According to Article 3 of the Uniform Act relating to Commercial Companies and Economic Interest Groups in Cameroon, any person, whatever their nationality, wishing to engage in the form of a company shall choose a form of company, which suits the activity, envisaged from among those provided by the Organization for the Harmonization of Business Law in Africa (OHADA) Law.
The regime and activities of an employee placement company in Cameroon is regulated by Decree No. 2021 /21 24 /PM of April 24, 2021 fixing the conditions of opening and the minimum rules of operation of temporary work companies.
What is a Temporary employment company under Cameroon law?
Any natural or legal person holding an approval issued by the Minister in charge of employment authorizing it to temporarily make available to companies a workforce that it hires and pays.
What is casual employment under Cameroon law?
Any work intended to absorb an unforeseen increase in the company’s activities, or to carry out urgent work to prevent imminent accidents, to organize rescue measures or to repair equipment, installations or to carry out repairs to equipment, installations or buildings of the company that present a danger to the workers.
What is seasonal employment under Cameroon law?
Any work related to the cyclical or climatic nature of the company’s activities.
What is temporary employment under Cameroon law?
Any temporary work, the purpose of which is either to replace an absent worker or one whose contract is suspended, or to complete a job within a specific period of time requiring the use of additional manpower:
Does an employee placement company in Cameroon need approval?
Yes, from the minister in charge of employment in Cameroon.
What is the duration of a concession agreement for an employee placement company registered in Cameroon?
3 years renewable
Under what conditions can a concession agreement be granted to a registered employee recruitment company in Cameroon?
In line with Article 4 of Decree No. 2021 /21 24 /PM of April 24,2021, the registered employee recruitment company in Cameroon has to fulfil the following conditions before an agreement/authorization can be granted;
- A request stamped at the current rate, addressed to the minister in charge of employment issues ;
- A plan or a certificate of location of the company, certified to the Town Hall or the
- the competent tax department;
- A copy of the promoter’s National Identity Card and birth certificate;
- A certificate of nationality and a certificate of residence of the promoter;
- A bank guarantee called “solvency guarantee” of twenty-five million (25 000 000) francs issued by an approved commercial bank;
- A certificate of subscription to a civil liability insurance policy etc.
How many shareholders should an employee placement company have upon registration in Cameroon?
An employee placement company can have as many shareholders as possible. The shareholders can be physical persons or legal persons. However, the shareholders should not be prohibited by the factors of being a convict, bankruptcy or not legally qualified to own shares in a company.
What should promoters look out for prior to register an employee placement company in Cameroon?
The promoters should ensure that they are qualified to be awarded a license/authorization to operate by the Ministry in charge of employment in Cameroon.
The promoters should ensure that the services their company seeks to offer meet the required standards of the industry.
The promoters should also ensure they are not barred from registering a company under Cameroon law.
Under what type of company can an employee recruitment business be registered in Cameroon?
An employee recruitment business can be registered under two forms of companies. A private limited company and a public limited company. This will be based on the minimum share capital to be contributed by the founders upon incorporation of the company.
Are there any financial requirement to be granted an authorization to operate an employee recruitment company in Cameroon?
Yes. 25,000,000FCFA
What are the contributions to be paid to the capital of an employee recruitment company in Cameroon?
Cash contribution, Service contribution and Contribution in kind.
Can a shareholder of a registered employee placement company in Cameroon be a manager?
Yes.
Can a foreign national own 100% shares of an employee placement company in Cameroon?
Yes
What are the mandatory requirements for promoters wishing to register an employee placement company in Cameroon?
Promoters wishing to register an employee recruitment company in Cameroon must fulfil the following mandatory requirements;
- Must possess a valid Passport or National Identity Card.
- Must be of age 18 years and above.
- Must not be bankrupt from their country of origin.
- Must provide an authorizing document from the parent company if a subsidiary company to be registered in Cameroon.
- Must not suffer from insanity.
- Must possess good criminal records, which is evidenced by a non-crime certificate.
Can an employee recruitment company in Cameroon be registered but not operate?
Yes. If the company has not been granted the authorization from the Ministry in charge of employment.
What is the prove that an employee placement company registered in Cameroon is operational?
For an employee recruitment company registered in Cameroon to be fully operational, it must show proof of the following;
- A certificate of Incorporation
- An MO Form registration license
- A tax payer’s registration number
- A notarized lease agreement
- A location plan
- A certificate of non-indebtedness
- An attestation of Bank account creation
- A physical office location
- A matriculation number from the National Social Insurance Fund for the newly registered company in Cameroon
- A matriculation number per staff/worker from the National Social Insurance Fund
- An authorization from the ministry in charge of employment.
What information is required to register an employee placement company in Cameroon?
To register an employee placement company in Cameroon, the corporate attorney is enjoined by law to request some mandatory information from the company promoters/ founders. This information enables the registration the company in Cameroon to be successful irrespective of whether the founders/promoters are in Cameroon or abroad.
In accordance with section 262 of the Uniform Act relating to commercial companies and economic interest groups of the OHADA Law, the following information is required from the company founders;
- Name of company
- Form of company (Public Limited Company or Private Limited Company)
- Objectives of the company
- Copy of shareholder(s) identification documents
- Non-crime certificate
- Company startup capital
- Copy of identification document of company Manager or General Manager etc.
What documents have to be established by the corporate attorney? Legal assistance to register an employee placement company in Cameroon.
The corporate attorney is to establish the following documents which will be subject to registration;
- Memorandum and Articles of Association of the company
- Notarized statement of subscription and payment of shares
- Notarized certificate of appointment of company manager
- Declaration of Regularity and Conformity with the OHADA Law
- Notarized list of company shareholder (s) and company manager (s)
- Location sketch of business premises.
Documents delivered upon completion of the registration process
- A certificate of Incorporation
- An MO Form registration license
- A tax payer’s registration number
- A notarized lease agreement
- A location plan
- A certificate of non-indebtedness
What are the administrative bodies involved of the registration process?
- The Court of First Instance
- The Stamp Duty Office
- The Tax Office
- The Company Registration Office
- The Ministry in charge of employment.