SETTING UP A COMMERCIAL COMPANY IN CAMEROON AND PRIVILEGES OF ESTABLISHMENT.
To set up a company in Cameroon, no prior administrative authorization is required except for some specific activities.
From a legal perspective, commercial companies are governed by the OHADA(Organization for the Harmonization of Business Law in Africa- occasionally referred to in English as OHBLA) Uniform act relating to Commercial companies and Economic interest groups. As per this uniform act herein mentioned, the rules governing both limited liability and unlimited liability companies are outlined in a clear and distinct manner to serve the purpose of establishing a healthy and transparent business atmosphere adapted to that of the globe at large and to Africa in particular. Nevertheless, in Cameroon, where the law recognizes private enterprises, different types of business companies flourish, the most common of which are the Public limited company (S.A) and the Private limited company (S.A.R.L).
It should however be noted that, practice is not always clear, direct and distinct as theory always enunciates, usually complicated by the intricacies of the terrain. Out of our experience in the corporate world, we have tried to simplify the comprehension of such difficulties by putting into words the following formalities;
– First and foremost, the prospective business man’s criminal record should be ascertained, through the procurement of a certificate of non-conviction. As for foreign investors, they should hold valid entry and residential documents;
– After being clear on the type of company to be created, one should, along side their legal counsel deposit with a Notary public or a legitimate Bank the requisite minimum legal authorized capital permitting the incorporation of such;
– Establish the Articles of Association with the legal counsel and notary Public, then submit an application for registration with the Trade and Personal property credit Register through the Registry of the Court of First Instance in the area where the company will be established and have its head quarters, which will be followed by the issuance of a certificate of incorporation and published in the official legal journal;
– After obtaining the certificate of incorporation, an application for the exoneration of the business tax for a period of two years should be obtained, within which the business man will keep declaring its activities on or before the 15th of each month, to enable the State to estimate the activity in a bid to know under what Tax regime it should be placed;
– After the exoneration, an obtainment of a Tax payer’s card is imperative;
– Declare the employed staff with the competent services of the National Social Insurance Fund (NSIF-CNPS).
Practice has showed us that, the period of time which is required for the above to be accomplished, if all the means are made available and everything being equal, is fifteen days. More than ever before, the Cameroon government is bent on making the investment environment more conducive and enabling for both national and foreign investors who want to venture into any business area permitted by the Law. Coupled with this, we have also adapted our services to the difficulties ever found on the field of practice, So we invite you to come invest in Cameroon, through the Quality and Diligent services of MOJUFISC, You will never regret.
FOR THE FIRM
MOLIKI NITUA TABOT
LLM-BUSINESS LAW- University of Douala,
LLB (Hons) LAWS AND POLITICAL SCIENCE-University of Douala,
DIPLOMA IN CONFLICT ANALYSES- United States’ Institute of Peace.