There are many positive things happening and moving Tunisia forward especially in economy and business like the Startup act law which is considered as a revolutionary act, that has the potential to make Tunisia a startup nation and a digital hub.So what’s a startup? What’s a startup act law? and what advantages does it have for entrepreneurs?
What is a startup?
A startup is a temporary organization designed to seek a reproducible and scalable economic model, when we say startup, that means the experimentation of a new activity, on a new market, with a risk to assess.
The word startup is composed of two parts :
“Start” : for starting a new business.
“Up” : for the acceleration phase of the business.
To better understand the difference between a company and a startup, we can say that:
The company optimizes a business model and drives a maximum profit from it to bear its costs and remunerate its shareholders.
The startup is experimenting with its business model and testing its market
The Tunisian startup act law :
is a legal framework started in April of 2018 that presents a lot of advantages to any entrepreneur who wants to start a venture in Tunisia, and it’s a first in Africa until Senegal passed a similar law last year.
The advantages of startup act for Entrepreneurs :
as stated in the official website:
The Startup Grant:
It is an allowance given to the co-founder and shareholder of a startup being launched to cover the living expenses for one year.
Support by the State of the procedures and costs of registering startup patents at a national and international level.
Leave for Creation of Startup:
It is a leave of one year renewable once granted to the co-founder of a startup so that he dedicates himself full-time to the launch and development of his startup.The beneficiary of this leave may end it at any time and return to their original job subject to notice.
The SIVP and employment programs:
Any young graduate eligible for employment programs, including the SIVP which creates its startup and joins a startup as an employee can keep this advantage.
The Good Failure:
The startup act encourages good failure by promoting the amicable liquidation of startups through the combination of measures such as the guarantee fund for startups, exemption from corporate tax and state support of salary costs and employers.
Some of the perks of start up act for entrepreneurs and for startups :
1) Tax exemption for startups up to 8years.
2) State funded salary up to three founders for the first year.
3) Giving public and private sector employees one year to set up their new startup in which they have the right to return to their old job.
4) It’s legal to put up a foreign currency bank account.
5) The state fund all the licencing fees nationally and internationally
6) You have the right for up to 100KDT/year for your technological card.
To get the startup act label, you must available these terms :
1) Legal form company.
2) The age of the company is less than 8 years.
3) Turnover below 30 million dinars.
4) Number of employees less than 100.
5) Two thirds of the company belong to a civil person or investment fund or investment company.
6) An innovative idea.
7) Having the sense of rapid development in the market (scalability).
For more informations, you can visit the official website of the startup act:
Now in Tunisia you have no excuse to not start your project and pursue your dream of being your own boss and make a change and an impact in your society. We highly encourage you to start your own startup and we will provide you with the inspiration and with the knowledge you need to succeed.Don’t forget to subscribe to our Newsletter to get helpful articles and exciting news about the Tunisian startup ecosystem.