Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Cameroon. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
|No.||Procedure||Time to Complete||Associated Costs|
|1||A notary public drafts certificate requesting a commercial bank to open a bank account for the new company||1 day||no charge|
|2||Deposit the initial capital in a bank and obtain a receipt||1 day||no charge|
|3||Have an attorney/notary or shareholders draft the memorandum and article of association; sign company bylaws before the notary||2 days||2% of the share capital up to XAF 3,000,000 and 1,5% for the capital from XAF 3,000,001 to 10,000,000 + XAF 1000 per stamp (10 stamps)|
|4||Notary or entrepreneur files registration documents to the One-Stop-Shop||8 days||XAF 41,500 for Registration|
|5||Publish the incorporation of the company in the legal journal (Cameroun Tribune)||3 days||XAF 57000|