A comprehensive guide to start a construction company in Cameroon
Have you been looking to be part of the construction industry in Cameroon but don’t know how to go about it?
Don’t worry again – you’re at the right place!
The construction sector is one of the fastest growing industries in Cameroon. The commercial real estate market is hot and the there has been an upward surge due relative ease of obtaining constructions loans by civil servants and private sector workers.
You need a lot, not only financially, to start a construction company in Cameroon. The first thing you have to do is choose a niche in the construction sector, come up with a great business plan and go through state and local registration, staffing and a great marketing strategy that puts your business apart from the others. See 5 digital marketing tools for your startup.
Every entrepreneurship venture has an amount of risk involved and for you to reduce the risk, you need to be well informed about your industry. That’s one of the things we are good at – that’s who can be of help.
Before you start your construction company, there are some basic financial and business tenets you will need to have in order to be successful. This information will be necessary in order to start and run a successful construction company with a solid foundation.
There are many different types of businesses that fall under the umbrella of the construction industry. It would be good for you to have an idea of a specific niche that you have interest in so that you can plan appropriately.
Once you have chosen a niche, you will have to do a proper market research and investigation. You need to evaluate your competitors, determine the needs of the neighborhood(s), town(s) or places you are interested in working. Have knowledge of your ideal customer or the types of projects that will need your services most.
One of the first things to do when you want to start a new business is to come up with a solid business plan. Most successful businesses do have a solid business plan which helps them draw a road-map to achieve their company’s vision. A business plan helps ensure the fundamental ideas behind your business makes sense, and can lead to real success – earning revenue.
It will help you to know exactly when, how and why you are starting your business as well as the steps you have to take to make it happen. Your business plan carries your goals, vision and values on paper. This will be very handy as it charts the course you will have to take for your construction venture. It also helps you know how you will create revenue in your business.
Once you have your business plan, you will need to know why you are actually starting a construction company in Cameroon, how you will run it and what you have to do to make it profitable. If you intend to get outside funding, your business plan will come in handy as lenders or funders will need to go through.
With a solid business plan in hand, you will need to take a look at the rules, registrations and licenses needed to run a construction company in Cameroon. The country as well as the local councils have specific laws put in place for construction companies. This means you will have to make sure you know everything that is required to get going.
The best business entity to easily run a construction company in Cameroon is a limited company. This is because it has very easy options to pay your business taxes. If you will be going in for outside funding, a limited liability company is the best entity you can choose. One great advantage is that it covers your personal assets in your construction company goes into debt or face legal issues.
The are two types of limited companies you can choose from – a private or public limited liability company. You can choose a single-owner limited company or many shareholders in case you have other partners.
You can also choose to be a sole proprietorship or choose a partnership business entity. Except you are a limited partner in the case of a partnership, both sole proprietorship and partnership business structures don’t have personal liability protection. However, they are less expensive to set up when compared to limited companies.
Once you have your company incorporated or your sole proprietorship or partnership registered, you will need to apply for a business license. A business license allows you to start carrying out activities with your construction company in Cameroon.
Want to register a construction company in Cameroon? Fill this form and get a quote within 24 hours.
Here, the licenses and permits are different from the general business license that allows you to run a construction company in Cameroon. You will need some specific licenses or permits depending on the type of construction project you will be engaging in.
The municipality in which you are carrying out a project may require construction companies to get specific permits or licenses in order to carry out activity within their boundaries. Others may require specific licenses to install heavy equipment. You may also be required to acquire specific licenses before bidding for a government or municipal contract.
Get in touch with us if you want to hire a consultant to help you through the process to ensure you have the appropriate documentations.
Insuring your construction company in Cameroon is just as important as registering it legally. We are talking here about a construction company which is inherently a danger-prone business, given that they use heavy machinery, electricity and other equipment that could cause damage.
In this case, and in addition to the above, a construction company in Cameroon is required to have at least one type of insurance. For example, you can go in for a general liability insurance that will protect you against work-site accidents, property damage, injuries, fire and other mishaps that can cost you much money if it happens. Vehicle and heavy machinery insurance are very necessary to ensure they are protected.
If you plan to have your own staff directly, it will be very necessary to get an insurance coverage for them. If you need to carry out an insurance audit or counseling in Cameroon, we can help you get a great insurance consultant who will guide you on what to do.
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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.