REGISTRATION OF A CATEGORY 1 MICROFINANCE IN CAMEROON

Microfinances are governed by Regulation No. 01/00/CEMAC/UMAC/COBAC of January 2002. According to this regulation, a Micro-finance is an activity carried out by accredited entities that do not have the status of a Bank or Finance establishment.

ACCOMPLISH THE TASK OF REGISTERING A COMPANY

Any persons interested to register and operate a micro-finance institution in Cameroon must, first of all, have a company registered with the objective to provide the services of a Micro-Finance Institution. This is because the company registration documents form part of the documents required in registering a Micro-Finance institution in Cameroon.

Micro-Finance institutions are divided into 3 categories and each category has its specific way of collecting funds in accordance with Article 5 of Regulation No. 01/02/CEMAC/UMAC/COBAC of April 13th 2002. The legal form of each category is as prescribed by the Banking Commission of Central Africa is illustrated below;

• Category 1/Class one Micro-Finance Institutions are those which have members and accept deposit from and grant loans only to members. This category includes associations, cooperatives and credit unions,
• Category 2/Class two Micro-Finance Institutions are those which accept deposits from members and third parties(customers). This category groups limited liability companies that function like micro banks, and
• Category 3/Class three Micro-Finance Institutions are those engaged in lending only and they do not collect savings and deposits. They include micro-credit and project financing institutions.

LIST OF DOCUMENTS FOR APPLICATION FOR A CATEGORY I MFI ACCREDITATION

The application file for accreditation must contain information relating to the establishment itself, members of the cooperative, administrations as well as managers and auditors respectively.

After the accomplishments step 1 by the person(s) desirous to register a micro-finance in Cameroon, the applicant will have to furnish the Attorney with certain documents to be used in support of the application. These documents include:

•       A form providing general information on the MFI
•       A copy of the by-laws of the MFI authenticated by a Notary
•  A copy of the minutes of the constituent General assembly by authenticated Notary
•    Registration Certificate of the institution as a cooperative society
•       The list of affiliated institutions detailing the adhesion number of each of the members, the nominal value of shares detained subscribed, and effectively liberated
•       Information on the affiliated institutions
•       A declaration from the notary on the subscription and payment of equity. solidarity fund and adhesion rights
•       The report of the auditor on all contributions in kind
•       Bank statement on equity, adhesion rights, and solidarity fund
•       Composition of the board of administrators differentiating executive administors and independent administrators
•       Information on designated board members in line with the present regulation
•       The list and composition of the specialized committees that will be instituted within the board of administrators and their respective roles
•       Information on the designated general manager and assistant general manager respectively in line with the present regulation
•       Information on appointed auditors in line with the regulations
•       The list and competence of specialized committees created to assist the general manager in the day-to-day running of the Microfinance and their respective attributions
•       The tentative organizational chart containing the information defined in the present regulation
•       A signed adhesion convention between the umbrella organ and the affiliated institution, precisely the rights, and obligations of the parties, contribution to the umbrella organ, risk coverage by the umbrella organ, refinancing agreements
•       A three-year tentative draft business plan comprising a description of the project strategic analysis of the market, commercial strategy, financial projections, organizational and implantation forecast, etc
•       Detailed technical, financial, and human resources envisaged
•       Balance sheets and projected results for the three years
•       Draft procedural manuals concerning notably internal control mechanisms, risk management, plan for continuity of activity, fight against money laundry and financing terrorism, and the charter on the governance of enterprises
•       Technical assistance contract with a renowned partner as the case may be.

The estimated for the grant of license is 2 months after the successful submission of all documents to the various regulatory bodies in charge of the process.

REGISTRATION OF A BRAND BEFORE OAPI
SIMPLIFIED RECOVERY PROCEDURE

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