How to Register a Sole Proprietorship in Chad

Located in the central part of Africa, Chad's economy is mainly based on livestock and cotton production. Since 2000, the exploitation of oil from this country has begun. Chad has about 16 million residents, while the capital N'Djamena has about a million residents. Business areas with good business opportunities are agriculture, fishing, telecommunications, and tourism.

Disclaimer: This article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.

Sole proprietorship in Chad

A sole proprietorship is a business entity owned by an individual. You, as a sole proprietor, have unlimited liability with the sole proprietorship. That means that you are responsible for all revenues, costs, profits, and debts of the business. A sole proprietorship is the most frequent form of business entity in Chad.

How to register a sole proprietorship in Chad

Sole proprietorship registration in Chad is a straightforward process. To register, you need to submit the following documents to the Formalities Center (Centre de Formalité des Entreprises) at the Chadian Chamber of Commerce:

• Copy of articles of incorporation or bylaws and annexes
• The decision of the General Assembly (Societé Anonyme)
• ID card
• Criminal records or affidavit of no criminal record
• Residence permit (for foreigners)
• Lease or title of Property
• Three photos

Registration costs

Notary and registration fees are approximately $280 plus 1.5- 5% of the business capital. The registration fee for a sole proprietorship in Chad costs around $63.

Choose a business name for your proprietorship

You should ensure that the business name you would prefer is not taken already. Trading under someone else's name can lead to a potential lawsuit. You can check the availability of the name at the Chadian Chamber of Commerce.

Tax registration for sole proprietors in Chad

Tax registration is an important and mandatory step for all sole proprietors. You should register with the Guichet Unique and request a tax registration form. 

The documents to be provided for the tax registration are: 

• Criminal records (or stated declaration) 
• Articles of association
• Subscription of the declared capital 
• Copy of the ID card
• Lease agreement 

You will obtain a Tax Identification Number (TIN) after the registration. 

There are three tax regimes for businesses in Chad: normal, simplified, and flat tax rate regimes. The model is decided by the tax authority based on the business' turnover. All businesses that apply to the normal or simplified tax regime should file and pay taxes monthly.

The Value Added Tax (VAT) in Chad is applied at the 18% rate.