Financial Crime World

Chad’s Financial Regulations Under Scrutiny as Business Environment Improves

As Chad continues to attract foreign investors and improve its business environment, compliance with financial regulations has become a pressing concern for companies operating in the country. With the tax year running from January 1st to December 31st, it is essential for businesses to stay up-to-date on accounting standards and reporting requirements.

Overview of Financial Regulations

The Organisation for the Harmonisation of Business Law in Africa (OHADA) plays a crucial role in shaping Chad’s financial regulations. The Uniform Act Relating to Commercial Companies and Economic Interest Groups serves as the guiding framework for all listed companies and those making public calls for capital, requiring them to adhere to International Financial Reporting Standards (IFRS).

IFRS Requirements

According to OHADA, companies with more than 100 shareholders are also required to use IFRS standards, regardless of whether their securities trade in a public market or not. This is in line with the Uniform Act Relating to Commercial Companies and Economic Interest Groups.

Annual Financial Statements

Annual financial statements must include:

  • A balance sheet
  • Profit and loss account
  • Cash flows statement
  • Notes to the financial statements

According to OHADA’s Uniform Act on the Organization and Harmonization of Corporate Accounting, these reports must be adopted within four months following the closing of the fiscal year.

Auditor Requirements

The Ordre National des Professionnels Comptables du Tchad (ONPCT) is responsible for certifying accountants and overseeing auditing activities in Chad. Private limited companies with a balance sheet exceeding 125 million CFA francs, annual turnover above 250 million CFA francs, or more than 50 permanent staff must appoint at least one auditor.

  • Public limited companies are subject to supervision by one or more auditors.
  • The appointment of an auditor is optional for private limited companies that do not meet these criteria, but can be requested in court by members holding at least one-tenth of the stated capital.

Conclusion

As Chad’s business environment continues to evolve, ensuring compliance with financial regulations will be essential for companies looking to establish a strong foothold in the market. With OHADA and the ONPCT working to harmonize accounting standards and ensure transparency, businesses can trust that they are operating in a stable and regulated environment.