Do you want to start a barbershop business in Cameroon? What qualification do you need? Are there any regulations to follow? Do you need any authorization to start a barbershop? What is the best business structure for a barbershop in Cameroon?
The above are some questions you will ask if you want to start a barbing salon in Cameroon. I will be sharing with you the answers to the questions below. To start, let’s first understand what we call a barbershop.
A barbershop is a place men and boys go to cut, groom, style and shave their hair or beard. In Cameroon, you can find them dotted around neighborhoods, road sides and business areas. There’s a strong demand for the services offered by barbing salons.
However, if you want to succeed in it, you need to have a strong entrepreneurial plan. Before coming up with this plan, you need to consider whether to start from scratch, buy an existing shop or buy a franchise. Talking about franchising, I am still to find a franchised barbershop in Cameroon.
Once you have chosen how you want to start, you can then go ahead and develop a business plan – that’s after carrying out the necessary research. A good business plan needs to have a market research and analysis, business model, financial projections and information about the key staff or managers.
What qualification do you need to create a barbershop?
You don’t need a specific academic qualification to start a hairdressing salon for men in Cameroon. In some countries, there are professional exams and certifications for you to practice the profession of a barber. You may also need to show justification that you have had practical experience for between 1-3 years.
The latter is what is common in Cameroon. There are also institutions that offer courses in hairdressing. Barbers and hairdressers require certain qualities that must be respected. The barber will need to be technically good and good in client management and customer service.
Is there a regulation to start a barbershop business in Cameroon?
There are no specific regulations put in place in order to start a barbing salon in Cameroon. As said above, you are only required to have at least 1-3 year apprenticeship before you can become a barber.
Just like any other business, the ministry of commerce obliges owners of a barbing salon to post the prices inside or outside their barbershops. Only current prices are supposed to be posted.
They are obliged to have a trashcan at their business premises. In some council areas, they are levied the hygiene and sanitation tax which is paid quarterly.
If the barbershop plays music or has a television inside, they may also be charged to contribute to the music author’s right association. Make sure you read this before you launch a business in Cameroon.
What type of legal entity do barbershops fall in Cameroon?
Just like every other business, the owner of a barbing salon is supposed to pay taxes to the state. They need to have a legal status which determines their tax regime and the taxes they have to pay.
Various business entities for a barbershop in Cameroon
Micro-enterprise under the flat rate tax system
Most of the barbershops in Cameroon fall under this tax system. They’re small businesses in the name of their owners and fall under the discharge tax system. Businesses under the discharge tax system have a yearly turnover of less than ten million francs CFA. They can be classified under the below categories:
- Category A: Itinerant barbers – those that have no fixed place and move from one place to the other to carry out their activity.
- Category B: Owners of hairdressing salons that have 1 to 3 employees
- Category C: Owners of hairdressing salons that have 3 to five employees
- Category D: Operators of a hairdressing salon with more than five employees
Sole proprietor business
A sole proprietorship is an enterprise owned and run by one person. In such a business entity, there is no distinction whatsoever between the owner and the business. The owner has unlimited liability – they are entirely liable for the debts of the business.
Sole proprietorship with turnover of 10 million and less than 50 million fall under the simplified tax system. Those above 50 million fall under the actual earnings tax system.
Limited liability company
A limited liability company is a business entity where the owners are legally responsible only to the amount they have invested in the business. In Cameroon, you have a public and private limited liability company. You can get more idea on How to incorporating your company in Cameroon.
Just like the sole proprietor business, they fall under the simplified and actual earnings tax system. Check out what you will need to register a limited liability company in Cameroon.