Cameroon SubsidiaryReading Time: 3 minutes
Planning an expansion to Cameroon is full of excitement and promise for your company. You have the opportunity to hire talented employees, work with foreign companies, and potentially offer new products and services. However, it can feel 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.
Globalization Partners offers an easier way to expand through Cameroon subsidiary outsourcing. Our team is full of global compliance experts who will work hard to make sure your company is meeting or exceeding the laws and regulations in your country. You won’t even have to set up a Cameroon subsidiary when you work with us since we can act as the Employer of Record with our existing subsidiary.
How to Set up a Cameroon Subsidiary
Your company needs to consider many factors before you start to look at how to set up your 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 your 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 your employees and company at the National Social Insurance Fund (CNPS) and Labor Office
- Opening a local bank account
- Depositing 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 one resident director and one shareholder of any nationality that can be an individual or a corporate body. You also have to deposit $1,900 in 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 $19,000
- Annual turnover over $477,000
- More than 50 employees
Benefits of the Cameroon Subsidiary Setup Process
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 choosing Cameroon subsidiary outsourcing with Globalization Partners. 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 shoulder all compliance, so you can have complete peace of mind about your company.
Everything You Need to Incorporate
We recommend working with an expert in Cameroon subsidiary laws if you’re incorporating without the help of a global PEO. 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 also need a significant amount of time to set up your Cameroon subsidiary. It can take months to incorporate fully, and you’ll need to travel back and forth to Cameroon often. 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.
Contact Us to Learn More
Globalization Partners wants to help you make the most of your expansion. Contact us today to learn more about Cameroon subsidiary outsourcing.