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A business entity is responsible for using its economic resources to provide goods or services to customers for profit. There are different business organization in Cameroon.

First, it is a note of worth stating that under Cameroon law, it is only the Trade and Personal Property Rights Registry, an agency of the Government that engages in the registration of different business organization types in Cameroon.

Business organization types come in different forms of ownership and these include:

  1. SOLE PROPRIETORSHIP/ ENTERPRISE: One person, who bears the risk and faces unlimited liabilities of the business, usually owns this type of business organization. It is easy to set up and this form of business is usually adopted by small business entities. This is usually the cheapest and most used business organization type. All decisions of the business are carried out by the owner who is responsible for all profits and losses of the business. This form of business should be considered where one intends to work alone and have complete control of the business. A sole proprietorship is usually registered as a business name with the Trade and Personal Property Rights Register.
  2. PARTNERSHIP: A partnership is a different business organization in Cameroon. This form of business is owned by two or more persons who contribute resources together to create a business entity. The partners bear the risk and liabilities of the company equally. They also divide the profit of the business among themselves. A partnership can be divided into two business organization types that are limited and general partnerships. In a general partnership, all profit and loss are shared equally among the partners, while in a limited partnership, only one partner has control of the operations of the business while the other person (s) contributes money to receive only part of the profits.
  3. COMPANIES: A company is a form of business organization that has a separate legal personality from its owners. An example of a Corporation is a joint-stock company. It provides limited liability to its investors with its legal rights to own a company. It is a legal entity that can sue, be sued, can own properties, and pay taxes. A corporation may be a form of a Private Limited Liability Company or a Public Limited Liability Company


  1. A COMPANY LIMITED BY SHARES: This is a company where the liability of a member to contribute to the company’s assistance in the event of liquidation or winding up is limited to the amount unpaid by its shares. A company limited by shares can be a private limited or a public limited liability company. It is a corporate structure where members of the company cannot be personally liable for company debt or liabilities. According to Cameroon law, it must be registered with the Trade and Personal Property Rights Register, and it requires that the articles of the company must be filed also with the TPPRR. It consists of a minimum of members and a maximum of 50 members for a private company and an unlimited number of members for a public company. A limited company by shares separates the business assets of the company from the personal assets of its owners. It states in its memorandum to be a private or public company.
  2. COMPANY LIMITED BY GUARANTEE: This is usually called a non-profit organization. It is a form of business organization whose objectives are to promote educational, religious, sports, or charitable purposes. Its hall not be incorporated with the object of carrying on a business for the purpose of making profits for distribution for its members. Any money that earned in the organization cannot be distributed to members or trustees of the organization rather it is usually kept to pay for expenses or programs. When registering a Company limited by Guarantee, it shall not be registered with a share capital.
  3. UNLIMITED COMPANY: With this type of company, the liability of a member is unlimited, and shall be liable to the full amount of the company’s debt. An unlimited liability company is not the best or most advisable form of enterprise. There are only a few unlimited liability companies in Cameroon.

Finally, it is important that out of various business organization types, a private limited liability company is still the most recognized and preferred form of business organization in Cameroon. Additionally, a private limited liability company is the most suitable form of business organization for foreigners seeking to do business in Cameroon.

Article by Barr. Mafany Victor Ngando

Kinsmen Advocates Law Firm

” The content of this article is intended to provide a general guide to the subject matter, Specialist advice should be sought about your specific circumstances”

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