Practical Guide: Establishing Your Business in Chad as a Foreign Investor
Investing in Chad means entering a largely harmonised legal area: OHADA business law and CEMAC economic regulation. This guide reviews the questions to address before committing the first funds.
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Who is it for?
Foreign companies, investment funds, regional groups and diaspora entrepreneurs.
The steps
Choose the form of establishment
A Chadian subsidiary, a branch, a representative office, a joint venture with a local partner or the acquisition of an existing company: each option has different legal and tax consequences.
Identify the regime governing the activity
Check whether the activity is unrestricted or requires authorisation, and whether a sector regime applies: mining, hydrocarbons, energy, banking, telecommunications.
Secure the financial flows
Capital contributions, shareholder loans, dividends and payments abroad fall under CEMAC exchange-control regulations: declarations, domiciliation and supporting documents should be anticipated with the bank.
Review the incentives
The Investment Charter and certain special regimes grant benefits subject to conditions. Obtaining them requires an application and compliance with undertakings over time.
Organise recruitment
Local staff are covered by the Chadian Labour Code. Employing foreign workers requires a contract approved by the competent authority and compliance with residence rules.
Provide for dispute resolution
Include a clear clause in contracts: competent court or arbitration, governing law, language. For a significant investment, check the protections offered by the applicable treaties and conventions.
Documents and information to gather
- Parent company’s constitutional documents, translated and legalised where necessary
- Resolution of the competent body authorising the investment and appointing the representative
- Business plan and financing structure
- Draft articles or joint venture agreement
- List of sector authorisations to be obtained
- Proof of the origin of funds for the bank
Points to watch
- Keeping a branch indefinitely although OHADA law limits its duration for foreign companies.
- Neglecting to check the target company’s land titles and authorisations.
- Transferring funds without complying with exchange formalities, which later complicates the repatriation of dividends.
- Committing to a local partner without a shareholders’ agreement.
- Signing with a public entity without providing for an effective dispute-resolution mechanism.
Frequently Asked Questions
OHADA law does not require a local shareholder in commercial companies. Specific requirements may nevertheless arise from sector regimes or local-content rules.
The transfer of dividends and proceeds from a duly declared investment is permitted by the exchange-control regulations, subject to the formalities and supporting documents required.
It depends on the contract and the applicable texts: national courts, arbitration provided for by an agreement, or investment arbitration. Chad is a party to the Washington Convention establishing ICSID.
This information is general in nature and does not constitute legal advice. Every situation calls for specific analysis: please contact the firm before making any decision.
Need support?
The firm can review your file and assist you at each step.