Starting a business in Chad

If you want to start a business in Chad, here is all you need to know. In this article, we present general and economic data on Chad, its economic assets and growth sectors, the procedures for setting up a business and the obstacles to be overcome.

General data on Chad, its potential and its economy.

Located in Central Africa, Chad has been an oil-producing country since the 2000s. It is a potentially rich country in which many multinationals are established. If you wish to invest in Chad, here is some useful information.

The potential of Chad.

Here are a few reasons to invest in Chad, or to create a business there:

  • Chad has important natural resources: oil, cotton, sugar cane, gum arabic, peanuts…
  • The country has a young population (average age 17.1 years),
  • Chad is a developing country. It needs to build the infrastructure necessary for social and economic development, which provides many business opportunities,
  • Chad is an African country with a positive trade balance,
  • Chad has a very significant fishing potential. The fishing sub-sector offers investment opportunities, particularly the use of modern techniques,
  • From a tourist point of view, Chad has a wide variety of relief (savannah plains, deserts dotted with rugged terrain), hundreds of species of birds and animals, and UNESCO World Heritage sites and parks,
  • Chadian industry is still in its infancy. Investment opportunities therefore exist in areas such as oil exploration and construction.

Promising sectors of the Chadian economy.

In which sectors should you invest in Chad?

  • The primary sector (61.2% of GDP in 2012): This is Chad’s main feeder sector, which includes three main areas of activity: agriculture, animal husbandry and mining. Therefore, if you are interested in investing in Chad, we strongly advise you to choose one of these three areas. Indeed, the Chadian State has significant oil reserves, less than a third of which are being exploited. In addition, despite the numerous exploration licenses that have been granted, very few companies have already begun exploration. The oil industry accounts for 39.3% of GDP.
  • Chadian and abounds with numerous business opportunities. Agriculture accounts for about 10.5 percent of GDP but employs 80 percent of the labor force. There are also countless opportunities in this field.
  • The secondary sector: This includes activities related to the processing of raw materials from the primary sector. The main promising activities in this sector are: construction and public works (Chad is a country under construction), power generation (the country suffers from numerous power cuts), and handicrafts.
  • The tertiary sector: The tertiary sector encompasses all economic activities in the services sector. The main promising activities in this sector are banking, insurance, telecommunications, tourism, etc.

The procedure for setting up a business in Chad.

Who to contact?

To create a business in Chad, go to the Center for Business Formalities (CFE) which is a one-stop shop that brings together in one place all the administrations involved in the creation procedure.

What formalities must be completed, and for what types of businesses?

For the creation of a natural person :

Here is the list of documents to be provided for the creation of a sole proprietorship:

  • An extract from the criminal record dated less than three months ago or a signed sworn statement from the applicant.
  • A certified photocopy of a valid piece of identification and the marriage certificate if applicable
  • A legalized copy of the prior ministerial authorization for specific activities
  • A residence certificate less than three months old, a commercial lease or a declaration of sincerity
  • Three passport photos

Creation costs: 38 000 FCFA plus 3 000 FCFA stamp duty.

For the creation of a legal entity :

The documents to be provided are the following:

  • An extract from the criminal record dated less than three months ago or a declaration on the applicant’s honor signed by the applicant.
  • A certified photocopy of a valid piece of identification and the marriage certificate if applicable
  • A legalized copy of the prior ministerial authorization for specific activities
  • A residence certificate less than three months old, a commercial lease or a declaration of sincerity
  • Three passport photos
  • A certified photocopy of the statutes registered with the domain department.
  • The declaration of regularity and conformity or a notarial statement of subscription and payment
  • The certified list of managers, directors, officers or partners

Creation costs :

  • SARL, SCI, SNC, SCS : 85 000 FCFA plus 3 000 FCFA of stamp fees
  • SA : 110 000 FCFA plus 3 000 FCFA stamp duty

Taxation in Chad.

There are two main types of direct and indirect taxes in Chad, the main rates of which are as follows:

Direct taxes.

  • Corporate income tax: 40 percent
  • Personal income tax
  • Property Income Tax
  • Tax on profits from industrial, commercial, artisanal, agricultural and mining activities
  • Tax on the remuneration of the majority managers of limited liability companies and limited partnerships
  • Tax on income from movable capital.

Indirect taxes.

  • The Value Added Tax
  • The tax on financial activities
  • Consumer rights.

Learn more: https://employerofrecord-africa.com/chad-employer-of-record-services/