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)
- 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
|Also known as:||SARL||SA||Succursale||Bureau de liaison|
|How long to set the company up?||15 weeks||17 weeks||19 weeks||19 weeks|
|How long to open company bank account?||2 weeks||3 weeks||4 weeks||4 weeks|
|Wholly foreign owned?||Yes||Yes||Yes||Yes|
|Minimum paid - up share capital?||US$1,650||US$16,500||US$0||US$0|
|File annual tax return?||Yes||Yes||Yes||No|
|Tax registration certificate required?||Yes||Yes||Yes||Yes|
|Recommended corporate bank account?||Ecobank||Commercial Bank Tchad||Societe Generale Tchad||Orabank|
|Does our Client need to travel?||No||No||No||No|
|Resident shareholder required?||No||No||No||No|
|Minimum directors allowed?||1||1||1||1|
|Tax identification code needed?||Yes||Yes||Yes||Yes|
|Chad resident company secretary required?||No||No||No||No|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed?||No||No||No||No|
|Statutory audit required?||No||Yes||No||No|
|Chad corporate tax rate?||40%||40%||40%||0%|
|Annual financial statements required?||Yes||Yes||Yes||Yes|
|Regulated by?||National Agency of Investments and Exports in Chad||National Agency of Investments and Exports in Chad||National Agency of Investments and Exports in Chad||National Agency of Investments and Exports in Chad|
|Allowed to issue sales invoices?||Yes||Yes||Yes||No|
|Allowed to sign contracts?||Yes||Yes||Yes||No|
|Allowed to import and export goods?||Yes||Yes||Yes||No|
|Can rent an office space in Chad?||Yes||Yes||Yes||Yes|
|Can buy Chad property?||Yes||Yes||Yes||No|
|Can own equity in other Chad companies?||Yes||Yes||Yes||No|
|Total Chad business setup costs in yr. 1?||US$27,100||US$29,100||US$28,100||US$28,850|
|Subsequent annual costs (incl. accounting and tax fee)?||US$14,490||US$16,490||US$15,490||US$17,390|
|Sample engagement invoice?|