How to create a business for a member of the diaspora?
The African continent is now considered the most important job market in the world. Nevertheless, the development of Africa implies to have the necessary skills, often pointed. To encourage the African diaspora to set up their business in their country of origin, some African states have put in place incentives, like Cameroon and the DiaMed project bringing together Algeria, Morocco and Tunisia. address specifically to the diaspora wishing to start a business in their country of origin.
How to start a business in Cameroon?
There are two procedures for setting up a business in Cameroon: on the one hand, the traditional procedure that involves the entrepreneur to address each administration concerned by the business creation process and, on the other hand, the simplified procedure intended to encourage both the diaspora and local entrepreneurs to create their structure. This procedure is part of the CFCE (Business Creation Formalities Centers).
It is better to opt for this second option since all the administrative procedures to be carried out are grouped together in one and the same place. Thanks to the CFCEs, the formalities related to the creation of companies have gone from 90 days to 72 hours.
Whether it is a sole proprietorship or a company (individual or collective), the procedure differs depending on the passport of the entrepreneur (Cameroonian or foreign). The differences mainly concern the parts to be supplied.
The creation of a company involves many taxes such as the tax which is determined by turnover, the corporate tax of 35%, VAT 19.25%, income tax, 5 , 5%, business tax corresponding to 15% of turnover.
As part of the law of April 18, 2013, No. 2013/004 which aims to set incentives for private investment in Cameroon, the Cameroonian state has implemented several measures to encourage entrepreneurship. The latter come on the one hand from state institutions and on the other hand from international partners such as the European Development Fund, the Center for Industrial Development, the European Investment Bank, which make funds available to local actors and the diaspora with promising projects as well as training in business creation and financial plan templates for future business leaders.
For its part, the Cameroonian government made the decision in 2016 to reduce the minimum amount required for the creation of a limited liability company from 1 000 000 FCFA (1 500 euros) to 100 000 FCFA (150 euros). . Moreover, depending on the turnover generated during the first year of operation, tax exemptions may be considered.
How to start a business in Algeria, Tunisia or Morocco?
The DiaMed scheme aims to support project leaders from the diaspora living in Europe who want to set up companies in their home countries. The latter benefit from personalized support, totally free, upstream, from Europe and on the spot, in the Maghreb.
The main objective of this support is to secure the financial investments of future entrepreneurs by providing them with administrative support and designing their business plans. In addition, this initiative strives to connect future entrepreneurs with key players in the industry in which they wish to invest.
This device aims to develop the entrepreneurial spirit through training, coaching, coaching, etc.
Becoming an entrepreneur can be very complex. Indeed, it is not easy to find one’s way around the different statuses of companies and the social or tax implications, for example, and the multiple administrative procedures to be carried out. Nevertheless, some African governments, with a view to encouraging the return of the diaspora to their host country while encouraging people to embark on the entrepreneurial adventure, have managed to attract many “repats”. Before installation, it is essential to find out about the incentives provided by the host country to successfully start a business.