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You need a business license to run a business in Cameroon

Business License

You need a business license to run a business in Cameroon

In the second part of this series on what the steps to follow after you have registered your business in Cameroon, we’re going to talk about the business license.

Check below for those who you didn’t read Part 1 or want to read it over again:

Part 1: Register your business in Cameroon

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Now your business is legal, and you’re ready to start activities in Cameroon. You may have chosen a limited company or a sole-proprietor business and all you know now is you’re ready to hit the road to begin your business journey in Cameroon.

Before you take the leap into the next phase of doing business in Cameroon after incorporating or registering your business, you have to apply for a business license.

Application for registration

According to the tax legislation in Cameroon, taxpayers have some obligations that they have to follow. Tax authorities as well have certain rules that obliged them to follow specific procedures when dealing with taxpayers.

According to the tax legislation, any legal or natural person planning to carry out or carrying out activities in Cameroon must file an application for registration.

The application should be deposited within fifteen (15) working days following the start of activities with the competent tax authority of the area where the company or individual carry out activities.

Tax identification number

During incorporation or registration of your business, a single identification number is issued online, free of charge by the Directorate General of Taxation.

This comes after the taxpayer has been effectively located by the competent authority. The single identification number is issued alongside an Attestation of Taxpayers’ Registration.

Business license

Every business with a yearly turnover of at least XAF10,000,000 (ten million) is liable to a business license. There are also some business sectors that are obliged to pay for the business license contribution irrespective of their turnover.

Get in touch with us to find out if your business activity requires a business license

Read Also: How to obtain a business license in Cameroon

It is valid for one year for all legal and natural persons carrying out taxable activity within the territory of Cameroon. New businesses maybe exempted from the business license for at least one year. This is at the discretion of the competent tax authority in charge of issuing the business license.

Many new businesses fall in a trap that exemption from business license is exemption from paying income tax. Don’t fall that, please! Every business with a business license, free or paid, is obliged to declare their income taxes for the previous month on or before the 15 of the month.

Existing taxpayers are obliged to obtain a license in the two months that follow the beginning of the fiscal year. Even though it is a local tax, its payment is done at the tax center of the taxpayer and a receipt issued.

Failure to comply or pay the tax shall lead to penalties and sanctions as provided by the legislation.

See penalties and fines for failure to comply or pay the business license tax.

In the next part of this series, I will be sharing with you more about the Unique Identification Number also known as Tax Identification Number. Don’t miss it!.

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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.


Openhub Digital - Company Incorporation in Cameroon
Kermann Lobga Derick
Kermann Lobga Derick
Content Writer / Blogger | Small Business Coach | Branding Expert | Entrepreneur| Dad Kermann Lobga is a copywriter, results-oriented digital marketing professional and an entrepreneur with more than 14 years of experience.


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