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What is a private company limited by shares?

what is a private company?

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.

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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.

See more

How do I obtain a tax clearance certificate?

What income do I have to pay taxes on?

What donations or gifts are tax-deductible in Cameroon?

What Happens When You Fail to File Monthly Return in Cameroon?

How to Obtain the Taxpayer Identification Number in Cameroon

How Long Should I Keep Records | Cameroon Tax Administration

What do I Need to Open a Business Account with in Cameroon

Want to know more? Visit the website of the Directorate General of Taxation

You can get in touch now!

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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.

 

Openhub Digital - Company Incorporation in Cameroon
Kermann Lobga Derick
Kermann Lobga Derick
Content Writer / Blogger | Small Business Coach | Branding Expert | Entrepreneur| Dad Kermann Lobga is a copywriter, results-oriented digital marketing professional and an entrepreneur with more than 14 years of experience.

1 Comment

  1. […] private limited company is a business entity with private ownership. It is owned by shareholders whose liability to debts […]

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