(Business in Cameroon) - The creation of Limited Liability Companies (LLCs) could be further simplified in Cameroon if the country sticks to the priority action plan presented at the end of the 11th edition of the Cameroon Business Forum (CBF) held on October 22, 2020, in Yaoundé.
Indeed, during this public-private dialogue platform, the country was recommended to reduce the “minimum capital requirement from XAF100,000 to XAF5,000 for limited liability companies that are not setting up their companies via a notary.” Applying this measure would mean a XAF95,000 reduction in the funds needed to establish such companies.
The Ministry of Justice, in charge of SMEs and the Centres of Business Creation Formalities (CBCF), was tasked to work towards the implementation of the measure by the end of March 2021.
Also, the CBF encourages the use of private deeds in the creation of limited liability companies. This would, among other things, improve Cameroon's ranking in the World Bank's Doing Business report.
Let’s note that a few years ago, the minimum capital required to establish a limited liability company in Cameroon was XAF1 million but, it was reduced to XAF100,000 thereafter.