Paused Operations vs Cessation of Activities: A Difference Many Businesses Learn Too Late

In Cameroon, many business owners believe that once they stop operating, everything stops with it — taxes, declarations, obligations, pressure.
That belief is understandable. It’s also one of the most expensive misunderstandings in business compliance.

There is a big difference between pausing operations and officially declaring cessation of activities. The General Tax Code is very clear on this point, but most entrepreneurs are never told — until penalties show up.

Let’s slow down and clarify this properly.

What Does “Paused Operations” Really Mean?

Paused operations is what most business owners think they are doing.

You stop selling.
You close the office.
You pause contracts.
You tell yourself, “Let me breathe first.”

But here’s the uncomfortable truth: paused operations do not exist in the eyes of the tax administration.

If your business is registered and you have not formally declared cessation, the tax authorities still consider you active. Silence is not inactivity. It is simply non-declaration.

Under the Cameroon General Tax Code, a registered business remains subject to its obligations until the administration is officially informed otherwise. That includes:

• Filing Statistical and Tax Returns
• Submitting periodic declarations (where applicable)
• Maintaining accounting records
• Being eligible for penalties if obligations are not met

So even if your shop has been closed for months, even if no transaction happened, the tax system still expects you to report.

This is why many business owners are shocked when, years later, they are asked to “regularise” several years of filings — for a business they thought was dormant.

What Is Cessation of Activities?

Cessation of activities is not a feeling.
It is a formal legal and tax declaration.

When you declare cessation, you are officially informing the tax administration that your business has stopped operating as of a specific date. Once this is properly done and accepted, your recurring tax obligations stop from that date forward.

But cessation is not automatic. It must be declared. And it must be declared correctly.

The General Tax Code provides for cessation of activities as a recognised event, but it also sets conditions. You may be required to:

• File final tax returns
• Settle outstanding liabilities
• Declare the effective date of cessation
• Submit supporting documents

Only after this process is completed does the administration stop treating your business as active.

Can You Stop (Cessation) and Restart Later?

This is one of the most important questions — and the answer requires honesty.

Yes, you can restart later. But cessation is not a pause button.

Declaring cessation means the business, as it exists, is closed for tax purposes. Restarting later often requires fresh steps: reactivation, new registration processes, or updates depending on how long the cessation lasted and what changed.

This is why cessation should never be done casually or emotionally.

Some people declare cessation when they are simply tired, overwhelmed, or temporarily stuck — only to regret it later when opportunities arise.

Others refuse to declare cessation because they “might come back”, and end up accumulating years of penalties for a business that never operated again.

Both extremes are costly.

The Real Question You Should Ask Yourself

The real question is not: “Should I stop?”
It is: “What is the reality of my situation right now?”

If your business is temporarily inactive but you plan to resume soon, the right approach may be to continue filing correctly as a non-active business, rather than declaring cessation.

If the business is truly closed with no clear intention of resuming, then formal cessation protects you from future liabilities.

The mistake most people make is doing neither — no activity, no filing, no declaration. That is where problems grow quietly.

Read Also: My Business Is Small, Taxes Don’t Apply to Me Yet

Why This Matters More Than You Think

Tax compliance is not just about money. It affects your credibility, your ability to restart cleanly, your access to documents, and even your peace of mind.

Many entrepreneurs only face this issue when they need:

• A tax clearance
• A business attestation
• A contract or partnership
• A loan or investment

By then, past “silence” becomes a problem they must pay to fix.

How OpenHub Consulting Helps You Decide Correctly

At OpenHub Consulting, we don’t rush people into decisions. Our work is not just to file papers, but to help business owners think clearly.

We help you:

• Understand whether your business is legally considered active
• Decide between continued compliance or formal cessation
• Handle declarations properly, without unnecessary exposure
• Prepare for future reactivation if needed

Sometimes, the smartest move is not stopping — it’s structuring better.
Other times, the healthiest move is closing cleanly and restarting later, without baggage.

Final Thought

Business is not a straight line. Pauses happen. Fatigue happens. Reality hits.

But the tax system does not operate on emotions or intentions — it operates on declarations.

Paused operations exist in your mind.
Cessation of activities exists in law.

Knowing the difference is not just about compliance.
It is about protecting your future choices.

If you’re unsure where your business truly stands today, don’t guess.
Clarity now is always cheaper than correction later.