Starting a business in Cameroon

Cameroon is rich in natural resources throughout its territory. Discover, in this article, how to create a company in this African country.

Promising sectors

The government of Cameroon tends to encourage investment in the following sectors: transportation, agribusiness, tourism and rural development. Programs have been developed to simplify procedures, make it easier for entrepreneurs to do business, and ensure that the economy is protected from scourges such as corruption.

Investing in Cameroon: for or against

Cameroon has free zones where companies can be established whose activity is exclusively for export. These zones are granted numerous advantages such as the exemption of all permits, the possibility to open bank accounts in foreign currency, the right to transfer 75% of profits made abroad, the exemption of taxes and duties for 10 years from the beginning of the activity, an overall tax rate of 15% on profits from the 11th year. In addition, Cameroon is known for its cheap labor and abundant natural resources. However, to start a business, you will have to follow a more or less complex and costly procedure.

The right to start a business in Cameroon

Access to the profession of business in Cameroon is free and, in the case of foreigners, they can own 100% of a business.

Creating a sole proprietorship in Cameroon

A sole proprietorship is commonly referred to as an establishment in Cameroon. Here are the steps to follow in the creation of this type of business.

Registration in the commercial register

This procedure is carried out at the Clerk’s Office of the Commercial Court of your locality and is completed immediately. To complete it, you will need to provide a copy of your identity card or birth certificate, a copy of your marriage certificate (for women), proof of address, an extract from your criminal record, your lease contract and the application form to the Clerk’s Office of the Commercial Court with a stamp. The cost of this is 64,000 CFA plus the cost of the stamps.

Tax registration

You will obtain your Taxpayer Card from the Cameroonian Tax Center. To do so, you will need to send an application to the head of the Tax Center, a copy of your identity card, your registration certificate obtained from the Trade Register, a certificate and a map of the location of your business and the receipt of payment of the fees, which amount to 1,500 CFA.

CNPS, Labor Inspection and other authorizations

When the entrepreneur hires his first employee, he must go to the CNPS center in the company’s location and fill out a registration form on the spot. At the same time, he must provide his certificate obtained from the Trade Register, his company’s patent, his taxpayer’s card, a map showing the location of his company, the company’s permanent and temporary organization chart and the lease contract if the premises are rented. This procedure does not incur any costs.

In addition, the sign must be declared to the local labor inspectorate: a letter of declaration is all that is needed to complete this procedure.

Create a SARL or a SA in Cameroon

Creating a Limited Liability Company (SARL) or a Public Limited Company (SA) is possible with a minimum capital of 1 million CFA or 10 million CFA divided into shares, respectively. The procedure is almost identical to that used to create a sole proprietorship. Only the procedure for registering with the Trade Register is modified. Indeed, for this one, the entrepreneur (or the notary, if he wishes to delegate the task) will have to submit a registration application form with the following information

• the name of the company
• the acronym or the name of the sign
• the activity(ies) carried out
• the civil status of the legal entity
• the amount of the share capital, indicating also the amount of the cash contributions and the evaluation of the contributions in kind
• the address of the registered office (and of the principal place of business and other branches, if any)
• the duration of the company or of the presence of the legal entity within it, as agreed by its articles of association or the founding text of the company
• the identity and personal details of the partners who are indefinitely and personally liable for the company’s debts, as well as their date and place of birth, their nationality, the date and place of their marriage, if any, and all the information relating to this civil union (matrimonial regime, free disposal of the spouses’ property, separation of property, etc.)
• the identity, contact information and date and place of birth of the company’s executives and partners
• the identity, contact details, date and place of birth of the account commissioners when they are designated by the Uniform Act relating to the law on commercial companies and economic interest groups
• any other measure taken by a particular legal provision.

Other documents will be required to complete the file for the Commercial Registry, namely

• a certified copy of the articles of association or of the founding act
• the declaration of regularity and conformity, or the notarial act of subscription and bank transfer
• a certified list of the managers, directors, officers or partners declared to be personally liable or having the power to bind the company or the legal entity for an indefinite period
• a declaration on honour signed by the applicant and certifying that he/she is not subject to any prohibition provided for by law. As of the date of registration by an extract from the criminal record or a document similar to it, the declaration on honor is completed within 75 days.

Please note that depending on the activity of the establishment, other authorizations may be required. For more information, please contact the relevant authorities (ministries, Trade Registry, Labor Inspection, etc.).

More informations : https://employerofrecord-africa.com/cameroon-employer-of-record-services/.