Operating a Business

flag Chad Chad: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited Liability Company (LLC/SARL)
Number of partners: minimum one shareholder and one director, which may be of any nationality
Capital (max/min): minimum capital XAF 1 million
Shareholders and liability: liability is limited to the shares
Public Limited Company (PLC - SA)
Number of partners: minimum one shareholder and one director, of any nationality
Capital (max/min): minimum capital XAF 10 million
Shareholders and liability: liability is limited to the extent of the shareholders contributions
General Partnership (SNC)
Number of partners: minimum two
Capital (max/min): n/a
Shareholders and liability: partners have joint and unlimited liability
Limited Partnership (Société en Commandite Simple - SCS)
Number of partners: minimum one with limited liability and one with unlimited liability
Capital (max/min): n/a
Shareholders and liability: limited partners who do not participate in management have limited liability. However, general partners or managing partners have joint and unlimited liability
The Competent Organisation
National Agency of Investments and Exports
Company Directories
Trade Register (RCCM)
 
Setting Up a Company Chad Sub-Saharan Africa
Procedures (number) 8.0 7.5
Time (days) 58.0 21.3

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Chad.

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The Active Population in Figures

201820192020
Labour Force 5,789,1125,986,3155,983,843

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 70.99%70.86%70.72%
Men activity rate 77.64%77.36%77.04%
Women activity rate 64.38%64.41%64.43%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
The legal employment’s duration is 39 hours per week (art. 194 of the Labour Code).
A rest day per week is mandatory (generally on Sundays), and it has to consist of at least 24 consecutive hours.
Retirement Age
Age 60 (55 if prematurely aged) with at least 180 months of coverage.
Working Contracts
According to art. 50 of the Labour Code, employment contracts can be either oral or written. In case a working contract is in written, it is exempted from stamp duties.
Working contracts can be concluded for a fixed term, opened ended or for a specific task. An employment contract must be in written if it is concluded for a fixed term (maximum two years) or for a specific task (art. 59).
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises. Labour Code (in French)

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Cost of Labour

Minimum Wage
There is no minimum legal salary in Chad. The interprofessional guaranteed minimum wage (salaire minimum interprofessionnel garanti - SMIG) is agreed between the trade unions and employers’ associations.
Average Wage
Salaries in Chad differ drastically between different jobs. According to Salaryexplorer.com, the median salary is around XAF 496,000.
Social Contributions
Social Security Contributions Paid By Employers: 16.5% (capped at XAF 82,500 per month)
Social Security Contributions Paid By Employees: Total of 20% of the gross salary:
Employer: 16.5% of the gross salary capped at XAF 500,000 per month;
Employee: 3.5% of the gross salary capped at XAF 500,000 per month.

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Social Partners

Social Dialogue and Involvement of Social Partners
The Chadian law provides for the right of all workers to form and join independent unions of their choice (with the exception of members of the armed forces), however all unions must be previously authorized by the Ministry of Public Security and Immigration. Approved trade unions can bargain collectively. Except for civil servants and employees of state enterprises, workers have the right to strike, provided that it is notified at least 72 hours before (imprisonment with hard labour applies for participation in an illegal strike). The labour code prohibits antiunion discrimination.
Unions
Union of Trade Unions of Chad (Union des Syndicats du Tchad)
Free Confederation of Chadian Workers (CLTT) (Confédération Libre des Travailleurs du Tchad)
Unionisation Rate
More than 90% of employees in the formal sector belong to unions (US Country Reports on Human Rights Practices).
Labour Regulation Bodies
Ministry of Public Security and Immigration

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Latest Update: April 2022