Barely two years after Tunisia passed its Startup Act, 379 startups have now been registered under the Act, the last set –twenty-six startup labels– just awarded by the Ministry of Communication Technologies. Awarding the startup label is part of the “Startup Act” program, which has as its main objective, the promotion of those starting businesses in Tunisia or foreign businesses which are settling there.
The Tunisian Startup Act Has Given Startups In The Country A Voice
Unarguably, Tunisia leads other African countries in bold startup legislations. The Tunisian Startup Act, passed in May, 2018, puts in place the following measures in favour of startups:
- Tunisian Startup Act defines startups as an entity having legal existence not exceeding eight (08) years from the date of its constitution.
- More than two-thirds (2/3) of Tunisian startups’ capital must be natural persons, venture capital investment companies, collective investment funds, investment, seed money and any other investment body according to the legislation in force or by foreign Startups to qualify as startups under the Act.
- The business model envisaged by the Tunisian Startup Act is one that is highly innovative, utilizing cutting-edge technology.
Read also: Egypt’s Dsquares Secures New Funding For Expansion Outside Egypt
- Under the Act, any individual promoter of a Startup, public agent or employee of a private company, may benefit from the right to Startup Leave for creation of a Startup for a period of one year renewable once
- Any promoter of a Startup may benefit from a Startup scholarship for a duration of one (01) year. Only three (03) shareholders and full-time employees in the relevant Startup may however benefit from the scholarship awarded.
- Young graduates who create startups are free from taxation for three years.
- The profits from the sale of the securities relating to the shares in the Startups are exempt from the capital gains tax.
- Startup labels are also part of the innovations Tunisia’ s Startup Act has introduced.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer