Are you considering doing some modifications in your business? Before you do that, know that there are certain changes which when done, the administration needs to be informed.
To continue our series, we will see the some of the changes made in your business that require you to notify the competent authority.
Below are the previous parts of the series in case this is the first time you’re seeing it or you may want to read again.
Part 1: Register your business in Cameroon
Part 2: You need a business license to run a business in Cameroon
Part 3: You need a business license to run a business in Cameroon
There are some significant modifications in your business which you must notify or declare with the competent authority. Below are some:
- Change of manager – this is when a manager, general manager or highest executive of the business has been removed or a new one appointed. According to legislation, the manager, general manager or CEO of a company can be dismissed or replaced.
- Business transfer– a cession is a legal transfer of part or all of a business to another person, firm or company. This means you are giving up the rights and assets of your business to another. Simply put, changing the ownership of the company. Some of you may prefer to buy an existing company as an alternative way to start a business in Cameroon. This method maybe advantageous when compared to starting from scratch. If you want to buy or invest in an existing business in Cameroon, we’re an email or call away. You will have to declare with the competent authorities once you buy out a business, or you transfer your business to new owners.
- Cessation – a business, be it legal or natural person can cease to carry out activities for various reasons. Cessation of a business can be the first steps of closing it down through dissolution. When a business ceases to trade, it means all its activities have to stop, employees stop work and its assets sold. If the business has debts, the liability of the debt will depend on the business structure. In the case of a sole-proprietor business, the owner is liable for the debts of the business. If it’s a limited company, the liability of the shareholders is limited to the amount they have invested in the business.
- Modification of business name – you can decide to change the business name of your company anytime. This maybe because the name chosen by the company no longer reflects your brand. The process of changing a business name varies depending on the structure of your business. Changing the name of your business may have some legal implications, so it’s necessary for you to talk with a licensed legal practitioner before taking action. Need one? Get in touch with us now!
- Modification of business activity – it’s possible for you to modify the core business activity or add new ones in Cameroon. Changing or adding the business activity usually happens because of strategic changes or expansion. The business may want to undertake new activities. For this to happen, they will have to update their business activity in the Articles of Association.
- Change of business location – this is when you move your business to a new location. It usually happens when you’re looking for something more affordable, larger or a better location. There are even situations where moving your business will require that you change your tax center. Do you want to change your business location? Get in touch with us now!
If any of the above happens, you need to declare with the competent authorities of the modification 15 (fifteen) working days from the date it was modified.
For those of you who have a company, any modification you do in the Articles of Association needs to be declared as prescribed by the law.
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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.