Planning an expansion to Cameroon is an exciting time for your company. You have the opportunity to hire talented employees, reach new customers, and potentially offer new products and services. However, it can be difficult to focus on the excitement of an expansion when you’re also worried about Cameroon subsidiary laws, learning a new tax code, and staying compliant.
G-P offers an easier way to expand to Cameroon. With us, companies don’t have to set up a Cameroon subsidiary since we act as the Employer of Record (EOR) and manage the entire employment lifecycle.
How to set up a Cameroon subsidiary
Companies need to consider many factors before setting up a Cameroon subsidiary. For example, do you know where you’d like to incorporate in Cameroon? Different cities and regions often have their own Cameroon subsidiary laws as well as costs and availability. If you’re not familiar with the different areas in Cameroon, we recommend working with a consultant who can show you the best places for your business.
Another factor that impacts the Cameroon subsidiary setup process is the type of entity. Cameroon has different subsidiary structures that you can choose for incorporation, including a limited liability company (LLC), public limited company, branch, or representative office. Your entity not only impacts the Cameroon subsidiary laws you have to follow but also dictates what kind of activities you can perform in the country.
Many companies decide to incorporate as an LLC because it provides the most freedom to operate in Cameroon. The steps to establish an LLC include:
- Registering in the Trade and Personal Property Credit Register (RCCM).
- Acquiring a business license from the taxation department and paying the annual fee.
- Obtaining a tax number from the taxation department.
- Registering employees and company at the National Social Insurance Fund (CNPS) and Labor Office.
- Opening a local bank account.
- Depositing the minimum share capital.
Cameroon subsidiary laws
Cameroon’s subsidiary laws differ based on what entity you choose. If you choose to set up your Cameroon subsidiary as an LLC, you’ll need at least 1 resident director and 1 shareholder of any nationality that can be an individual or a corporate body. You also have to deposit a minimum paid-up share capital to complete the incorporation process.
Although LLCs have the most freedom to operate in Cameroon, they also have more tax requirements. Your LLC needs a statutory auditor to check accounts if you meet one of the following requirements:
- Registered capital over USD 19,000
- Annual turnover over USD 477,000
- More than 50 employees
Benefits of setting up a Cameroon subsidiary
The main benefit of going through the Cameroon subsidiary setup process is getting to work in the country. You’ll also receive additional benefits from incorporating as an LLC. With the limited liability structure, your subsidiary will get to operate with a degree of independence while the parent company is also protected from litigation or fines incurred by the subsidiary.
You can acquire these benefits and more by partnering with G-P. We’ll make sure you don’t have to go through the lengthy Cameroon subsidiary setup process, and you can start being productive from day one. As the Employer of Record, we’ll manage compliance and ensure smooth operations for your company in Cameroon.
Other important considerations
We recommend working with an expert in Cameroon subsidiary laws if you’re incorporating without the help of a global EOR. Failing to meet regulations could result in fines or other delays, so it’s best to work with a consultant, lawyer, or other party with the knowledge to help you stay compliant.
You’ll also need a significant amount of time to set up your Cameroon subsidiary. It can take months to incorporate fully, and you’ll likely need to travel to Cameroon. You should also set aside the costs for travel and make sure your company is financially ready for the costs involved with establishing a subsidiary.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.