Country investment factsheet · OHADA business law
Legal & tax framework for investment — August 2026 edition
Series: OHADA country factsheets — a country-by-country overview of investment across the OHADA area.
A Sahelian oil economy and a member of CEMAC, Chad exports its production through the Chad-Cameroon pipeline linking the Doba basin to the Kribi terminal. A landlocked country whose economy also rests on livestock, cotton and agriculture, it applies the unified OHADA legal area and has a currency pegged to the euro. This factsheet summarises the macroeconomic, tax and legal data relevant to an entry decision, with particular focus on the legal securing of the investment.
Chad at a glance
A harmonised business-law framework
- OHADA — Chad applies the uniform business law of the Organisation for the Harmonisation of Business Law in Africa (17 member states, 9 Uniform Acts: companies, security interests, debt recovery, insolvency, arbitration, etc.). Disputes may be brought before the CCJA (Common Court of Justice and Arbitration), whose awards are enforceable across the 17 states.
- CEMAC — the Economic and Monetary Community of Central Africa, 6 states (central bank: BEAC); a common market and common foreign-exchange regulation. Reference: cemac.int.
- Revised SYSCOHADA accounting — the mandatory accounting framework, readable by any investor across the zone.
- Also a member of the African Union, the AfCFTA, OAPI (intellectual property) and CIMA (insurance).
Common OHADA company forms
| Form | Minimum capital | Typical use |
|---|---|---|
| SA (public limited co.) | XAF 10,000,000 | Codified governance, access to public savings |
| SAS (simplified joint-stock co.) | Set freely by the by-laws | Statutory flexibility — joint ventures, holdings |
| SARL (LLC) | Set freely by the by-laws | Simpler projects, light structure |
| Branch | Attached to the foreign company | OHADA duration limit to anticipate |
Registration with the RCCM; one-stop shop: ANIE (National Investment and Export Agency).
Tax regime — the essentials
| Tax | Rate | Details |
|---|---|---|
| Corporate income tax (CIT) | 35% | Among the highest in CEMAC. Regimes by turnover (lump-sum ≤ XAF 50M; simplified 50-500M; standard > 500M). Minimum tax: 1.5% of turnover, paid monthly. |
| VAT | 18% | 9% reduced rate on certain local products; 0% on exports. |
| Withholding taxes (non-residents) | Outside CEMAC 25% | Dividends 20%; interest 25% (5% within CEMAC); oil royalties 12.5%. CEMAC legal entities: 7.5%. |
| Tax treaties | CEMAC (multilateral) | No France-Chad tax treaty — France-related flows fall under domestic law (see “practitioner’s view”). |
Tax source: PwC Worldwide Tax Summaries — Chad (Aug 2024); to be cross-checked against the finance act in force.
Attractive sectors
- Oil — the main export; production evacuated through the Chad-Cameroon pipeline (Doba basin to the Kribi terminal); a specific oil tax regime.
- Livestock & cotton — traditional pillars of the economy and employment.
- Agriculture — a major share of GDP; local-processing potential.
- Energy & infrastructure — significant needs, notably to open up logistics corridors.
Investment incentives
- Investment Code — tax and customs benefits depending on the amount invested and the sector.
- ANIE (National Investment and Export Agency) — operates a one-stop shop bringing together the commercial-court registry, the tax administration and social security for incorporation and investment formalities.
- Oil sector — specific establishment conventions to be combined with OHADA law.
Work permits for expatriates
- Issuance of residence and work permits to expatriate staff holding a local contract.
- Free transfer of salaries to the home country, after payment of Chadian taxes and social contributions.
Foreign-exchange regulation
- CEMAC / BEAC framework. Cross-border financial transactions fall under CEMAC’s common foreign-exchange regulation (2018 Regulation), administered by the BEAC; it requires the repatriation of export proceeds, the domiciliation of operations and the channelling of transfers through approved intermediaries — a regime appreciably stricter than in other zones.
- Repatriation of dividends and capital. Transfer abroad of profits, dividends and disposal proceeds is permitted but conditional on documenting the flows and paying the taxes due — to be structured and documented from the moment of entry into the capital. Arrangements exist for oil operators.
- Good practice. Funding the investment in foreign currency and keeping documentary traceability of each flow secures the later transfer of funds — all the more so for a landlocked country whose logistics run through neighbouring corridors.
Regulation subject to change — precise terms (thresholds, supporting documents, timelines) to be checked with the BEAC and an approved intermediary.
Securing the investment — the UGGC angle (OHADA levers)
Beyond the figures, a successful entry rests on command of the legal framework. In a landlocked oil economy with no tax treaty with France and a demanding CEMAC foreign-exchange regime, contractual and tax structuring is decisive.
- CCJA arbitration — dispute resolution before OHADA’s Common Court of Justice and Arbitration; awards enforceable across the 17 member states.
- Security interests (Uniform Act) — a full range of guarantees (mortgage, pledge, autonomous guarantee, security agent) to secure oil and logistics financings.
- FX & repatriation — CEMAC/BEAC foreign-exchange rules (mandatory repatriation of export proceeds): structure dividend and capital repatriation upfront.
- Governance & compliance — OHADA company law, SYSCOHADA, oil establishment conventions, early-difficulty prevention.
Our teams support these transactions across M&A, tax law and litigation & arbitration (CCJA).
Our reading — the practitioner’s view
The figures don’t tell the whole story. Here are the points we flag to our clients before any entry into Chad — where field experience makes the difference.
Which structure to choose?
For a foreign operator, the choice is most often between the SA (codified governance, XAF 10,000,000 capital, access to public savings) and the SAS (statutory flexibility, freedom of governance and capital). The SARL remains suited to simpler projects. For an oil project, the architecture combines a local project company with a structure reflecting the oil regime and establishment conventions.
Three pitfalls investors underestimate
- 35% CIT and a monthly minimum tax. The CIT rate (35%) is among the highest in the zone, and the 1.5%-of-turnover minimum tax is due monthly — a cash-flow issue to anticipate in the business plan, especially during ramp-up.
- No tax treaty with France. Unlike Gabon or Congo, there is no France-Chad double-taxation treaty. Flows (dividends, interest, royalties, services) fall under domestic law, with a 25% withholding on income paid outside CEMAC — a decisive factor in any structure involving France.
- Landlocked status and CEMAC FX. Export logistics depend on neighbouring corridors (Cameroon) and repatriation of proceeds is mandatory (BEAC). Structuring foreign-currency financing and the logistics chain must be planned from entry into the capital.
From text to practice
ANIE and its one-stop shop are the operational entry point — incorporation and investment formalities combined. For oil projects, the interplay between establishment conventions, the oil tax regime and OHADA security interests conditions bankability. For regulated sectors, anticipating sector authorisations and their timelines remains essential to keep a project on schedule.
Frequently asked questions
What is the minimum capital to set up an SA in Chad?
The minimum capital for a public limited company (SA) is XAF 10,000,000. For the SARL and SAS, it is set freely by the by-laws. Registration is with the RCCM through the ANIE one-stop shop.
What is the corporate income tax rate in Chad?
The CIT rate is 35%, among the highest in the CEMAC zone. A minimum tax of 1.5% of turnover, paid monthly, remains due even where no profit is recorded.
What is the VAT rate in Chad?
VAT is 18% (standard rate), with a 9% reduced rate on certain local products and a zero rate on exports.
How can an investment be secured in the OHADA zone in Chad?
Investors benefit from OHADA’s CCJA arbitration (awards enforceable across the 17 member states), OHADA security interests, the SYSCOHADA framework, and must structure dividend repatriation upfront under CEMAC foreign-exchange rules. With no France-Chad tax treaty, France-related flows fall under domestic law.
Does Chad apply OHADA law?
Yes. Chad is one of the 17 OHADA member states. It applies the 9 Uniform Acts (companies, security interests, debt recovery, insolvency, arbitration, etc.) and is part of CEMAC and the revised SYSCOHADA accounting framework.
Considering an entry into Chad?
Contact the UGGC Africa team · Download the country factsheet (PDF)
Disclaimer. This country factsheet is provided for general information, as at August 2026; it does not constitute legal or tax advice and cannot bind UGGC Africa. The figures are drawn from public sources and are subject to change (notably through Chadian finance acts). Any investment decision should be the subject of a tailored analysis.
Sources: IMF (World Economic Outlook / Chad 2025-2026) · World Bank · UN / Worldometer (population) · PwC Worldwide Tax Summaries — Chad (Aug 2024) · ANIE · CEMAC tax convention · BEAC (2018 CEMAC foreign-exchange Regulation) · OHADA · BEAC · CEMAC · uggcafrica.com.