The Formalities Center (Centre de Formalité des Entreprises) at the Chadian Chamber of Commerce, is in charge of company registration in Chad. There are five main types of companies in Chad
Types of companies in Chad
The types of companies in Chad are explained below
Corporation (Societé Anonyme, SA)
At least seven shareholders are required. Shareholders’ financial liability is restricted to their capital contributions.
A SARL (Societé a Responsabilité Limitée)
This is a limited liability company with a minimum of two individual partners. Without the permission of 3/4 of the SARL partners, ownership cannot be transferred.
Affiliate or Branch Office (Succursale)
A foreign corporation may open a branch office in Chad either alone or in collaboration with a Chadian partner.
Economic cooperative
An association between a group of firms or organizations to gain a competitive advantage. Agricultural producers and artisans use it frequently.
Sole Proprietorship (Entreprise individuelle)
A private company with unlimited liability held by one person. To qualify, foreigners must have a valid residence permit granted within the last three months and a copy of a commercial lease.
Registration procudecures
Registration fees vary depending on the type of business. Corporation ($183), Limited Liability Company ($133), Corporate affiliate or branch office ($550), Economic Cooperative ($142), and Individual Enterprise ($63) are the fees based on a 600 Franc CFA to $1 exchange rate. The following are the steps involved in forming a company in Chad
Opening a bank account
Open a bank account, deposit the legal minimum initial capital, and obtain deposit proof. The notary issues a certificate declaring that the firm is in the process of being established, which allows the corporation to open this bank account.
Picking a business name
Check the company name for uniqueness and pick up a company registration form from the Commercial Court clerk’s office. The founders must choose a name that is not currently in use to avoid future disputes. The Register currently includes a database of all firms that have been registered since 2004. The database does not include registrations made before 2004. The lookup is completed promptly.
Notarizing the articles and deeds of incorporation
Have the deeds and articles of incorporation notarized. Depending on the nature of the business, the notary fee ranges from XAF 300,000 to XAF 3,750,000.
Filling the articles of incorporation
File the articles of incorporation with the Service d’Enregistrement, Domaines et Timbre. The documents which must be presented to the registrar are; Articles of Association, La déclaration de souscription du capital, Le Bulletin de subscription, and Etat de souscription. The total registration fee costs XAF 92,567.70.
Registration
Register at the Formalities Centre (Registration with RCCM, Administrative authorization from the Ministry of Commerce and Industry, Tax registration, Registration with CNSS). Criminal records, articles of association, subscription of the declared capital, identification card (copy), and a rental contract that must be notarized are all required documents.
An announcement in journals and publications
Make a formal notice about the company’s existence in legal journals and publications. The publication is required to alert the public of the company’s existence. The company’s RCCM number and address must be provided. The cost of publication in a legal journal is XAF 50,000, however, the price in newspapers varies.
Payment of the patente
The patent must be paid to the Ministry of Finance (Direction des Impots). After receiving the NIF, the patent must be paid promptly. The NIF serves as identification for VAT and IRPP payments.
Inspection by the Labour office
The Labor Inspection Office receives the Internal Regulation Code. Companies with 25 or more employees must follow this procedure. Employee contracts will be scrutinized to ensure that they comply with labor laws and organizational policies.
Creating a seal
Create a company seal: The RCCM number and address must be included on each invoice, according to OHADA regulations. A seal is used to make bills appear more official, but it is not needed by law.
