GUIDES SETTING UP A FOREIGN-OWNED COMPANY IN CAMEROON IN 2023 – PROCEDURE AND REQUIREMENTS
Starting a business or company in Cameroonian by law, including the smooth and easy setup of a foreign-owned company, the business owner must comply with corporate laws of the new jurisdiction to guarantee a hitch-free start of the business in Cameroon. It is therefore important for an individual or business entity to ask for legal advice from the best commercial lawyers in Cameroon; this would equally help in securing all statutory business permits and approvals required for the business operation & set up.
The compliance of the business owner with Cameroon regulations and corporate due diligence will provide practical solutions that will serve the immediate and long-term best interests of the foreign investors carried out by the retained business lawyer in Cameroon.
What is a Limited Liability Company in Cameroon?
The ideal enterprise for this type of intended business investment should be a limited liability company simply defined in law, also by the British oxford dictionary as a ‘‘Private company whose owners are legally responsible for its debts only to the extent of the amount of the capital they invested’’ or as defined by Small Business Encyclopedia in the international business magazine entrepreneur.com, Ask an Expert Session with Jason Feifer as ‘’ A form of business organization with liability shield advantages of a corporation and the flexibility and tax pass-through advantages of Partnership’’. Equally established in the case of Salomon v A Salomon & Co Ltd 1897 AC 22 as a Company is a separate legal personality from the owners. GUIDES SETTING UP A FOREIGN-OWNED COMPANY IN CAMEROON IN 2023 – PROCEDURE AND REQUIREMENTS
Before going into the procedures, we must note, that there are several laws of Cameroon stipulating the rules and regulations of business in Cameroon and other laws in respect of a fully owned foreign company with foreign shareholders.
The following steps are the best ways to set up a new foreign-owned business in Cameroon:
Procedure 1
The first law requiring the intending foreign business owner or organization must know is to contract a knowledgeable business lawyer to incorporate a Limited Liability Company which is simply defined as a (Registered Company).
Required Information and Documents for a New Company Registration
The proposed name of the company is to be reserved at the Commission.
Share Capital of the Company.
Division of the Share Capital in percentage ratio.
Name of the Directors, a minimum of 2 and maximum of 50 for a Private company including shareholding.
Cameroon office address ( pending incorporation client can elect office at the lawyers’ office
Director’s & shareholder’s residential addresses overseas.
Data page of shareholders and Directors’ international passports or Government issued means of Identification or a valid Driver’s Licence.
The signing of all the incorporation documents by the directors and shareholders.
Note: Electronic or digital signatures are not accepted by the company registry.
Upon receipt of all the signed documents and other attached documents by the Solicitor, the application will be filed accordingly and the company registered certificate of incorporation could be ready for pick up within 14 days except if there are queries on the Application.
Procedure 2
At this point, it will be very important for the foreign-owned company to either secure a physical office or at least a contact office address in Cameroon because it will be needed for Business Permit
Required Government Approvals and Other Due Diligence after Incorporation
Tax Registration and Opening of Bank Account.
It is compulsory to obtain Tax Identification Number (TIN) from the Ministry of taxation,
Bank Account Opening.
With the TIN ready, the company can open a corporate account for Capital Importation for the kick-off of the business; they should also make sure they comply with the requirements of laws as regards the importation of capital or funds into Cameroon as stipulated by the Central Bank Circulars and Regulations.
The next stage:
Residence Permit
This is the last stage of the processes required for setting up a business in Cameroon, Directors and Expatriates Employees including their family members must secure a Resident Permit to live and work in Cameroon. The application will be processed through the solicitor to the regional commissioner for immigration of any of the 10 regions in Cameroon. Take note, this Resident Permit is valid for 2 years and renewable after
We must clarify that in some categories of business, the law requires peculiar approvals and licenses for a foreign or overseas-owned company to operate in some important sectors of the Cameroon Economy, good examples are the oil and gas sector, communication, pharmaceuticals, banking & insurance, the capital market which will be approved by other special Government regulated agencies.
Therefore, if you need to know more about easy and best ways to set up a foreign-owned company in Cameroon, we always strive to work with business owners to determine the best choice of company to fit into their business goals and needs in Cameroon.
We encourage prospective foreign business owners to invest in the country because of its good laws, and great returns on investment in Africa as the economic powerhouse. Equally, as a high-quality commercial law firm of distinction in Cameroon, we assure you of hassle-free legal compliance of the business with Cameroon regulations and due diligence.
We serve as the best lawyers in Cameroon for consultation in commercial law; we are more than ready to assist and help to make all the business regulation requirements seamless in Cameroon.
Article by CHUO ANGABUA JUNIOR
‘’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’’
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