If you’re thinking about starting a business in Cameroon, there’s a question you can’t escape: “Should I register as an Enterprise or as a SARL?”

Many people rush into registration without understanding the difference. Others ask friends, neighbours, or Facebook groups — and get ten different answers. The truth is, the best choice depends on you, your goals, your level of risk, and how serious you want your company to look.

Let’s break it down in simple, real-life terms.

What Is an Enterprise?

An Enterprise (sole proprietorship) is the simplest form of business in Cameroon. It’s fast, cheap, and very easy to register. But simplicity comes with limitations.

What it really means:

You and the business are the same person.

• If the business owes money, YOU owe money.
• If the business is sued, YOU are sued.
• If the business collapses, your personal belongings are exposed.

There is no separation between your personal assets and the business assets.

Who chooses this option?

• Small traders
• Freelancers
• Solo service providers
• New entrepreneurs testing the market
• People who want something simple and low-cost

It’s perfect for starting quickly… but not ideal for growing something big.

What Is a SARL?

A SARL (Société à Responsabilité Limitée) is a Private Limited Company. It takes more effort to set up, but it gives you structure, credibility, and protection.

What it really means:

You and the company are not the same person.

If the company owes money, only the company’s assets are affected — your house, car, or land remain safe. That is why the law calls it a limited liability company.

A SARL also has:

• shareholders
• an authorized capital
• a manager
• official documents (Articles & Memorandum of Association)

And yes, it looks more serious in the eyes of banks, partners, and clients.

Who chooses this option?

• Entrepreneurs who want to scale
• Businesses that deal with corporate clients
• Anyone seeking investors or contracts
• Businesses that want credibility from day one
• Anyone who doesn’t want personal assets exposed

If you’re thinking long-term, a private limited liability company (SARL) is usually the smarter move.

The Key Differences

1. Risk & Responsibility

Enterprise: If your business incurs debt, it becomes your personal debt.
SARL: You are protected. Losses are limited to the company’s assets.

2. Credibility

Enterprise: Good for small operations; not always trusted for big deals.
SARL: Looks official, structured, and reliable.

3. Growth Potential

Enterprise: You alone. Expansion is tough.
SARL: You can bring in partners, investors, and raise capital.

4. Taxation

Both fall under the General Tax Code, but a SARL often opens the door to better reporting, clearer financial statements, and more organised operations.

5. Succession

Enterprise: If the owner dies, the business dies or transfers with complications.
SARL: The company continues; shares can be transferred smoothly.

So… Which One Should You Choose?

Here is the honest, practical rule of thumb:

Choose an Enterprise if:

• You’re starting something small
• You just want to test an idea
• You want to spend the least amount possible
• You’re okay running the business alone
• Your risk is low and your liabilities are small

Choose a SARL if:

• You want to build a serious business
• You want to protect your personal assets
• You want to apply for contracts, tenders, or funding
• You plan to grow and bring in partners
• You want credibility when dealing with banks or clients

In simple terms:
Enterprise is for starting.
SARL is for building.

What Most People Don’t Realize

Many entrepreneurs register as an Enterprise because it’s cheap — then regret it when opportunities require a SARL. They end up spending more time and money transforming later.

On the other hand, people who start as a SARL often enjoy peace of mind. They know their personal property is safe. They know their structure is respected. And they know they can grow without restarting everything.

How We Help You Decide

At OpenHub Consulting, we guide you based on:

• the nature of your activity
• your growth plan
• your financial risk
• your target market
• your long-term goals

We do not just register businesses — we help you choose the right foundation, so you don’t regret it later.

If you’re unsure whether to choose an Enterprise or a SARL, let’s talk. One conversation can save you years of mistakes.