Spin off of economic companies

Legal framework

Law n°2005-56 of 18 July 2005 concerning the spin off of economic companies

Objectives

1- to assist and accompany promoters in setting up their companies
2- to contribute to the dynamics of setting up new companies, especially since Tunisia has set a target to implement 70,000 undertakings or projects by 2009

Practical framework

Companies that agree to spins offs make a commitment to supervise its relevant staff or promoters from the outside in giving concrete form to project ideas, to elaborate related studies, to finalize the financing schema, to obtain premiums and incentives, and to implement activities during the early years of operations.
Project implementation takes place in the framework of agreements signed by the company and the promoter, who define the contents of the project and the commitments of the two parts, in line with a model convention approved by a decree issued by the minister in charge of small businesses.

Incentives  

1- for the promoter
The promoter can take advantage of the possibility of taking special leave to set up a company, of the system for delegation and mobilization, or of the system to distribute operating income from discovery or invention patents, in line with current legislation.
2- for the spin off company
Deduction of expenditure committed in the framework of the tax base for individual income or corporate tax for the year during which expenditure was committed, up to 1% of annual gross turnover, with a ceiling of 30,000 dinars per project.