The Startup Act is one of the most attractive schemes for building an innovative company in Tunisia: a grant for founders, corporate tax exemption, social contributions paid by the state, a foreign-currency account. But the label isn't automatic, and it isn't for every company.

This guide explains what the Startup label is, the conditions to get it, the real benefits, the procedure and the mistakes to avoid, based on law no. 2018-20 and its implementing decree.

In short

  • The Startup label is granted to a commercial company under 8 years old, with at most 100 employees, 15 million TND in total assets and 15 million TND in turnover, whose capital is more than two-thirds held by individuals or investors, and with a highly innovative model.
  • Benefits: corporate tax exemption and social contributions paid by the state while the label is valid, a grant of 1,000 to 5,000 TND net a month for a year for founders, leave to create a startup, a special foreign-currency account.
  • You can apply for a 6-month pre-label before the company even exists.
  • The committee must answer within 30 days; without an answer within 60 days, the label is deemed granted.

What is the Startup label?

Under article 2 of law no. 2018-20 of 17 April 2018 on startups, a startup is any commercial company set up in accordance with the law that has obtained the Startup label. In other words, a startup isn't a legal form: it's a label added to an existing company, most often a SARL, a SUARL or an SA.

So you first create the company (see our comparison SARL or SUARL in Tunisia), then apply for the label. Or apply for a pre-label before incorporation, as explained below.

The conditions to get the label

Article 3 of the law and article 3 of government decree no. 2018-840 set five conditions:

ConditionThreshold or requirement
Company age8 years or less since incorporation
Headcount100 employees or fewer
Total assets15 million TND or less
Annual turnover15 million TND or less
CapitalMore than 2/3 held by individuals, venture capital companies, funds (FCPR, seed funds), other investment bodies or foreign startups
Business modelHighly innovative, particularly technologically
ActivityStrong economic growth potential

The first three conditions (age, caps, capital) are checked by the administration. The last two (innovation and growth potential) are assessed by the labelling committee, which must interview the applicant before any favourable opinion.

A useful exception: a company that meets the age, cap and capital conditions, and has raised funds from a venture investor with an agreement with the ministry, is deemed to meet the innovation and growth conditions without going before the committee.

The benefits of the label

BenefitWhat the text provides
Corporate income taxExemption while the label is valid (art. 19 of the law)
Social contributionsEmployer and employee contributions to the statutory scheme paid by the state (art. 19)
Startup grantFor up to 3 full-time founder-shareholders, for 1 year: 1,000 to 5,000 TND net a month for a former employee (based on income over the last 12 months), 1,000 TND net for a non-employee (art. 10 of the law, art. 18 of the decree)
Leave to create a startup1 year, renewable once, for up to 3 founders employed in the public or private sector; guaranteed return to the original job (art. 8 and 9)
Employment programmesA recent graduate who creates a startup keeps their rights to employment programmes for 3 years (art. 11)
PatentsFiling costs covered nationally, and internationally within available resources (art. 12)
InvestorsProfits reinvested in a startup's capital are deductible; capital gains on sale are exempt (art. 13 and 14)
Foreign-currency accountSpecial foreign-currency account managed freely for current and investment operations (art. 17)

The label is valid for at most 8 years from the company's incorporation. The earlier you apply, the longer you benefit.

Watch the grant deadline

This is the point most often missed. Under article 17 of the decree, the grant application must be filed within one month of obtaining the label, and no later than one year after the company's incorporation. A founder can't get it if they've had a Startup grant in the last three years, and must commit to working full time in the startup.

The procedure, step by step

  1. Pre-label (optional): before creating the company, an individual can apply for a pre-label if the project meets the innovation and growth conditions. It's valid for 6 months, giving time to incorporate.
  2. Create the company and register it: see our list of documents to create a SARL in Tunisia.
  3. File the application on the startup portal, with: a register extract and the tax identification card, a copy of the statuts and the shareholder register, a CNSS registration certificate with the list of employees, and the previous year's financial statements.
  4. Complete the form describing the business model: innovation and differentiators, growth potential, team skills, any awards and patents.
  5. Interview before the labelling committee.
  6. Decision within 30 days; no answer within 60 days counts as approval.

For the CNSS registration required in the file, see our article on CNSS registration for a new company.

Obligations once labelled

The label comes with obligations (article 7 of the law):

  • reaching growth targets (headcount, assets, turnover) set by decree;
  • keeping compliant accounts and sending financial statements by 31 March of the following year;
  • reporting any change affecting the label conditions within one month.

If these aren't met, the label can be withdrawn by ministerial decision, after hearing the legal representative.

Is your project eligible?

The Startup Act targets innovative, high-growth projects. A conventional activity (trading, consulting, subcontracting without its own innovation) is unlikely to get the label, even if it's profitable. According to CEPEX and Startup Tunisia, the ecosystem counted more than 1,450 startups in April 2026, of which 1,165 were labelled.

If your project isn't eligible, a standard SARL or SUARL remains the right base, and you can apply for the label later if your model evolves, as long as the company is under 8 years old. The incorporation budget is detailed in our guide to the cost of registering a company in Tunisia.

Frequently asked questions

What is the Startup Act in Tunisia?

It's law no. 2018-20 of 17 April 2018 on startups. It creates a Startup label which gives, while valid, tax, social and financial benefits to innovative companies with strong growth potential.

What are the conditions for the Startup label?

A company 8 years old or less, with at most 100 employees, 15 million TND in total assets and turnover, capital more than two-thirds held by individuals or investors, and a highly innovative business model with strong growth potential.

How much is the Startup grant?

Under decree no. 2018-840, 1,000 to 5,000 TND net a month for a year for a founder who was previously employed, based on their income over the last 12 months, and 1,000 TND net for a non-employee. Up to three founders per startup can receive it.

Do startups pay corporate income tax?

Not while the label is valid: article 19 of the law provides an exemption from corporate income tax, and state payment of employer and employee contributions to the statutory social security scheme.

Can you apply for the label before creating the company?

Yes, through a 6-month pre-label granted to an individual whose project meets the innovation and growth conditions. The company must be incorporated before that period ends.

Is your project aiming for the label? We create the company that will carry it: tell us about your project, or see our pricing.

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