Everything you need to know to set up an operating company with a bank account.
• Banks are not at all subject to strict customer due diligence regulations (old FATF recommendation 5 / new FATF recommendation 10).
• Banks are largely required to maintain sufficient records of their customer and transaction data for law enforcement (old FATF recommendation 10 / new FATF recommendation 11).
• Banks and / or other covered entities must report large transactions in currency or other monetary instruments to designated authorities.
• There are undue notification and recourse rights against the exchange of banking information upon request.
• The national administration has sufficient powers to obtain and provide bank information
HThere are several ways of doing business in Cameroon, the most common being the creation of a limited liability company (SARL). Investors can also establish a public limited company (SA). Alternatively, foreign companies have the option of establishing a branch or representative office.
The Cameroon SARL is the legal entity most used by entrepreneurs to establish SMEs in Cameroon. A SARL must appoint at least 1 resident director and 1 shareholder of any nationality. The shareholder can be a natural or legal person. A minimum paid-up share capital of US $ 1.900 is also required to complete the incorporation process.
This entity must appoint a statutory auditor to verify its accounts only if:
Cameroon SA requires the incorporation of at least 1 shareholder and 1 resident director of any nationality.
The shareholder can be a natural or legal person and can be a resident of any country. A minimum paid-up share capital of US $ 19.000 is required to complete the business setup in Cameroon. However, a higher share capital of US $ 190.000 is required after company creation in Cameroon, if the company intends to go public.
A Cameroon joint-stock company must also appoint 2 auditors in order to verify the company's accounts. If listed on the Douala Stock Exchange market, an SA must appoint 2 additional auditors.
Foreign companies can open branches of their foreign legal entities in Cameroon. The branch can enter all business lines in Cameroon, although its scope of action must be previously defined by its parent company. The branch must appoint at least one resident director, of any nationality, to oversee the company's operations in Cameroon.
A branch can only be operational for a maximum period of 2 years, after which it must be fully incorporated as a limited company in Cameroon. However, operations as a branch can only be renewed every two years, provided that the approval has been granted by the Ministry of Commerce and Commerce.
Although 100% foreign ownership of a representative office is allowed, it is not considered a legal entity and it is not allowed to make direct sales in Cameroon. This entity is only authorized to carry out:
Foster Swiss helps our Clients secure offices or we provide an office address. Most emerging markets require our Clients to have a 12-month office lease before company registration is approved.
We help our Clients overcome this challenge in the following ways:
DDepending on the country and city, the rates range from US $ 900 to US $ 2000 and the annual active virtual office services range from US $ 1500 to US $ 4000).
LThe one-time fee is US $ 850. Thereafter, our Client pays the monthly rent directly to the owner).
D Depending on the country and the city, the rates range from US $ 5.000 to US $ 8.000).
Corporate income tax in Cameroon is applied at a standard rate of 33%. Legal persons must register for taxation with the Ministry of Finance and must file annual tax returns before March 15 following the end of the fiscal year.
The value added tax (VAT) in Cameroon is applied at a standard rate of 19,25%. Companies with a taxable annual turnover must register for VAT and file returns before the 15th of each month.
A withholding of 16,5% is applied on:
A reduced corporate tax of 10% is charged on dividends remitted to companies provided that
A 15% withholding is applied to royalties paid to non-resident companies. However, the rate may be reduced when a double tax treaty is applied. The capital tax is applied based on the capital stock of the company at a regressive rate of 2% and 0,25%.
Employers must submit monthly:
Other taxes in Cameroon include
A capital gains tax of 11% is levied on income from the sale of shares. Cameroonian companies can carry forward their business losses for a period of 4 years, but carryover is not allowed. Cameroon has so far signed 4 double tax treaties with Canada, the United Kingdom, Tunisia and France.
Phe corporate income tax is high in Cameroon, with a standard rate of 33% and an alternative minimum tax of up to 5,5% of the company's turnover.
Companies that send interest and dividends abroad are also subject to a 16,5% withholding tax rate, unless reduced by a double taxation treaty.
Cameroon has signed only eight treaties to avoid double taxation, namely with
The Cameroonian government is notorious for its widespread bribery, nepotism and corruption in all sectors of its economy.
• The national business registry does not include the identity information of the legal owner.
• Information on legal partners / owners is not always available online (up to 10 EUR / GBP / USD).
• Available companies where only some legal owners are registered.
• Updating the information on the identity of the legal owners is not mandatory.
• Companies available without registered information on beneficial owners.
• There is an obligation to maintain accounting data.
• It is not always necessary to present the annual accounts to a public authority
• No country-by-country public reporting at all.
• There is NO requirement for local submission of a global country-by-country reporting file (in accordance with OECD BEPS Action 13) by large corporate groups (with a worldwide turnover of more than 750 million euros) and subsidiaries premises of foreign groups.
• Unilateral cross-border tax rulings (eg advance tax rulings, advance tax rulings) are NOT available in laws or regulations, or administrative practice.
• The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory.
• The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory for some financial market operators.
• The use of an annually updated LEI for the identification of reporting financial institutions (in accordance with the Common Reporting Standard (CRS) is not mandatory.
• There is no unilateral exemption from double taxation.
• None or restricted access to CRIMINAL AND CIVIL TAX PROCEDURES.
• None or restricted access to both criminal and civil tax judgments / verdicts
• The jurisdiction does not accept the circulation of large bills / cash notes of your own currency (value over 200 EUR / GBP / USD).
• Bearer shares are not available.
• Series LLC / Shielded Cell Companies are not available.
• Trusts with escape clauses are NOT prohibited.
Cameroon it is not on the FATF List of countries that have been identified with strategic AML deficiencies. The last Mutual Evaluation Report regarding the implementation of the regulations to combat money laundering and terrorist financing in Cameroon was carried out in 2008. According to this Evaluation, Cameroon was considered Compliant by 0 and largely Compliant by 10 of the 40 + 9 FATF Recommendations.
Cameroon is not a signatory to the Multilateral Competent Authority Agreement (MCAA), which provides the multilateral legal framework to engage in Automatic Exchange of Information (AEOI) in accordance with the OECD Common Information Standard (CRS).
The international and digital banks They're available.
Real bank operations: 90%.
Visa type: XAF Fr, US $, €.
Joint accounts: SI.
Remote management account: To consult.
Asset management Depending on the rating of the company.
Rates: It depends on the type of account.
Credit / debit cards in local currency
Crypto-friendly banks: Depends on the correspondent bank.
Portfolio availability: No or depends on the correspondent bank.
Ability to issue letters of credit: SI
Foster Swiss is an international company registered in Switzerland aimed at providing financial and compliance advice on a variety of topics related to company formation
and commercial banking internationally. We are specialized in the implementation of businesses in different jurisdictions, which means that we offer value-added services helping our clients in their expansion abroad.
Some of these services include:
Advice and consultancy,
visas, offices, nominated director / shareholder / secretary,
accommodation if necessary… to name a few.
Check with your assigned consultant for more information.