Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Chad. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Open a bank account, deposit the legally required initial capital in a bank and obtain deposit evidence | 1 day | no charge |
| 2 | Check the uniqueness of the company name and pick up a company registration form | 1 day | no charge |
| 3 | Notarize the company’s deeds and articles of association | 8 days | XAF 172,760 |
| 4 | Register the articles of association with the Service d’Enregistrement, des Domaines et du Timbre | 2 days | XAF 121,656 |
| 5 | Register at the Centre de Formalite des Entreprises (Registration with RCCM, Administrative authorization from the Ministry of Commerce and Industry, Tax registration, Registration with CNSS) | 2-3 weeks | XAF 10,000 (Fee for the CFE) + XAF 42,000 (Fee for ANIE) + XAF 8,000 (RCCM) + XAF 20,000 (Tresor public) + XAF 3,000 (Stamps) + XAF 5,000 (Chamber of commerce) |
| 6 | Make a formal announcement through legal journals/newspapers proclaiming the existence of the company | 3 days | XAF 50,000 in legal journal, variable in a newspaper |
| * 7 | Pay the patente (Direction des Impots) | 1 day (simultaneous with procedure 6) | XAF 247,390 (see details) |
| * 8 | Submission of the Internal Regulation Code to the Labor Inspection Office (Inspection du Travail) | 30 days (simultaneous with procedure 6) | no charge |
| * 9 | Make a company seal | 7 days (simultaneous with procedure 6) | XAF 18,000 |
* Takes place simultaneously with another procedure.