You did incorporate your business in Cameroon, but now what? It’s very exciting when you get your first business registered. However, it’s also difficult for those doing it for their first time to know what is needed afterwards.
Many people get confused after registering their business in Cameroon. Some think they just have to start carrying out activities. Some take the next step, but don’t continue.
You may be planning to incorporate your business in Cameroon, and also want to know the steps to be taken after. Here’s what you will need to do after you incorporate your company in Cameroon.
Before we go ahead, have it in mind that you can incorporate your business in Cameroon and don’t start activities immediately. In fact, this is what I advise many who don’t have enough funds to complete the entire process. Those who are still to start activities can also do same.
It’s always good to take a step ahead, rather than wait for the day you have the needed funds to do all.
Many entrepreneurs think once they register their business, they have to start paying taxes, even though they’re not carrying out any activity.
This is not what the legislator says.
You can register your business without carrying out activities and you won’t be penalized for not paying your taxes.
In effect, registering a business is just a step ahead to get your business off to a strong start and doesn’t mean you’re carrying out any activity.
So what if you want to start carrying out activities? That is, taking your business to the next level!
Are you ready to start activity immediately after you incorporate your business in Cameroon? That will be very thoughtful of you. You will need a business license to carry out operations.
If you were already into operations before incorporating your company, then you will also need a business license as soon as you finish the registration procedure.
What happens if you start operations without a business license?
You will be penalized by the tax administration. However, the tax administration gives you 15 days free without any penalty to carry out operations after incorporation.
After 15 days, you company will be penalized. So, once you’re in operations, you’re obliged to obtain a business license.
The business license in Cameroon is valid for one year and must be renewed on or before the 28 of February yearly.
You pay the business license contribution for one year, but it’s renewed every three months.
Your business license is valid only when you’re up-to-date with your taxes.
The business license certificate is a three-in-one document. It also serves as the certificate of non-indebtedness (you’re not owing any tax), tax certificate and a tax status slip.
The taxpayer is obliged to renew this document every three months (four times a year). For it to be renewed, you will have to make sure your taxes are up-to-date.
Newly created businesses are exempted from the business license contribution for at least one year.
What are you waiting for? Incorporate your business with OpenHub Digital and benefit for a one-year business license exemption. If you do it now, then you will benefit from the following freebies:
– a free logo (design only)
– a free website
– a stamp
– 100 business cards
– business letterhead (design only)
By default, every registered company in Cameroon is supposed to have at least one employee. This means when you incorporate your company in Cameroon, you’re oblige to register with the National Social Insurance Fund to obtain an employer identification number.
To apply for an employee identification number in Cameroon, you need the following:
– Certificate of incorporation
– Business license (certificate of non-indebtedness)
– Registered Business Localization plan
– Pre-filled application form from the NSIF office signed and stamped by the manager
You’re obliged to register your employee (temporal or permanent) within eight days following their recruitment. As said earlier, by default, every registered company is oblige to register at least an employee when they start operations.
The company is obliged to declare their salaries and pay their social contributions every month
Employers have to signal every recruitment and cessation of employment.
The corporate tax system in Cameroon like that of many economies in the world is declarative. This means the taxpayer is the one to declare revenue earned monthly.
Once you incorporate your business in Cameroon and start operations, you’re obliged by legislation to pay a monthly advance tax.
You declare and pay the advance tax on or before the 15 of the month for the previous month.
The tax rate depends on the tax regime you registered for (5.5% for simplified tax regime and 2.2% for Actual Earnings tax regime).
Failure to pay on the deadline, you’ll be penalized by the tax authorities.
This advance tax is deducted when the taxpayer files for the Statistical and Tax Returns at the end of the fiscal year.
The fiscal year in Cameroon begins on January 1 and ends on December 31.
Each taxpayer is obliged to file in their Statistical and Tax Returns on or before March 15 yearly for the previous fiscal year. Failure to do so calls for penalties.
For those whose business need a license or permit to operate, they’re obliged to have a complete fiscal file before applying. A complete fiscal file includes:
Business registration certificate
Business license (certificate of non-indebtedness, tax certificate & tax status slip)
A registered localization plan of your business
Taxpayer identification number (Unique Identification Number)
However, this may not hold for all businesses, especially liberal professions like Law Firms, Audit Firms, etc.
With these, before you register the business, you need to show proof that you’re accredited or authorized by the government to carry out such operations.
If you’ve made up your mind after reading this to register a company in Cameroon, then don’t hesitate to get in touch with us now.
If you’ve been facing problems with your taxes, don’t wait for it to go out of hand. Get in touch with us so you can get counsel from experts in the field.
So take action and move your business to the next level.
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This content has been prepared for information purposes only. It is not intended to provide, and should not be relied on for, tax, accounting or legal advice. You need to consult your own tax, accounting or legal advisors before engaging in any transaction.