Starting a Business Abroad in Cameroon: The Complete Guide for Expats

Published on April 26, 2026 and written by Cyril Jarnias

Setting up a business in Cameroon means entering an ecosystem that is both dynamic, complex, and highly codified. The country is the largest economy in the CEMAC zone, representing nearly 30% of the sub-region’s GDP, with abundant natural resources, a market of nearly 30 million people, and a very young, connected population. But it is also an environment where bureaucracy is heavy, taxation is volatile, and access to financing is difficult.

Understanding the Entrepreneurial Landscape in Cameroon

Before thinking about forms and share capital, you need to understand the environment in which your business will operate.

The economic fabric is largely dominated by SMEs: over 390,000 small and medium-sized enterprises are registered, accounting for about 99% of the productive sector. They generate more than 60% of jobs and are concentrated mostly in Douala and Yaoundé, the two main economic and political centers.

The economy is relatively diversified: agriculture and agro-industry, oil and gas, mining (bauxite, iron, gold, diamonds), timber, telecoms, logistics, digital services, energy, tourism. The country is often described as “Africa in miniature” because of its geographic and cultural diversity.

But the reality is more nuanced:

– administrative procedures are considered complex, opaque, and costly;

– taxation is often cited by entrepreneurs as the primary barrier to growth;

– the informal sector is massive, with only about 12% of SMEs formally registered;

– the banking system remains cautious, with bank interest rates above 12% and collateral requirements of 120–150% of the loan amount.

In other words: the potential is real, but improvisation is not an option.

Legal Framework: What Every Expat Needs to Know

Setting up a business in Cameroon cannot be understood solely through national laws. The country is a member of OHADA (Organization for the Harmonization of Business Law in Africa), which unifies corporate law across 17 West and Central African countries. The Uniform Act on Commercial Companies (AUSGIE) takes precedence over conflicting national texts and sets the main rules for forming, operating, and dissolving companies.

In addition to this OHADA foundation, there are:

The result is a legal architecture that is fairly solid on paper, but whose implementation can still be chaotic, with a mix of old and new texts and administrations that have varying levels of digitization.

For a foreign investor, a key point: it is possible to hold 100% of the capital of your company in most sectors, without the need for a local partner, although some strategic activities (hydrocarbons, mining, telecoms, etc.) often involve state participation or enhanced “local content” requirements.

Choosing Your Legal Structure: SARL, SA, Branch… Which One to Pick?

The choice of legal vehicle is strategic. It affects liability, access to financing, partner perception, and the level of administrative complexity.

Overview of the Main Structures

OHADA law as applied in Cameroon includes:

For an expat launching a “standard” business (services, B2B commerce, tech, agro-processing, etc.), the SARL / SAS duo covers most needs.

SARL: The Pragmatic Choice for SMEs

The SARL offers liability limited to contributions, a reassuring image for local partners, and a formation process that is now well-established.

Key figures (amounts vary by source and regulatory updates):

For a small expat structure, a single-member SARL is common: one shareholder, who can also be the manager.

SA and SAS: For Scaling Up

The SA is designed for larger projects:

The SAS, newer in the OHADA framework, attracts innovative projects and flexible joint ventures: no minimum legal capital, great freedom to organize powers in the articles of association, president with broad authority.

Branch, Liaison Office, Subsidiary: For Foreign Groups

– A branch is a direct extension of the foreign company, with no separate legal personality. The parent remains liable for all debts. In principle, its duration is limited to two years, after which conversion into a local company is expected, unless a waiver is obtained from the Ministry of Commerce.

– A liaison office is suitable for prospecting or representational presence, without any receipt of payments or direct local sales.

For an expat not backed by a large group, the local SARL or SAS is generally the most coherent path.

Expat: What Are the Conditions for Creating and Managing a Company?

In principle, any adult individual can form a company in Cameroon, including a foreigner, with the possibility of holding 100% of the shares.

However, certain requirements are mandatory:

– be at least 18 years old;

– not be bankrupt in your country of origin;

– provide a clean criminal record (or sworn declaration, depending on the case);

– not suffer from a mental disorder that prevents management;

– hold a valid passport;

– be able to prove an address in Cameroon (commercial lease or domiciliation agreement via a law firm or fiduciary).

– an appropriate visa (long-stay);

– a work permit authorizing paid employment or a paid director role;

– a residence permit (residency card) to stay beyond six months.

Cameroonian labor law is strict: a foreigner is only allowed to work with a contract validated by the competent ministry, and the employer must demonstrate that no national was available for the position. This “Cameroonianization” of jobs also applies to investment projects benefiting from tax incentives.

The Administrative Process for Company Formation: The Central Role of the CFCE

To simplify things for business creators, the government has set up Centers for Business Creation Formalities (CFCE) in each region. These one-stop shops, attached to the ministry in charge of SMEs, aim to centralize formalities: trade register, tax registration, social registration, etc.

In theory, the state promises formation in 72 hours. In practice, entrepreneurs experience more variable delays, especially when files are incomplete or certain documents (criminal record, notarized deeds, tax certificates) are slow to come out. Expect 2 to 8 weeks for a fully operational opening considering all steps (formation, registration, bank, sector licenses).

The Main Phases of the Process

The process can be structured into three stages:

– 1. Pre-formation

– define the activity and company category;

– choose the structure (SARL, SA, etc.) and ownership structure;

– check availability and reserve the business name;

– prepare the draft articles of association and shareholder documents.

– 3. Post-formation

– obtain the taxpayer card and tax identification number (NIF) from the DGI;

– register the company with the CNPS (social insurance) as soon as the first employee is hired;

– apply for sector licenses (import/export, energy, telecoms, construction, etc.);

– open a professional bank account in the company’s name;

– if needed, publish a notice of incorporation in a legal announcements newspaper;

– set up accounting and internal procedures (invoicing, payroll, tax declarations).

Typical Documents for a SARL or Sole Proprietorship

The required documents vary by legal structure, but generally include:

For a sole proprietorship, the list is lighter (ID, certificate of no criminal record, marriage certificate for married women, lease agreement, location plan), but liability is unlimited.

How Much Does It Cost to Form a Company?

Formation involves various legal and tax fees. Available data gives an order of magnitude:

For a basic SARL, it’s reasonable to budget a few hundred thousand CFA francs (excluding capital), especially if you hire a local firm to handle the procedures.

Opening a Professional Bank Account: A Strategic Bottleneck

Without a bank account, no structured activity, no capital deposit, no credibility with partners. In Cameroon, the banking framework is regulated by the BEAC (Bank of Central African States) and the COBAC (Central African Banking Commission). The country is part of the CEMAC zone, which implies specific foreign exchange and international transfer rules.

Useful Account Types for an Expat Entrepreneur

Commercial banks offer a range of products:

NRC = Non-Resident Cameroonian, a specific product for nationals living abroad.

Conditions for a Foreigner

Banks allow non-nationals to open accounts but have clear requirements:

The physical presence of the director is often required for signatures. Some banks, for non-resident accounts, allow remote setup with a power of attorney.

Banking Costs to Expect

Fee schedules vary, but some benchmarks can be identified:

Expatriates should compare several banks (Société Générale Cameroun, BICEC, UBA, Citibank, Standard Chartered, etc.), especially for:

– quality of online services;

– experience with international transfers;

– ability to open foreign currency accounts;

– availability of a French/English-speaking contact depending on your profile.

Leveraging Cameroon’s Investment Incentive Regime

Since 2013, Cameroon has had an incentive system, extensively revised in 2017 and again in 2025 by an ordinance that repealed previous texts. The objective: attract more private investment, especially in priority sectors (agribusiness, industry, digital, logistics, energy, health, education…), while avoiding a surge in tax expenditures.

Key Principles of the New Regime (2025)

The regime distinguishes two main phases:

– the installation phase (up to 5 years maximum);

– the operational phase (5 years, extended to 7 years for certain export-oriented projects or those in special economic zones).

The major innovation is a shift from massive corporate tax rate reductions to a tax credit mechanism. Specifically, an invested and approved project can benefit from:

– a tax credit of up to 75% of the amount invested, under the common regime;

– up to 80% in priority development zones.

For large-scale projects (PPPs, economic zones, investments of several billion CFA francs), specific regimes may apply, including:

– exemption from certain import duties and taxes on equipment;

– accelerated depreciation;

– VAT absorption on project-related acquisitions;

– and sometimes, state contribution to access infrastructure costs (roads, energy, water).

Which Sectors Interest the State Most?

Historically, the incentive package targeted industry, agriculture, forestry, tourism, mining, and ICT. The 2025 reform extends the list to:

– automotive industry;

– education and health;

– data storage and processing infrastructure (data centers);

– air, rail, and maritime transport;

– large distribution and logistics platforms.

Conversely, general trade and simple distribution activities are explicitly excluded from benefits, as the state wants incentives to target production and processing.

Steps to Benefit from Incentives

The single entry point is the Investment Promotion Agency (API), transformed into a true one-stop investment shop. The agency promises to process files in ten days, which for now should be seen as a target rather than an absolute guarantee.

The investor must submit an approval application describing:

– the nature of the activity and the sector;

– the amount and timeline of the investment;

– the financing plan (equity, debt, partners);

– job creation forecasts;

– commitments regarding training, skills transfer, and use of local suppliers.

Once approved, the company receives the benefits for the specified period, subject to meeting its commitments and producing an annual monitoring report. In case of serious non-compliance, the state may withdraw the approval and reclaim benefits improperly obtained.

Taxation and Customs: A Framework to Integrate from the Business Plan

Beyond special regimes, the norm remains a tax and customs environment perceived as heavy by local entrepreneurs. Indicative rates from texts and studies:

– Corporate tax: around 33% for a standard SARL or subsidiary;

– Free zone regime: corporate tax rate 0% for 10 years, but prohibited from selling on the local market;

– Withholding tax on dividends and interest: about 16.5%;

– Customs duties: three levels of 10%, 20%, and 30% depending on the goods.

For an expat, the challenge is twofold:

– anticipate the tax burden in the business model, without deluding yourself that special regimes will magically erase taxes;

– work from the outset with a local tax advisor to avoid regime errors (wrong VAT option, incorrect activity categorization) that can be costly in audits.

Working and Hiring as an Expat: Visas, Permits, Constraints

Cameroon has a strict immigration policy. Any foreigner wishing to work locally must have:

1. an appropriate visa to enter; 2. a work permit approved by the authorities; 3. a residence permit for long-term stay.

Types of Visas Useful for Entrepreneurs

The main categories relevant for a business creator:

– Short-stay visa (up to 6 months): for exploratory missions, business meetings, trade fairs. The “business visa” subcategory allows meetings and negotiations, but no paid local employment.

– Long-stay visa (up to 12 months): for people settling more permanently, especially with a view to obtaining a residence permit.

– Work visa: linked to a validated employment contract; it remains formally a long-stay visa, but associated with a work permit.

Applications are made online via the official portal or at embassies and consulates. Embassies typically require:

– recent passport (valid at least 6 months beyond the stay, with two blank pages);

– application form;

– photographs;

– proof of funds or invitation letter;

– medical certificate, proof of yellow fever vaccination;

– criminal record or equivalent;

– proof of flight and accommodation reservations.

Processing times vary from 2 to 4 weeks for a business visa, longer for a full work visa. The cost depends on nationality, ranging from about 70 to 300 USD.

Work Permit: A Process Initiated by the Employer

The work permit (or authorization to employ a foreigner) is requested by the employer – including if you are both the shareholder and manager of your own company. The procedure involves:

– a written request to the competent ministry (Labor / Employment and Vocational Training);

– submission of an employment contract in several copies (six, according to a decree), signed by both parties;

– evidence demonstrating the absence of a Cameroonian candidate for the position (job Cameroonianization plan, company organization, possibly a certificate of labor shortage);

– extract from the trade register, taxpayer card, up-to-date CNPS certificate;

– diplomas, CV, professional references, medical certificate, and criminal record of the foreign candidate.

Administrative silence for two months may, in some cases, constitute tacit approval of the contract. During processing, a deposit receipt sometimes allows temporary exercise of the activity.

Work authorizations have a limited duration (often one year renewable, up to two years), and any substantial change (position, employer, location) may require new approval.

Business Culture: How to Avoid Missteps

Ignoring local culture is the best way to sabotage an otherwise well-designed project.

A Hierarchical and Relationship-Oriented Society

Cameroon is deeply hierarchical: age, position, and social status weigh heavily in interactions. Important decisions often go up to senior management or shareholders, even if middle managers play an influential role.

Keep in mind:

– arrive on time, but don’t expect everyone to be strictly punctual;

– meetings rarely start with business: first talk about health, family, current events;

– a direct no is rare: “we’ll see,” “it’s not easy,” or prolonged silence may mean refusal;

– titles (Doctor, Director, Mr. Mayor…) are widely used and appreciated.

Corruption, Cronyism: How to Navigate Without Compromising Yourself

Entrepreneurs, both local and foreign, regularly cite corruption as a serious obstacle: stalled files, informal demands to speed up a procedure, favoritism.

Some concrete safeguards:

– structure your relationships through a law firm or a reputable local advisor who knows who to contact and how, within the law;

– systematically document your exchanges with government agencies;

– refuse unreceipted payments;

– rely on chambers of commerce, embassies, and professional organizations to resolve blockages.

Choosing Your Location: Douala, Yaoundé, or Elsewhere?

The location of your registered office and activities affects access to market, talent, and infrastructure.

– Douala is the economic heart: over 3 million inhabitants, main port, international airport, high concentration of banks, multinational headquarters, logistics companies, and industries. Neighborhoods like Akwa (historic business district), Bonanjo (institutions, large companies), or Bonapriso (upscale residential and commercial area) concentrate many high-end offices, with corresponding rents.

– Other cities like Kribi (deep-water port and industrial zone), Limbe (oil), Buea (“Silicon Mountain” tech ecosystem), Bafoussam, or Garoua offer more targeted opportunities (industry, agriculture, tourism, digital), often with lower real estate costs but less developed infrastructure.

Business real estate needs are covered by:

– traditional offices (commercial leases);

– coworking spaces and flexible offices (Regus, Spaces, HQ, local centers) including internet, meeting rooms, reception services, and domiciliation options.

For an expat in the exploratory phase, starting with a shared office or a private office in a business center allows testing the market without committing to a heavy lease.

Access to Financing: Clarity and Strategy

Even for a foreigner with comfortable equity, considering local financing is useful: leverage, credibility with partners, currency hedging, etc.

The picture remains mixed, however:

– conventional bank credit often requires collateral exceeding 120–150% of the borrowed amount;

– interest rates are around or above 12% per annum;

– microfinance has even higher rates (average 18%) and looser oversight.

At the same time, new avenues are emerging:

For an expat, the most realistic combination is often:

1. a core of equity brought from abroad; 2. targeted bank financing (equipment, working capital) if collateral exists; 3. seeking incubation or acceleration programs offering mentoring, networking, and sometimes small funding packages.

Best Practices to Maximize Your Chances of Success

Setting up a business in Cameroon as an expat is neither about “taking advantage of cheap labor” nor “riding a wave of growth.” Some principles from local experience stand out.

1. Partner with a reliable local partner, without giving away control of your project. A good partner brings: deep understanding of the codes, access to networks, better reading of political and social risks.

3. Adapt your model to the weight of the informal sector: competition from unregistered players, free from certain costs, can be tough. You need to play on quality, reliability, added value, and sometimes prefer B2B models (formal businesses, government agencies, NGOs) less sensitive to price alone.

4. Digitize from the start: with mobile penetration above 85% and over 11 million internet users, ignoring digital would be a mistake. Whether for marketing, management (ERP, CRM, e-invoicing eventually), collections, or customer relations, digital tools are a competitive advantage.

In a country where “99% of business is done through relationships,” building a network of allies (chambers of commerce, professional orders, associations, incubators, American Chamber, etc.) is not a luxurious extra; it is the core of the strategy.

Advice for entrepreneurs in Cameroon

6. Get proper legal and accounting support: choosing a law firm and an accountant experienced with foreign investor cases helps avoid most pitfalls: wrong tax regime, inappropriate articles, shaky contracts, social non-compliance.

7. Take risk management seriously: regional political instability, security tensions, power cuts, administrative slowness, currency risks… must be clearly outlined in your scenarios and contingency plans.

In Conclusion

Creating your business in Cameroon as an expat means navigating between strong potential – demographics, SME dynamism, rising digital economy, stated state ambition – and very real obstacles – heavy bureaucracy, burdensome taxation, massive informality, governance risks.

It is neither an automatic eldorado nor an impassable minefield. Those who succeed are generally those who:

With serious preparation, a realistic vision, and adaptability, setting up a business in Cameroon can become a solid and profitable project, while contributing to the growth of a key African market for the coming decades.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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