How to Start a Sole-Proprietorship in Cameroon – What You Need to Know

Many people in Cameroon don’t know what it takes to start a sole proprietor business, which is one of the most common types of small businesses.

In this guide, I’ll explain everything you need to know to create a sole-proprietorship with a turnover of XAF10 million and above. I’ll also mention what’s needed for those with a turnover of less than XAF10 million.

What is a Sole Proprietor Business?

A sole-proprietorship is different from a limited liability company (LLC). In a sole proprietor business, the business is registered in the owner’s name, not a separate legal entity. This means that if the business owes money, the owner is personally responsible for paying it back. Many people mistakenly believe that their liability is limited to their investment, but that’s not the case here.

Can One Person Own a Limited Liability Company?

Yes, in Cameroon, a single person can own a limited liability company. The required starting capital has been lowered from XAF1,000,000 to XAF100,000, making it easier for small business owners to start an LLC. You can learn more about this in our post on Company Formation in Cameroon.

How to Register a Business in Cameroon

Business registration in Cameroon is managed by the Ministry of Small and Medium-sized Enterprises through One-Stop Shops across the country. These centers work with the Ministry of Finance, Ministry of Justice, and the National Social Insurance Fund to make the process smoother.

There are two ways to register a business:

1. Online Registration: You can now register your business online through the “My Business” portal. This is convenient if you have all the necessary documents and fees ready. However, not all One-Stop Shops accept online payments. You can check this list of centers to find out which ones do.
2. In-Person Registration: If online registration isn’t possible, you can visit a One-Stop Shop with your documents. This method is required if you’re registering at a center that isn’t online yet.

Documents Needed for Sole-Proprietorships with XAF10 Million and Above

To register a sole-proprietorship with a turnover of XAF10 million or more, you’ll need these documents:

• A copy of your national identity card (for Cameroonians)
• A copy of your passport or residence permit (for foreigners)
• A non-conviction certificate (for both nationals and foreigners)
• A sketch showing the location of your business premises
• A copy of your marriage certificate (if needed)
• A tenancy agreement (if renting) or land tax receipt (if you own the premises)

What You’ll Receive After Registration

Once your business is registered, you will receive the following documents:

• Business Registration Certificate
• Taxpayer’s card
• Business License (Certificat de conformité Fiscal)

For a detailed guide on taxes in Cameroon, you can download the General Tax Code 2018 and other official documents from our website.

Need Help?

Starting a business in Cameroon can be confusing, but we’re here to help. At OpenHub Consulting, we offer services like company formation, small business consulting, and bookkeeping. Contact us today to find out how we can assist you. Whether you need help with the registration process or ongoing business support, we’re ready to help. Get in touch now for a free quote!

Start your journey with us today! Visit OpenHubConsulting.com for more details.

Read Also: Starting a Business in Cameroon – What It Takes

If you plan to create a limited liability company, then this will be of help to you. Don’t hesitate to get in touch with us if you need possible help or if you want to benefit from our services. Leave a comment in the comment box below for any contribution you think you may want to share with us.