Doing business in Nigeria or anywhere in the world begins with the registration of business. The Corporate Affairs Commission(CAC) is the government agency in charge of the incorporation of companies in Nigeria. Although business registration in Nigeria has been simplified by CAC over the years. CAC online company registration has greatly increased the process by which a company can be registered in swiftly Nigeria. Subsequently, most payment for company registration such as CAC filing fees and stamp duty fees can now be processed online. Apart from having headquarters in Abuja, the CAC offices are located in almost every state’s capital in Nigeria. The procedure for company registration in Lagos Nigeria is also the same procedure to be followed in the headquarters and every other state in Nigeria. Unlike the United States of America where each state has its own company registry, the business registration in Nigeria is central and it can only be done with the CAC.
There are different types of company formation allowed under Nigeria’s company law. Therefore, several people seeking to do business in Nigeria, especially for the first time, often want to know how to register a company in Nigeria or how to register a business in Nigeria
Limited Liability Companies are the most widely used form of business enterprise in Nigeria. Private Limited Liability Company has several advantages, which include but limited to perpetual succession, limited liability, separate legal personality among others.
The procedure for foreign company registration in Nigeria is almost as the same as the procedure for domestic company registration for Nigerians except for a legal requirement that a company with foreign participation in Nigeria must be capitalized with the minimum of N10 Million.
A company is a legal entity and required to be duly incorporated. Company registration in Nigeria falls under the Companies and Allied Matters Act 2004 (CAMA). Corporate Affairs Commission is the sole agency of government responsible for incorporation of companies in Nigeria pursuant to provisions of CAMA.
Section 18 of the Companies and Allied Matters provides that it takes at least 2 persons to form a company. Section 246 of same Act mandates every company registered in Nigeria to have or maintain a minimum number of 2 directors.
Having regards to the above, it is very clear to state that a single person currently cannot form a company in Nigeria.
The procedure for company registration in Nigeria are as follows:
However, the cost of company registration in Nigeria depends on the number of shares capital of the company. The higher the share capital of a company, the higher the fee/ stamp duty payable to the government.
In conclusion, it is better to register a limited liability company as against other forms of companies as it holds several benefits and easy to register. More so, foreigners are allowed to fully own a company under the Nigerian law.
Finally, the entire process of company registration in Nigeria with CAC can be completed within 48 hours if all the necessary incorporation documents have been put in place.
Written by Corporate & Commercial Law Department at Resolution Law Firm, Nigeria