Doing business in this country is lucrative, thanks to its relatively attractive business environment compared to other countries in Central Africa. With an advantageous location in the center of Africa, it is the best starting point for investors that wish to expand into the African market. Although its economy is small, with a GDP growth of 5.9%, one can say it’s growing at a stable rate. This makes it safe for foreign investors compared to other countries in West and Central Africa.
This guide provides information on how to buy an entity here, as well as the types of companies to look out for. If you are looking to buy an offshore establishment within this territory, then you have to read this.
Buying a Company
Anyone can purchase an entity online without having to travel to its location. However, this is risky and not advisable unless with the services of a hired agent. Buying an active or closed business is quite simple, there are tons of marketplaces online and Ads on the internet advertising business and investment opportunities for sale. This method, however, is prone to scams by business identity thieves, thus, it is not highly recommended unless you intend to hire a professional service provider based within the territory.
There are two steps to buying a business. Step one is searching for the desired company available for sale and ensuring its legibility through research. On SMERGERS, one of the numerous marketplaces, you will find a growing list of active and verified businesses for sale and investment opportunities.
For step two, one has to hire a service provider to stand in during the process of buying the company. Although you can do this yourself, it is recommended to hire an expert to facilitate the process smoothly.
Doing Business in Chad
According to the World Bank, the country ranks 111th of 183 economies for ease of doing business. With its stable economy though small, it is an attractive hub for corporations and business owners looking for cheaper costs of manufacturing. There are several opportunities in the markets such as the exportation of gum arabic and natural products like shea butter, and the production of commodities like meat products and other processed agricultural goods.
Types of Companies
The government regulates legal entities and commercial activities here. There are four forms of structures recognized by the Commercial Act. They include limited liability companies, public limited companies, General Partnership and Limited Partnership. Limited Liability Company is common among small business owners of small and medium-sized enterprises.
- Limited Liability Company (Société À Responsabilité Limitée – SARL) (LLC)
- Public Limited Company (PLC – SA)
- General Partnership (SNC)
- Limited Partnership (Société en Commandite Simple – SCS)
Limited Liability Company (Société À Responsabilité Limitée – SARL) (LLC)
Easily set up by small-sized business owners with little investments. Requires a small minimum share capital and can be set up by a maximum of two persons.
Public Limited Company (PLC) (Société Anonyme) (SA)
A large-scale business with large investments and shareholders. Must have large investors and shareholders to operate the establishment.
General Partnership (SNC)
Can have a large number of partners with shares in the company. There may be different types of partners funding the business.
Limited Partnership (Société en Commandite Simple – SCS)
As a limited number of partners can run the business. All partners must be shareholders and contribute to the share capital.
Features of a Company
Every company has its features and by knowing them one can make a good choice. The following are some of the features of a company:
- Liability of Shareholders
- Registered company address
- Minimum capital
- Shareholders/Partners, et cetera
