How to Set Up an Agricultural Cooperative in Cameroon

Cameroon's economic policy since independence in 1960 has always given a special place to the agricultural sector. Cameroonian authorities have long recognized that the path to economic development runs through agricultural development. This is because this activity has always been the main one in rural areas, which remain the areas most affected by low income levels and precarious living conditions. Any policy aimed at improving people's living conditions must go through increasing agricultural productivity. It's with this in mind that the Cameroonian government encourages young people to start businesses, set up farming operations, and so on. From now on, no more GICs (Common Initiative Groups) will be created in Cameroon - only cooperatives.

What is a cooperative?

A cooperative is a group of people who, in carrying out their activity, face problems or challenges, and who come together independently and voluntarily to create a business that is collectively owned and democratically managed. This cooperative is set up according to universally recognized cooperative values and principles.

Difference between a cooperative and other businesses

Since a cooperative is the legal form this new business takes, one might wonder how it differs from other businesses. The answer lies in the characteristics of this new type of company:

• Here, ownership is collective; subscribing to the share required to build up the capital gives you this status;
• Members are both owners and users of the cooperative. Indeed, as co-owners of your cooperative, you have a duty to do business with your cooperative so that it can thrive;
• At the General Assembly, decisions are made under the "one person, one vote" principle, instead of "one share, one vote" as in other types of companies.

Procedure for setting up a GIC / Cooperative in Cameroon

Step 1: Registration in the Register of Cooperative Societies and Common Initiative Groups

• Location: GIC/COOP Register of your locality (MINADER local office)
• Timeframe: 3 months
• Documents required:
  1. A stamped application at the current rate
  2. Three (3) copies of the bylaws
  3. A certified copy of an authorization, a prior compliance certificate, or any required document, specifying the fields of activity concerned
  4. Three (3) copies of the law and its implementing text, which are returned to the applicant after the registration certificate is issued
  5. The minutes of the founding meeting, stating the date and place it was held, and signed by the required number of founding members

For a Cooperative, it must indicate

1. 1. 1. 1. the resolution regarding the creation of the cooperative society, specifying:
            1. the date the founding meeting was held;
            2. the name and, if applicable, the trade name or acronym;
            3. the purpose and the economic activity branch(es);
            4. the territorial jurisdiction;
            5. the registered office and postal address.
         2. the resolution approving the bylaws and specifying:
            1. the terms for reciprocal commitments to activities;
            2. the terms for subscribing and paying up the share capital;
         3. the resolution electing the chairperson of the board of directors and the directors, indicating:
            1. for the chairperson: full name, occupation, and home address;
            2. for the other directors, in addition to the information required above, their roles as needed.
         4. the resolution electing the members of the supervisory committee, stating their full name, occupation, and home address;
         5. the resolution appointing the outside individual responsible for auditing the accounts, or the organization chosen for this purpose, specifying their name or company name and home or registered office address, as applicable;
         6. and, for savings and credit cooperative societies, the board of directors' resolution appointing the members of the credit committee.

(removed for GICs)

1. 1. 1. 1. Total cost: 0 CFA francs in fees + stamps

Step 2: Tax registration (Taxpayer card)

• Location: Tax Center
• Timeframe: Immediate
• Documents required:
  1. Application addressed to the head of the Tax Center
  2. Registration certificate from the Register of Cooperative Societies and Common Initiative Groups
  3. Bylaws
  4. Location certificate and map
  5. Fee payment receipt
• Total cost: 1,500 CFA francs in fees + stamps.

Check the 2011 General Tax Code, Art C11, para. 20, to find out whether your GIC/COOP is exempt from business license tax.

Additional steps: CNPS, Labor Inspectorate, Specific authorizations.

CNPS Registration

This must be done as soon as you hire your first employee.

• Location: CNPS office in your locality
• Timeframe:
• Documents required:
  1. Fill out a "Registration Application" on the official form
  2. Registration certificate from the Register of Cooperative Societies and Common Initiative Groups
  3. Bylaws
  4. Business license
  5. Taxpayer card
  6. Location map
  7. List of staff (permanent and temporary)
  8. Lease agreement for employers renting their premises
• Total cost: 0 CFA francs in fees + stamps.

Declaration to the Labor Inspectorate

• Location: Labor Inspectorate of your locality
• Timeframe: Immediate
• Documents required:
  1. Declaration letter

Total cost: 0 CFA francs in fees + stamps.

Specific authorizations

Depending on your company's activity, other authorizations may be required for you to operate. For example, COBAC and MINFI approvals for Savings and Credit Cooperatives.

This information is provided for guidance only and may be subject to updates.