The Short Answer
Use an Employer of Record (EOR) when you want to hire a small team in Cameroon quickly, test the market or staff a fixed-duration project. Open a subsidiary when you need to sign contracts and invoice customers locally, hold assets, or employ a large permanent workforce. Many companies do both in sequence: they start with an EOR and move their employees to their own entity once the business case is proven.
Side-by-Side Comparison
| Employer of Record | Subsidiary (e.g. SARL) | |
|---|---|---|
| Time to first hire | Usually 1–2 weeks | Several months: registration, bank account, tax and CNPS accounts |
| Legal employer | The EOR | Your company |
| Local company needed | No | Yes |
| Can invoice local customers | No | Yes |
| Payroll and compliance | Handled by the EOR | Your team or an outsourced provider |
| Exit | End the service agreement and contracts | Liquidate the company |
| Best for | 1–20 employees, market tests, projects | Long-term operations, large teams |
When an EOR Makes Sense
You are testing the market – Hire a country manager or a small sales team before committing to a legal entity.
You need people fast – A project, a tender or a new client contract cannot wait months.
Your team is small – The cost of running a local entity (accounting, tax filings, local directors) is hard to justify for a handful of employees.
You have no local revenue – If you are not invoicing Cameroonian customers, you may not need a local company at all.
When a Subsidiary Makes Sense
You will trade locally – Signing contracts with and invoicing Cameroonian customers requires a local entity.
You will hold assets – Offices, vehicles or equipment registered in your company's name.
You will employ many people – At scale, the per-employee EOR fee can exceed the cost of running your own entity.
Your sector requires it – Some regulated activities require a licensed local company.
Our Africa market entry strategy guide covers company formation options, from the SARL (minimum capital FCFA 100,000) to the SA, branch and representative office.
Risks to Weigh
With an EOR – Choose a provider that is itself a registered employer in Cameroon, not a reseller subcontracting to an unknown partner. Ask for its CNPS registration and how it handles terminations.
With a subsidiary – You carry all employer obligations directly, including monthly IRPP and CNPS filings and labour-law compliance. Errors lead to surcharges of 10% per month of delay on CNPS arrears.
With neither – Paying full-time staff as foreign contractors is the riskiest option; see contractor vs employee in Cameroon.
Moving From EOR to Subsidiary
When your entity is registered, your employees can be transferred to it. Plan the move so that length of service, leave balances and contract terms carry over. A provider that offers both EOR and PEO services can keep running payroll and HR for your new subsidiary, so nothing changes for the employees.
Frequently Asked Questions
Can an EOR employee work on a project for my company in Cameroon?
Yes. The employee works for you day to day; the EOR is the employer on paper and handles compliance.
Is an EOR more expensive than a subsidiary?
For a small team, usually not: you avoid setup costs, local accounting and the time it takes to register. For a large team, a subsidiary often becomes cheaper per employee. See the cost of employing someone in Cameroon.
Not sure which route fits your expansion? CDS HR offers both an Employer of Record service and market entry and company setup support. Book a free 30-minute consultation.