5 things to know before you start your business in Cameroon
Are you planning to start your business in Cameroon? Do you have a new business and don’t know how to go about it when it comes to taxes?
Whether you’re a small business or an individual, before you start your business in Cameroon, you need to know the right steps to take.
If we helped you in registering your business, you must have already been informed about what I will share below. However, it’s not bad for you to read in order to better understand.
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As for those who have new businesses or plan to start one, this will be of great help to you. Below are 5 things you need to know when you want to start your business in Cameroon:
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1. Register your business
This is the first step you have to take when you make a decision to start a business in Cameroon. Your business needs to be legal and this to happen, you have to register it with the competent authorities.
You have three most common business structures you can choose from in Cameroon: sole-proprietorship, private and public limited liability companies.
I have given you more details about this in a previous post, register your business in Cameroon. It will help you if you want to start a business in Cameroon.
You can also checkout step-by-step guide to starting a company in Cameroon. If you need any assistance, know we’re just an email or call away.
2. Taxpayer identification number
The Unique Identification Number is a must have if you want to start your business in Cameroon. This number is used by the tax authorities to identify taxpayers and administer tax laws.
There are certain transactions you can’t carry out in Cameroon unless you have a Unique Identification Number. Checkout you need a unique identification number to start your business in Cameroon.
You also need a Unique Identification Number to apply for a business license which allows you to carry out your business activities in Cameroon after registration.
3. Apply for business license
Many entrepreneurs have believe after registering their business, they need to start running their business. That’s not the case in Cameroon.
Any natural or legal person carrying out a business activity in Cameroon after registration, needs to obtain a business license. It should be noted that every business with a turnover of 10,000,000 francs CFA and above is liable to a business license.
There are some sectors like the logging, liberal professionals and other professional officers who are obliged to pay the business license tax irrespective of their turnover.
Once you business is legal and everything set, you need to apply for a business license in order to start carrying out activities.
Read Also: How to obtain a business license in Cameroon
This application is deposited at the competent tax authority of the area within 15 (fifteen) working days following the start of activities.
I covered this section previously in a post you need a business license to carry out business activities in Cameroon.
Get in touch with us to find out if your business activity requires a business license
4. The obligation to file your tax returns
This point is very important because there is a great confusion on exemption from business license tax and income tax. Even those who used our business registration services get confused even though we explain.
We offer free advisory services to all who use our company or business registration service.
New businesses in Cameroon are exempted from business license contribution for at least one year. However, this doesn’t mean they’re exempted from paying their income tax.
All businesses under the simplified and actual earning tax system are obliged to spontaneously declare and pay a down payment of their income tax. This is done not later the 15th of the month for the previous month.
They’re also obliged to file your statistics and tax returns for the year and pay the balance of the tax no later than March 15th yearly.
If you have planned or started your business in Cameroon, you need to know that corporate tax is levied on all income or profits made by your business.
More on this in a previous post it’s an obligation to file statistical and tax returns in Cameroon.
If you have started or plan to start your business in Cameroon, you can sign-up for our #KnowYourTax newsletter & tax payment reminder. Send “Tax payment Reminder” using any of the medium on our contact page.
5. Modifications affecting your business
This is for you, if you have started your business in Cameroon and want to do some modifications.
Before you think of doing any modification, know that you have to inform the administration.
There are many reasons why businesses may want to carry out significant modifications. This includes: change of manager, cession, cessation, business name modification, change of business location or business activity modification.
If any of the above modification is carried out, you will have to declare with the competent authority within 15 working days from the day the modification takes place.
See how to treat modifications affecting your business in Cameroon for more details on this.
This post will be updated from time-to-time, so ensure you check on this frequently.
Don’t hesitate to leave a reply in the comment section below or get in touch with us anytime.
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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.