Nationale de Prévoyance Sociale)

This is a mandatory requirement. When the company is registered a booklet is given to the employer. It is in this booklet that salaries will be written to allow the calculation of the amount to be retained on the gross salary.
2 days no charge
11 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 XAF 18,000
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