Business entities in Chad

Business entities in Chad

Healy Consultants will assist our Clients with incorporating the optimum corporate structure in Chad. As outlined in the table below, the most common business entity used by foreign investors in Chad is the Chad limited liability company. Our Clients may however also setup a public limited company, a branch or a representative office.

The Chad limited liability company (SARL)

    business entity types and setup requirements in chad

  • A Chad LLC must appoint 1 director and 1 shareholder of any nationality for the incorporation process to be complete. The minimum paid-up share capital required is US$ 2,000 for Chad business setup. Corporate directors are not allowed;
  • An annual audit is required if the company share capital is above US$20,000.

The Chad public limited company (SA)

  • The Chad public liability company requires one shareholder and one director of any nationality to incorporate. Minimum paid-up share capital required is US$20,000;
  • After Chad company setup, this type of business entity must submit an annual audit, for which 2 auditors must be appointed.

The Chad branch (succursale)

The Chad branch may be 100% foreign owned and is allowed to engage in business activities related to the parent company within Chad. Only one shareholder and one director, who must be resident in Chad, are required for registration of a branch in Chad. However, the corporate tax rate for the branch is very high at 40% making this the least efficient tax option for business setup in Chad.

The Chad representative office (bureau de liaison)

The Chad representative office is established solely for market research and promoting business of the parent company and is not allowed to pursue production-related or commercial activities.

Table of comparison between Chad business entities

 LLCPLCBranchRep Office
Also known as:SARLSASuccursaleBureau de liaison
How long to set the company up?15 weeks17 weeks19 weeks19 weeks
How long to open company bank account?2 weeks3 weeks4 weeks4 weeks
Legal liability?LimitedLimitedUnlimitedUnlimited
Wholly foreign owned?YesYesYesYes
Minimum paid - up share capital?US$1,650US$16,500US$0US$0
File annual tax return?YesYesYesNo
Tax registration certificate required?YesYesYesYes
Recommended corporate bank account?EcobankCommercial Bank TchadSociete Generale TchadOrabank
Does our Client need to travel?NoNoNoNo
Resident shareholder required?NoNoNoNo
Minimum directors allowed?1111
Minimum shareholders?1111
Tax identification code needed?YesYesYesYes
Chad resident company secretary required?NoNoNoNo
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?NoNoNoNo
Statutory audit required?NoYesNoNo
Chad corporate tax rate?40%40%40%0%
Annual financial statements required?YesYesYesYes
Regulated by?National Agency of Investments and Exports in ChadNational Agency of Investments and Exports in ChadNational Agency of Investments and Exports in ChadNational Agency of Investments and Exports in Chad
Allowed to issue sales invoices?YesYesYesNo
Allowed to sign contracts?YesYesYesNo
Allowed to import and export goods?YesYesYesNo
Can rent an office space in Chad?YesYesYesYes
Can buy Chad property?YesYesYesNo
Can own equity in other Chad companies?YesYesYesNo
Total Chad business setup costs in yr. 1?US$27,100US$29,100US$28,100US$28,850
Subsequent annual costs (incl. accounting and tax fee)?US$14,490US$16,490US$15,490US$17,390
Sample engagement invoice?Chad LLC setup costChad PLC setup costChad Branch setup costChad RO setup cost

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Contact us

For additional information on our company setup services in Chad, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Paavan Chhabra, directly:
client relationship officer - Paavan