Chad SubsidiaryReading Time: 3 minutes
Setting up a subsidiary in Chad is essential to working in the country if you’re working on your own. However, sometimes it’s hard to learn how to set up a Chad subsidiary while navigating a brand new set of labor laws, employment compliance standards, and more. We’re the ones who can set up your company using our existing subsidiary by hiring employees who work for you, following all of Chad’s subsidiary laws, and handling compensation and benefits.
Best of all, you can relax knowing we’re responsible for compliance. We’ll act as the Employer of Record to shoulder all Chad subsidiary laws and compliance so that you can run your company every day without additional stress.
How to Set up a Chad Subsidiary
You need to consider certain factors before you set up your Chad subsidiary. First, your location is essential, as it can impact how quickly you can incorporate. Different cities and regions have different laws relating to availability, costs, and more. Choosing a physical office in a location that’s friendly to foreign investment will help you go through an easier incorporation process. A lawyer, accountant, or other expert can help you find the right location if you’re not familiar with the areas within Chad.
Another important aspect of setting up a subsidiary is choosing the right entity for your activities. Various entities also have their own Chad subsidiary laws. Your options include a limited liability company (LLC), public limited company, branch, and representative office. Many companies decide to use the LLC structure since it provides benefits to all parties.
The steps required to set up your Chad subsidiary as an LLC include:
- Copying articles of incorporation or bylaws
- Obtaining a decision of the General Assembly or a decision of the Board of Directors
- Providing proof of identity of all company executives and owners
- Providing criminal records or affidavits proving executives and owners have no criminal record
- Obtaining a residence permit
- Obtaining a lease or title for your property
- Taking three color photos of the Chief Executive Officer
- Paying for notary and registration fees
Chad Subsidiary Laws
Chad’s subsidiary laws are different both by region and by entity. LLCs need a minimum of one director and one shareholder who can be of any nationality, but corporate directors are not allowed. Minimum paid-up share capital has to be at least $2,000. If you make over $20,000 share capital in a year, you’ll need to do an annual audit.
Although it’s not required, we recommend opening a local bank account so that you can pay employees from your subsidiary. It takes about two weeks to set up a bank account and another 15 weeks to complete the entire Chad subsidiary setup process.
Benefits of Establishing a Subsidiary
Establishing a subsidiary will give you the benefit of finally working in Chad. Choosing an LLC will help you keep your subsidiary running separately from the parent company while also keeping the parent company protected from any litigation or fines. However, all these benefits are overshadowed by Globalization Partners’ Chad subsidiary outsourcing service.
Instead of spending your time learning how to set up a Chad subsidiary, you can get to work right away using our Chad PEO. We love seeing companies be productive in new countries from the start, which is why we’ll make it easy for you to begin operations in as little as a day. Plus, we’ll manage the risk for you so that you can focus exclusively on managing your company.
Everything You Need to Set up a Chad Subsidiary
Setting up a Chad subsidiary is a time-consuming process. We recommend clearing your schedule ahead of time to make sure you’re free to travel back and forth to Chad. If you can’t, take the time to appoint someone else in the company to take care of the subsidiary setup process. While you’re factoring in travel time, you should also look at travel cost. Make sure your company has the budget for a global expansion, including all the fees involved in the incorporation process.
Globalization Partners Can Help
Globalization Partners will help you work smarter, not harder. Contact us today for more information about Chad subsidiary outsourcing and our entire suite of global expansion services.