Also called a limited liability company or a limited company, it is regarded as a separate legal person. A private company limited by shares is incorporated in the Trade and Personal Property Credit Register in case of Cameroon.
The assets, liabilities, profit, losses are considered its own. It is owned by its members who are called shareholders and run by a manager who can be one of the owners or an outsider appointed by the shareholders. Do you have a private company limited by shares and call yourself a CEO? That’s wrong. Checkout the corporate titles you have to use for each business form in Cameroon.
Since it is considered a legal person, it has a life of its own and can continue even when a member or manager dies or resigns, the business is sold or if outside investors come in and buy shares. The life span of a private company limited by shares in Cameroon is 99 years renewable.
Limited company are created for various reasons. It can be
- to own property
- obtain external finance
- for taxation purposes
- it’s status and
- the protection from risk by its members
What happens after incorporation?
After a private company limited by shares or limited liability company is incorporated, a registration certificate and a company registration number is issued. This does not mean the company can immediately start activities. The company needs to apply for a business license in order to carry out operations or own a bank account.
As said above, the assets, liabilities, profits and losses belong to the company. If the company fails, the private assets of the managers and shareholders are protected. This is why it is called a limited liability company.
Many people in Cameroon still take a sole proprietorship for a limited company in Cameroon. See the difference between a limited company and sole proprietor business. You can also find here the 9 benefits of a limited liability company.
Do you want to incorporate a private company limited by shares in Cameroon?
Checkout this previous post I wrote for all what is needed to incorporate a company in Cameroon. Don’t hesitate to get in touch with us if you want assistance in registering your company in Cameroon.
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Want to know more? Visit the website of the Directorate General of Taxation
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