DOING BUSINESS IN CAMEROON

DOING BUSINESS IN CAMEROON

Since 2018, Prime Time Law offices have assisted our clients with business registration in Cameroon

Our services include

1. Cameroon business registration

1. ii) government license registration

1. iii) corporate bank account opening services in Cameroon and abroad

1. iv) employee recruitment

1. v) visa strategies and

1. vi) office rental solutions in Cameroon.

Summary	Enterprise	LTD	PLC	Representative office	Branch office
Also Known as	Business Name or Sole Proprietorship	Private Limited liability company	Public Limited Liability Company	Liaison office	Branch office
Best use of company?	All products and services	All products and services	All products and services	Manuf/ export trading	Marketing/ research
How soon to invoice Clients?	24 hours	24 hours	24 hours	24 hours	24 hours
How soon can you hire staff?	1 week	1 week	1 week	1 week	1 week
How long to supply corporate bank a/c?	4 weeks	4 weeks	4 weeks	4 weeks	4 weeks
How long does to supply co. reg/tax numbers?	7 days	7 Days	7 days	7days	7 days
The corporate tax rate on annual net profits?	33%	33%	33%	NA	NA
Limited liability entity?	YES	YES	YES	NA	NA
Are government grants available?	YES	YES	YES	NO	YES
Govt approval required for foreign owners?	NO	NO	NO	NO	NO
Res. Director/partner/ legal rep. required?	NO	NO	NO	YES	YES
Minimum paid-up share capital?	FLEXIBLE	FLEXIBLE	FLEXIBLE	FLEXIBLE	FLEXIBLE
Can bid for Government contracts?	YES	YES	YES	NO	YES
Corporate bank account location?	YES	YES	YES	YES	YES
Can secure trade finance?	YES	YES	YES	NO	YES
Is VAT payable on sales to local customers?	19.25%	19.25%	NA	NA	19.25%
Average total business set-up	On Request	On Request	On Request	On Request	On Request
Average total engagement period?	1 month	1 month	1 month	1 month	1 month

CAMEROON COMPANY REGISTRATION SUMMARY

Advantages and Disadvantages

- Advantages of Cameroon company registration

✓ Our Clients can register a company in Cameroon with only i) one shareholder ii) one director and iii) a minimum paid-up capital of US$1,700 (XAF1 million), paid before the incorporation of the Cameroon entity. Our clients also do not have to

travel to complete Cameroon company formation and corporate bank account opening;

✓ English and French are both national languages of Cameroon, reducing company formation costs in this country. Our

French and English-speaking Clients will also be able to communicate more easily with their local partners and customers in Cameroon;

✓ Cameroon is an attractive location for businesses in the oil and gas industry. The country is indeed the 6th largest producer of petroleum in the petroleum-rich region of Sub-Saharan Africa. Oil reserves are estimated at around 400 million barrels with natural gas reserves also substantial;

✓ Cameroon is a rapidly growing market, with GDP growth in 2014 of 5.6% (the last figure available) according to the World Bank. The country’s population is 26 million and the country is relatively politically stable compared to its neighbour,

making it safer to invest in Cameroon than in the rest of the region;

✓ Cameroon has an adult literacy rate of 85% (as of 2015) and a minimum wage of US$64 per month. As a result, investors can easily hire a skilled labour force at affordable rates for conducting their business in Cameroon.

✓ Foreign companies entering the Cameroon market to do business, will enjoy a 0% corporate tax rate on annual net profits for the first two years of business. It is also possible to request an extension to this benefit;

- Disadvantages of Cameroon company registration

Corporate income tax is high in Cameroon, with a standard rate of 33% and a minimum alternative tax of up to 5.5% of

the turnover of the company. Companies remitting interest and dividends overseas are also subject to a withholding tax rate of 16.5% unless reduced by a double taxation avoidance treaty;

✕ Cameroon has signed only eight double taxation avoidance treaties, namely with i) Canada ii) the Central African Republic

iii) Chad iv) Central African rep. v) Equatorial Guinea vi) France vii) Gabon.

✕ Cameroon has been poorly ranked at 153rd position (out of 180 countries) in the Corruption Perception Index 2017. Also, the Cameroonian government is infamous for its widespread bribery, nepotism, and corruption across all sectors of its economy.

Article by CHUO ANGABUA JUNIOR

PRIME-TIME LAW OFFICES

‘’The content of this article is intended to provide a general guide to the subject matter. We insist specialist advice be sought depending on your specific circumstance’’