The Ultimate Guide to Buying Shares in Companies in Cameroon under OHADA Business Law

January 2, 2024

If you're considering investing in Cameroon's vibrant business landscape by buying shares in companies, it's crucial to understand the legal framework that governs such transactions.

In this article, we will explore the fundamentals and key considerations for investing in shares under the OHADA business law in Cameroon.

From understanding the legal framework to practical tips, we'll help you navigate the process with confidence.

1. Introduction to OHADA Business Law

OHADA (Organization for the Harmonization of Business Law in Africa) is a Pan-African organization that aims to harmonize business laws across member states, including Cameroon.
Understanding its legal framework is essential for anyone intending to buy shares in companies in Cameroon and around the CEMAC region.
OHADA provides clear guidelines and protections for both local and foreign investors.

2. Research and Due Diligence

Before making any investment, thorough research and due diligence are critical. Identify potential target companies that align with your investment objectives, such as sector, asset, profitability, management, and growth prospects.
Gather reliable information through official sources and consult with a corporate lawyer in Cameroon , accountants, or investment professionals.

3. Legal Requirements and Procedures

Under OHADA business law, certain procedures must be followed when buying shares in Cameroon. These include:

a) Share Purchase Agreement: A legally binding document that establishes the terms and conditions of the share purchase, including the number of shares, price, payment terms, and any other relevant clauses.

b) Share Transfer Forms: These forms serve as documentary evidence of the share transfer and should be filed with the appropriate authorities.

c) Notarization and Registration: All share purchase agreements and share transfer forms need to be notarized by a licensed notary and registered with the relevant commercial registry.

d) Payment and Funds Transfer: Ensure that the agreed payment for shares is made through legal channels, adhering to anti-money laundering regulations.

4. Due Diligence on the Target Company

Conduct comprehensive due diligence on the target company to evaluate its financial health, legal compliance, reputation, and any potential risks or challenges.
Engage professional advisors to help you assess the company's audited financial statements, tax compliance, contracts, and any pending legal issues.

5. Seek Legal Expertise

Given the complexities of buying shares, seeking legal expertise in Cameroon is crucial.
Consult an experienced lawyer in Cameroon specialized in the OHADA business law to guide you through the process and ensure compliance with local regulations.
They can review contracts, assist with due diligence, and provide valuable advice to protect your interests.

6. Shareholder Rights and Protections

As a shareholder, understanding your rights and protections is essential. OHADA law ensures that shareholders have the right to information, dividends, attendance and voting in general meetings, and protection from oppressive practices.
Familiarize yourself with the legal framework surrounding shareholder rights to safeguard your investment.

7. Tax Implications

Take into account the tax implications associated with buying shares in Cameroon. Consult tax experts to understand capital gains taxes, dividend taxes, and any other relevant tax obligations to avoid any surprises.

8. Conclusion

Buying shares in companies in Cameroon under the OHADA business law offers exciting investment opportunities.
By conducting thorough research, understanding legal requirements, and seeking expert advice, you can make informed decisions and protect your interests.
With its harmonized legal framework, Cameroon provides a conducive environment for investment and encourages both domestic and foreign
participation in its vibrant business landscape.


9. The Role of Neneng Law Office.

Looking for a renowned business and corporate law firm in Cameroon with qualified attorneys? The Neneng Law Office is the place to go.
We are committed to providing high-quality legal services to our clients based on our years of experience and expertise.
Whether you need assistance registering a company in Cameroon, buying shares in a company in Cameroon, due diligence and legal advisory, or any other legal issue, our team of qualified corporate lawyers in Cameroon are ready to assist you.
Client satisfaction is Neneng Law Office's primary priority, with personalized attention and appropriate solutions for each case.
You may count on our professionalism and extensive knowledgeof the OHADA business law and the business legal framework in Cameroon. For anyof your legal needs, contact Neneng Law Office now.

In need of a lawyer?
Get in touch