Whether you’ve registered or you’re still to register your business in Cameroon, know you have taken a great stride in the right direction.
If you read a previous post I shared with you, 9 reason to start a business in Cameroon, you must be aware of all the many advantages that awaits you if you start a business.
If you want to register your business in Cameroon or you’ve already done and not sure of what else is involved, then it will be necessary for you to follow this series that I will run throughout the entire week.
Our first topic in this series is register your business in Cameroon as you can see below.
The first step you need to take after a decision to start your business in Cameroon is to make it legal. That is, you need to register your business for it to become legal.
People start businesses for different reasons – to you, this may just be the next level in your journey.
In order to register a business, you need to know the legal structure of your business. The three most common business structures you can find in Cameroon are sole-proprietorship, private and public limited liability companies.
For some, they will want to start as a one-person business, sole trader business or what is commonly called sole proprietorship. With this, there is no separation between you and your business. This means you are fully liable as an individual for the debts or any legal action against the business.
As for you who may want to separate your business from yourself, you have to choose a private or public limited company. The main difference with these two is that the shares of the former is privately owned, meanwhile that of the latter can be sold in public (stock market).
In Cameroon, it is possible for individuals to own 100% share in both a private or public limited company. This means, you can be the sole owner of a private or public limited company.
What is meant by “separate your business from yourself”? You saw the case of the sole-proprietor business above, I said there is no separation between the business and the owner. This means the liabilities of a sole proprietor is unlimited.
In the case of a limited company (private or public), there is legal separation between the business and the owners of the business (shareholders). The business is regarded as a legal entity independent its owners.
The owners in a limited company or shareholders in a company have limited liability. This means their liability is limited to the amount of money they have put in the business.
If the company is in debts, the private assets of the owners are not touched to pay for the debts. They’re liable only to the amount they’ve put in the business.
Before you go ahead, you need to ensure you have a clear idea of why you want to start your business in Cameroon. Make sure you have a business idea in hand or try to find out from experts the best sectors to invest in Cameroon.
If all these have been well thought of, then it’s time for you to choose the best structure for your business.
You can check out a step-by-step guide to starting a company in Cameroon. If you need help incorporating a company in Cameroon, we’re just an email or call away.
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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.