February 27, 2021

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How To Start A Business Plan In Cameroon

10 min read
How to start a business plan in Cameroon, Business Leaders

How to write a business plan In Cameroon.

Starting a business in Cameroon has become easy these days and with a lot of businesses rising up, have your stand in the economy today before you miss to become an economy growth legend. Build and write a business plan in Cameroon today. Start a business plan in Cameroon in less than no time.

Starting a business in Cameroon is easier than before

If you have a business in mind and thinking of the best time to start it, it should be now. Today, the Cameroon economy and its laws permits many young entrepreneurs even women entrepreneurs to establish businesses, travel for business trips without a male companion, women owning businesses without the knowledge or consent of their husbands. The laws of this present economy is favors the opening of new and powerful businesses. Having a business in mind in Cameroon? Then let me guide you through this venture.

Seeking to get further assistance, kindly contact us.

Now, Business Leaders has with its main goal to ESTABLISH 10 THOUSAND ENTREPRENEURS IN 10 YEARS. We are here for young entrepreneurs like you willing to extract from the world of business.

Cameroon is a bless country still under development and seek your chances to be part of the leading businesses in Cameroon and in the West Africa. Her situation of being less developed is a technical advantage for rising entrepreneurs to have a stand in the economy before it booms.

Lead-biz.com (I, We) will lead you through this venture to have a solid business plan for that is our purpose to our readers and clients.

Without any waste of time let’s get you started and if you will like to receive updates about businesses and how to grow in wealth from your business, subscribe to our mailing list below.

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Before we go into details, know these 6 things first;

How to start a business plan in Cameroon.Leadership, Business leaders

  • Do research; know the country’s laws and what the people need.
  • Put down your plan on paper
  • Be proficient in the country’s two languages.
  • Get the right information, meet and create the right network
  • Have the right mind-set
  • All challenges have solutions

 

Do research; know the country’s laws and what the people need.

You cannot go into an empty venture. You do business because you have seen a pressing need and a solution to economic problems. What people need and if you implementing them will help others.

Any entrepreneur willing to start up any business in Cameroon has to do some professional homework regarding the country’s business and tax laws, including general marketing analyses.

Having these in mind will make your business friendly to the economy. Cameroon’s business law is harmonized under the OHADA treaty like other countries in West and Central Africa.

 

Put down your plan on paper

Now this is where you need to start a business plan in Cameroon with law friendly motives. It is always recommended to schedule a business plan on a paper-work. Having a well elaborated business plan will remind you of the taken objectives and strategies to be implemented. It helps you to be goal oriented that is, target focused. Start with a plan, work with it, develop it in the long run as you grow, rearrange things and perfection it.

Be proficient in the country’s two languages.

Cameroon is a bilingual country with national languages; English and French. Knowing these will give you a stand to function anywhere and boldly. Building a strong bond with the bilingual economy. Get a bilingual system and don’t limit your business.

Get the right information, meet and create the right network

Meeting and creating the right network is very essential for business growth. Many businesses fall because they didn’t meet with the right network and have not met or build good business relationships. Get in contact with radical entrepreneurs in your field, establish lasting bonds with them. Good relationship brings good guidance and excels in business.

The government of Cameroon has been striving to assist entrepreneurs in setting up and running their own businesses in Cameroon through the One-Stop Pilot Center. The Center is one of out of the many other investing platforms in Cameroon. These centers unite all administrative services for creating a business –including taxation, insurance, treasury and customer service.

There are places where people can find out what documents they need to prepare and fees they need to pay in establishing their businesses. Any person willing to start up a business should go to these places to get the right information. These centers have eased the process of creating businesses in Cameroon, which now is supposed to take between three to five days.”

 

Have the right mind-set

Having a right mindset will set you apart from business shutdown situations.

  • Passion first,
  • We are connected,
  • Everything is possible,
  • 100 percent accountability,
  • Attitude of gratitude,
  • Live to give, and
  • The time is now.

All challenges have solutions

If you want to start a business plan in Cameroon today, build it with intention to provide solutions. Have in mind that all challenges have solutions. Build a business that can stand the gap and provide a solution to a problem either economic or social problem. Be creative and innovative, give room for ideas and get started today.

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We have just begun…

Starting a Business in Cameroon

Step One; WRITE A BUSINESS PLAN

Before starting any business in Cameroon or anywhere on earth, draft a strong business plan that includes in-depth information on your business concept, available resources, projections, strategies, research, and more

 

To Note;

Business in Cameroon adheres to the OHADA schema of corporate law, an acronym for the French title “Organisation pour l’harmonisation en Afrique du droit des affaires”, which translates into English as “Organisation for the Harmonization of Corporate Law in Africa,” and is a corporate law scheme applied in 17 African states (currently) and is meant to counteract economic underdevelopment in sub-Saharan Africa. OHADA aims to foster a positive investment climate in its member states and thus promote both domestic and foreign investment.

 

Once you have written a well structured business plan, you will now be able to know which business structure will best fit your enterprise. This will guide you to understand the size of your company, the needs and ways of operations.

Start a business plan in Cameroon today

A business structure in Cameroon is categorized into 4 types;

  • Private limited company (SARL)
  • Public limited company (SA),
  • Sole Proprietorship,
  • Or a Foreign Branch (Succursale)

 

A Private Limited Company (SARL)

  • Requires at least one director and one shareholder
  • Minimum share capital of XAF 1,000,000.

There is also an important difference between a SARL run by one director and a multi-person SARL run by a board of directors. Regardless, both structures must open a bank account for their business and have at least 1 million XAF or around 1760 USD for launch capital.

A Public Limited Company (SA):

  • Requires at least one director and one shareholder (can be a person or company)
  • Needs at least XAF 10,000,000 in divided share capital if the company wishes to be publicly listed upon registration.
  • Must appoint 2 auditors, 4 if listed at the Douala Stock Exchange.

A Succursale:

  • Requires at least one regional director (can be of any nationality) to oversee business in Cameroon.
  • Every two years, must seek branch status renewal from the Ministry of Trade and Commerce, or register in Cameroon as a Limited Company. http://www.mincommerce.gov.cm/

 

STEP TWO: REGISTERING

Now you know what business structure your company best suits at, now you need to register you business. A registered business is a business backed by law. Get your business registered in Cameroon at the Center for Enterprise Creation Formalities (CFCE),  Registration can be expected to take from a couple of days to a couple of weeks, and incorporation can take up to five weeks. You’ll also need to get a tax number and a business patent from the Taxation Department, where you’ll need to pay an annual fee. If you’ll be hiring, you’ll also need to register with the National Social Insurance Fund (CNPS)  and the Labour Office.

The CFCE currently has five centers within the Minister of Small and Medium Enterprises in Social Economy and Artisanship, and can be found in Yaoundé, Douala, Garoua, Bamenda and Bafoussam. Here is what you’ll need, depending on what kind of business you are registering:

Individual Enterprises

  • A photocopy of a national ID card or birth certificate
  • A photocopy of your marriage license, if applicable
  • An affidavit stating that you are not forbidden to practice business in Cameroon
  • An affidavit attesting to your residency in Cameroon
  • In case of a loan or investment, the proper paperwork to demonstrate your possession of funds
  • An authorization to practice commerce, if applicable

There are some businesses in Cameroon that owners may need to apply for special permits, licenses or government authorization before they can start activities. You will have to do a research to find out if your business needs one before it goes operational because you may have to answer with the authorities if you don’t get one.

  • A location plan

Once you are done with registering your business and getting the necessary licenses or authorizations, you need to setup a location for your business. This is a very important point to take note of because it depends a lot on many factors. You know you are a startup and need to minimize cost a lot. You have to think whether to start at home, a shared office or retail location. You may also setup your office where you source your raw materials or market to reduce unnecessary costs.

Foreign Investors

  • A copy of your passport or visa/residency card
  • An affidavit stating that you are not forbidden to practice business in Cameroon
  • An affidavit attesting to your residency in Cameroon
  • A copy of marriage certificate if applicable,
  • A photocopy of your marriage license, if applicable
  • A 4×4 ID photo, color or black and white
  • A location plan signed by the applicant

 

LASTLY STEP THREE;

Tax Obligations

Here, we’ve round up information on the notable tax expenses your business in Cameroon may incur include but are not limited to:

  • Value-Added Tax(TVA): 19.25%. Excise taxes of 25% apply to cigarettes, cosmetics, and luxury products.
  • Company Tax: 33% (30% corporate tax increased 10% for communal taxes)
  • Capital Gains Tax: Gains from the sale of listed shares or the transfer of rights related to natural resources may incur a 16.5% withholding tax.
  • Professional Tax:  please note that newly-incorporated businesses in Cameroon are exempt from this tax during the first year of operation.
    • 159% turnover of large companies (a minimum contribution of XAF 5 million and a maximum of XAF 2.5 billion)
    • 283% turnover of medium-sized companies (a minimum contribution of XAF 141 500 and a maximum of XAF 4.5 million)
    • 494% turnover of small companies (a minimum contribution of XAF 50,000 and a maximum of XAF 140,000).

To note, newly incorporated businesses are exempt from this tax in their first year of operation.

With a large, educated, and bilingual workforce, a cosmopolitan outlook, and beneficial economic agreements within the domestic government and on an international scale, starting a business Cameroon is a compelling option when considering where you’ll find economic opportunity coupled with a great pool from which to draw your workforce. 62.5% of Cameroon’s population is under the age of 25, and with a high literacy rate only set to come closer and closer to 100%, Cameroon is a country with a fantastically competent work force and numerous economic opportunities for you and your ventures. Business in Cameroon is booming take your advantage now at this growth stage and don’t be left out.

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START UP BUSINESS FACTS THAT BOOST

startup business plan in cameroon

Recruit team members

As a startup, you may not have the capacity to start employing workers. Make sure you choose your team members well. When choosing your team members or partners for a business, make sure you look for those who are right for the position. Think of what they can offer and not how related you are to them

Make sure you keep your accounts straight

What I mean here is that you need to set up an accounting system for your business. Many small business owners rarely take their accounting serious. This is one of the most important aspects if you plan to start a business in Cameroon. An accounting system will help you to manage your budget, costs, set prices and many others. Setting up an accounting system is not that difficult. You can employ someone to do it for your, do it yourself or even outsource it to a small business accounting firm.

Sell your business’ image like it’s never been done before

Everything is now set up and you are ready to do business. You you decided to start a small business Cameroon in the first place to sell your product or services. Now you have to make sure people know about the product or service you are offering. You can create a marketing plan for your business after you must have identified your target market.

Promoting your business is very cheap especially for entrepreneurs in Cameroon. You don’t need a bill board, radio or TV adverts at the beginning because we all now how expensive they are. Social media is widely used today and very cheap. Digital marketing is the new marketing technique that effectively converts your audience into customers.

Business Leaders team is glad to have you at the final conclusion of this article, please leave your review if this article was helpful and do contact us if you encounter any problem or need help.

Together let’s grow “Ten Thousand Entrepreneur in Ten Years.” Start a business plan in Cameroon today.

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