Tunisia Startup Act: Benefits and Outcomes

TUNISIA STARTUP ACT Benefits and outcomes The Startup Act (Law No. 2018-20 of April 17, 2018) was enacted to regulate the creation and growth of startups in Tunisia through an innovation-driven legal framework. It is built on a set of incentives and support measures designed to accelerate startup development. Financial incentives - A startup founder and at least three founding shareholders may receive a startup grant for one year. - Eligibility is generally tied to full-time engagement in the startup. Tax and social incentives - Eligible startups may benefit from corporate tax exemption. - Employee social security contributions can be covered by the State. The Startup Label The pre-label and Startup Label are awarded by decision of the Minister in charge of the Digital Economy, following the technical committee's opinion. The Startup Label acts as a "passport" that unlocks access to State-backed benefits. Startup Act outcomes in Tunisia According to the Ministry of Communication Technologies, a total of 1,018 startup labels were granted in Tunisia from implementation until April 2024. According to the Global Startup Ecosystem Index 2024, Tunisia ranked 90th globally and 10th in Africa. Economic performance of labelled startups - In 2019, cumulative turnover of labelled startups reached 66 million TND (about USD 23.7M), with 72% generated in the Tunisian market. - In 2021, labelled startups reached 120.16 million TND in turnover, reflecting growth above 60% between 2020 and 2021. International expansion Labelled Tunisian startups are expanding internationally and have opened branches abroad, including in France, Spain, Malta, Turkey, Morocco, Côte d'Ivoire, Egypt, Niger, and Canada.