How To Launch A Startup In Tunis

Located on the northern tip of Africa, Tunisia may be small in size but is becoming increasingly popular for startups. Filled with ancient history and charm, it has come to embrace modern innovation and the new ventures that come along with it.

While travellers may embark there to enjoy the sandy beaches of Sousse or witness the ruins of Carthage, more entrepreneurs have their eye on the capital, Tunis.

So what makes this city an attractive base for startups? And how could one set up a business there? Let’s find out.

 

Why Start A Business In Tunis?

 

Of course, Tunis may not necessarily be the first location that comes to mind when looking to start a business. However, there are several compelling reasons to convince entrepreneurs otherwise.

Location: In addition to trade opportunities within Africa, Tunis is incredibly close to Europe. In fact, Italy is just a one hour flight away! This opens the door for trading internationally especially across Europe and the Middle East.

Affordable living: The cost of living in Tunis is considerably lower than other capitals like Dubai or London. This makes it much easier to start a business and manage day-to-day living expenses.

Government support: Tunisia’s government is highly supportive of digital entrepreneurship and offers initiatives to welcome entrepreneurs in this space.

Startup guidance: There has been a spike in accelerator and incubator programmes in recent years, offering assistance to new startups.

 

Industries With High-Growth Potential

 

If you have your eye on Tunis as a destination for your business, it’s crucial to know which sectors are thriving and which are not quite there yet. Here are a few industries that have really taken off.

IT and software development: With government initiatives, more companies are being encouraged to digitise their offerings. As a result, Customer Relationship Management (CRM) platforms, custom SaaS tools and IT consulting are in massive demand.

Agriculture: While this employs a significant amount of the population, some farming techniques are heavily outdated. This has led to a need for agritech like crop monitoring AI-driven data tools for precision agriculture.

Mobile payments: Small or online businesses in addition to those in rural areas need cashless payment systems so plenty of opportunities exist for e-wallet apps and payment gateways.

Clean energy: With more than 300 days of sunshine annually, Tunis is a great spot for solar projects including the installation of panels and home battery systems.

 

Accelerator And Incubator Programmes In Tunis

 

Tunis home to a range of accelerators and incubators, all created to help fast-track startups and their success. These offer support mostly in the form of funding or networking opportunities.

Flat6Labs Tunis: This is a top accelerator in North Africa providing new ventures with seed funding, training and the chance to connect with investors.

The Dot: An incubator that is supported by the government specifically for tech and digital startups,

Startup Haus Tunis: A co-working space that offers events and trainings for startups in their early stages.

B@Labs: Supported by Banque Internationale Arabe de Tunisie, this initiative helps startups across multiple sectors.

 

 

Funding Opportunities For Startups

 

Entrepreneurs know that securing the right amount of funding is critical to a startup’s success. Fortunately, there are multiple avenues to consider in Tunis specifically.

Venture capital: VC firms like AfricInvest are heavily involved in investing in new startups within Tunis.

Angel investors: Angel Investors Tunisia and Carthage Business Angels are worth looking into if you are considering using angel investors.

Startup Act: In 2018, the government passed the Startup Act. This exempts new startups from tax for up to 8 years while offering access to the Startup Investment Fund and covering the salary of company founders for their first year.

 

Visa Requirements For Foreign Entrepreneurs

 

For non-Tunisian residents wanting to start a business in Tunis, these are the visa options available to choose from as long as the specific criteria is met.

Short-Term Stay: Valid for up to 90 days and EU, American and Canadian citizens can enter without a visa.

Residency Permit: This is required to be able to run a business legally. Applicants will need to produce proof of income and a business registration certificate. In some cases, depending on the sector, a local sponsor may also be a requirement.

Startup Visa: This is a one-year renewable visa where holders can start a business without having a local shareholder.

 

How To Start A Business In Tunis

 

If you are ready to move forward with starting a business in Tunis, here is a step-by-step guide on how you can get up and running smoothly.

 

Select A Business Entity

 

The first step is to choose a legal structure. In Tunis, there are four options that are commonly used.

Sole Proprietor: Suitable for one individual.

Limited Liability Company: The most popular option for startups.

Single-Member SARL: Also suited to solo founders.

Joint Stock Company: Ideal for big businesses who have multiple shareholders.

 

Register The Business

 

You can then proceed with reserving your desired business name at the Court of First Instance. All business documentation will either need to be submitted to the Agence de Promotion de l’Industrie et de l’Innovation or the Centre de Formalités des Entreprises.

This will include your articles of incorporation, a lease agreement if you have an office space, ID of founders and a bank certificate to show that your capital amount has been deposited.

 

Open A Business Bank Account

 

You can then open a corporate bank account at a local bank such as UBCI or BIAT and deposit the minimum capital amount required depending on which business structure you have selected.

 

Apply For Tax And Social Security

 

To get your tax ID, you will need to register with the Tax Authority and enrol with the National Social Security Fund for employee benefits if you are hiring employees.

 

Should You Launch A Startup In Tunis?

 

Tunis, and Tunisia on the whole, has made great strides in welcoming new startups through government support, funding opportunities as well as through accelerator and incubator programmes. The implementation of the Startup Act is just one example of this and the potential reward for new ventures is huge.

So if you are ready to make your next big move, Tunis might just be the place where your startup journey begins.

Good luck!