Understanding the Types of Companies under OHADA Uniform Acts

March 13, 2024

Do you want to start a business in Cameroon or another OHADA member country? Understanding the various types of organizations covered by the OHADA Uniform Acts is critical for making informed decisions. In this article, we will look at the four primary categories of companies that are recognized under OHADA law, as well as their distinguishing qualities.

1. Société Anonyme (SA) – Public Limited Company

The Société Anonyme (SA) is a type of company that is best suited for large-scale operations and requires at least two shareholders and at least three members of its board of directors.

This sort of company is ideal for businesses that demand a large amount of cash and provide shareholders with limited liability.

SA companies are also obligated to issue securities to the public and must adhere to strict laws to protect investors' interests.

2. Société à Responsabilité Limitée (SARL) –Limited Liability Company

The Société à Responsabilité Limitée (SARL) is the most popular type of company among OHADA member countries.

This type of company is ideal for small to medium-sized businesses and requires at least one or two shareholders.

SARL companies offer limited liability to its owners and have less strict regulatory requirements than SA companies. SARL companies have a flexible structure, making them ideal for family-owned businesses or entrepreneurs wishing to launch a new company.

3. Société en Nom Collectif (SNC) – General Partnership

The Société en Nom Collectif (SNC) is a type of company in which partners share joint and several liability for the company's obligations.

This sort of company is frequently founded by professionals in the same industry, such as lawyers or accountants, who want to work together and share profits.
SNC companies have no minimum capital requirements and are managed by the partnership agreement between the partners.

While SNC companies provide the benefit of shared decision-making and management, it is critical to recognize the hazards of unlimited responsibility.

4. Société en Commandite Simple (SCS) – Limited Partnership

The Société en Commandite Simple (SCS) is a type of business that has at least one general partner and one limited partner.
The general partner is responsible for the operation of the business and has unlimited liability, whereas the limited partner's liability is limited to their investment in the company.
SCS businesses are frequently founded by professionals or entrepreneurs seeking to attract funds from outside investors while maintaining managerial control.

Finally, understanding the various types of companies described in the OHADA Uniform Acts is critical for making informed business decisions.

Whether you want to start a large-scale operation, a small to medium-sized company, as or collaborate with partners, there is a company type to meet your demands.
It is critical to seek professional guidance and understand the individual regulations and requirements of the OHADA member country where you wish to do business.

By choosing the appropriate company type, you can lay the groundwork for your company's success and growth under the OHADA jurisdiction.

5.The Role of Neneng Law Office

Looking for a reputable law firm in Cameroon to help you navigate the business environment? Neneng Law Office is the place to go.
We are committed to offering our clients with high-quality legal services based on our years of experience and competence.
Whether you need help in business legal advisory, business registration, business legal due diligences or any other legal concern, our team of qualified lawyers are ready to help you navigate the legal system's complexities.
Client satisfaction is Neneng Law Office's top focus, with customized attention and tailored solutions for every case.
You may rely on our professionalism and deep knowledge of the business and legal industry in Cameroon. For any of your legal needs, contact Neneng Law Office now.

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