Company Registration In Cameroon
STEPS TO REGISTER A COMPANY IN CAMEROON- 2023
Getting into entrepreneurship is not always easy, Whether, in Cameroon or any country, one is often confronted with complex administrative and legal formalities.
To overcome them, the Prime Time Law offices propose to guide you in five simple and reliable steps for the creation, business registration in Cameroon, and incorporation of your company in Cameroon.
1- The choice of the ‘legal form’ of the company
2- The Business Creation Formality
3- The documents to be provided and the cost of creating a company
4- The documents issued upon creation
5 – Documents certifying the creation of a company
If you want to create /register/incorporate your business, hire us now. The choice of the ‘legal form’ of your company is decisive.
Step 1- The choice of the ‘legal form’ of the company
When setting up a business, it is important to determine its legal form. Depending on your expectations, you have the option of choosing between a sole proprietorship commonly referred to as an Enterprise (Ets), or a commercial company.
Enterprise has no legal personality. It can only be created by a natural person and offers the advantage to the entrepreneur of remaining the sole master on board. The main disadvantage of this type of business is the uniqueness of the heritage between the entity and its promoter.
Some entrepreneurs/promoters prefer creating an enterprise, while others choose companies (LTD Or PLC).
Indeed, under OHADA law they are 2 major types of commercial companies.
Any person wishing to know How to register a company in Cameroon must understand that there are two types of companies, namely, a private limited liability company and a public limited liability company.
A Private limited liability company is a business entity whose owners have limited liability with private ownership as shares are prohibited from being publicly traded. In Cameroon, the initials LTD, and SARL, are added to the names to differentiate them from other businesses.
A Public limited liability company is a business entity where shares are offered to the general public. Shareholders also have limited liability. In Cameroon, the initials PLC, LLC, SA, are added to the name to distinguish a public limited company from other businesses.
The commercial company induces more formal management. It can be created by a single person or by several natural and/or legal persons. It offers the advantage of seeing the assets of the company dissociated from those of the promoters.
The choice of a business form also depends on the tax incidence. In other words, some options are more tax-efficient than others. Our Experts are at your disposal for the related details.
The choice of the form of the company is clearer now, let’s see how to easily and quickly create a company in Cameroon.
Step 2- The Business Creation Formality
Before, starting a business was reserved for wealthy entrepreneurs and the procedures to be completed were a real obstacle course.
Since Law No. 2016/014 of December 14, 2016, and its implementing decree No. 2017/0877/PM of February 28, 2017, there is no longer any need to go to the notary to create a company.
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This is specifically about the creation of sole proprietorships and limited liability companies whose share capital varies from 100,000 FCFA to 999,999 FCFA. For the other company type (LTD, PLC +1 million capital, etc.), the creation is done before a notary and a lawyer.
Wondering what parts it takes to simply start a business in Cameroon? Don’t worry, we’ll do better by also telling you what to expect in terms of cost.
Step 3-
The documents to provide and the cost of creating a business
a- The documents required to create a business/ company
Depending on the choice of the type of business, the entrepreneur must provide certain documents for the creation of his entity.
For individual companies,
• 01 photocopy of the National Identity Card (CNI) or passport (if foreigner) of the promoter,
• 01 extracts of criminal record of the latter
• 01 location map is required.
For companies, you will be asked:
• Five copies of the articles of association drawn up by a lawyer.
• Four copies must be stamped at the time of filing.
• A photocopy of the National identity or (passport copy if foreigner) of the intending sole partner or partners,
• An extract from the criminal record of the manager,
• A location plan
It is important to emphasize that proof of release of the share capital, Provided that it is less than one million.
Foreigners, i.e. entrepreneurs who do not have Cameroonian nationality, can also create their business/company in Cameroon. To do this, you must produce the following documents:
– Copy of the passport,
– Copy of the residence or residence Permit
– extract from the criminal record from your country of origin,
– certified copy of the marriage certificate or certificate of celibacy,
b- The cost of creating the company in Cameroon
To create a company in Cameroon you will in principle have to hire a professional that’s to say a lawyer and a notary
creating a company in Cameroon will cost from 1000USD to 5000USD depending on the type of company chosen.
Let us know in case you will need our services for setting up a business in Cameroon.
Step 4
The documents issued at the end of the business creation procedure
At the end of the procedures carried out, your lawyer or legal representative will receive various documents. That will attest to the existence of the business.
For the sole proprietorship:
- The first document is proof of registration in the Trade and Credit Register (RCCM). This document is issued by the Chief Registrar of the Court of First Instance of the place where the company will have its headquarters.
- The second document was the taxpayer card which was valid for 10 years. But it has been replaced by the tax registration certificate,
For the limited liability company:
- In addition to the aforementioned documents, 2 original copies of the articles of association duly authenticated, notarised, and stamp duty.
This authentication is done by signing at the bottom of the statutes established under private signature.
However, the creation of a company is not limited only to the above-listed tenets; there are still other administrative formalities to accomplish. Step 5- Documents certifying the creation of a company
A company is regularly considered as created when it can justify its existence through the following elements:
Registration in the Trade and Personal Property Credit
Register
Registration as a taxpayer with the tax
authorities –
Affiliation with the National Social Welfare
Certificate of tax clearance
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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