Doing business

Cameroon

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private Limited Company CFA 1 million divided into shares	No minimum Liability is limited to the amount contributed.
Public Limited Company CFA 10 million divided into shares	No minimum Liability is limited to the amount contributed.
Partnership No minimum	No minimum Unlimited liability
Limited Partnership No minimum	No minimum Unlimited liability

Business setup procedures

Setting up a company	Cameroon	Sub-Saharan Africa
Procedures (number)	6.0	8.9
Time (days)	19.0	45.2

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Cameroon.
Trade Register
The competent organization: The Registration and Stamp Duty Office of the Department of Taxation is the competent organization.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	270	337	425
FDI stock (millions USD)	4,065.3	4,402.6	4,827.7
Performance Index*, ranking on 141 economies	119	92	-
Potential Index**, ranking on 141 economies	105	-	-
Number of Greenfield investments***	3	8	-
FDI inwards (in % of GFCF****)	6.1	177.1	-
FDI stock (in % of GDP)	17.5	20.2	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Cameroon

Strong points: The country's strong points are:
- A cheap workforce; and
- Abundant natural resources;
The 2010-2011 economic plan contains measures likely to attract direct foreign investments, particularly in high capital areas (mining, food industry, energy and construction). In particulrar, the Cameroonian government is working on the establishment of a one-stop shop for the creation of companies.
Weak points: The country's main weaknesses are:
- The cost and length of time required to create a company: 37 days for a cost of nearly 150% of the per capita income;
- Tax liability;
- Corruption; and
- The lack of infrastructure.
Government measures to motivate or restrict FDI: The Cameroonian government has targeted certain sectors as priority sectors for investment: transport, food industry, tourism and rural development. In order to attract more investors, significant programs are being implemented by the public authorities, with the support of financial backers, in order to improve judicial decisions, increase energy supplies, reinforce economic information, simplify procedures, support companies, and ensure the protection of the economic area against illegal threats. Cameroon also has free trade zones in which all export companies can set themselves up, that is to say, companies that produce goods and provide services meant exclusively for export. There are a many advantages for companies: exemption from all licenses, authorization or quota limitation for both export and import, possibility of being able to open a foreign currency account, no restrictions on sales operations, purchase of foreign currency, right to transfer profits abroad (however 25% has to be re-invested in Cameroon), tax and duty exemption for a period of 10 years from the beginning of operations and taxation at a general rate of 15% on profits from the 11th year.

Procedures relative to foreign investment

Freedom of establishment: In Cameroon, there is freedom of starting a trade.
Acquisition of holdings: Foreign nationals can be 100% owners of a company.
Obligation to declare: The World Association of Investment Promotion Agencies in the country gives information on the authorizations necessary for implantation.
Nevertheless, the candidate has to satisfy, according to the circumstances, the following conditions :
- to be registered either with the Registry of Commerce or with the Communal Repertory ;
- to have made a declaration of existence ;
- to possess a professional trader's card ;
- to dispose of property and material installations when they are necessary ;
- to respect other professional obligations, especially in tax matters ;
- to obtain a prior authorization (for foreign nationals)
Competent organization for the declaration: Cameroon Info
Invest in the Franc Zone
Government Portal
Requests for specific authorizations: For more information, click on Invest in the Franc Zone.

Finding assistance for further information

Investment aid agency: Invest in the Franc Zone
Other useful resources: The International Finance Corporation (IFC) a group of the World Bank, finances projects in a variety of sectors; agro-industries, tourism.
La Caisse Commune d'Epargne et d'Investissement (CCEI) (The Bank for Loans and Investments)
The Cameroon Banking Corporation (CBC)