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HOW TO REGISTER A BUSINESS IN NIGERIA

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HOW TO REGISTER A BUSINESS IN NIGERIA

The first step required from every person or entity seeking to do a business in Nigeria is registering a company in Nigeria.

An individual seeking to engage in a little business venture may also register a Business Name in Nigeria. However, it is important to note that a Business Name cannot acquire a separate legal personality, and the risks and liabilities of any failed venture registered as Business Name in Nigeria may also be extended to its owner. A Business Name is not considered as a company under Nigeria Law.

It therefore follows, that the best means of doing business in Nigeria is through a company’s registration, since a company automatically acquires a separate legal personality immediately after its formation.

Meanwhile, the Corporate Affairs Commission (CAC) is the governmental body responsible for registering companies in Nigeria.

  • TYPES OF COMPANIES

Under Section 21 Companies and Allied Matters Act, there are six types of companies that can be registered in Nigeria. These are:

  • Private company limited by shares.
  • Public company limited by shares.
  • Private company limited by guarantee.
  • Public company limited by guarantee.
  • Private unlimited company.
  • Public unlimited company.

PRIVATE COMPANY LIMITED BY SHARES

Although there are different types of corporations that can be formed in Nigeria, the most used one among them are private company limited by shares.

The private company limited is most sought after because it most suitable and appropriate form of company by which a business can be formed by more than two persons with a limited risk. The simplicity of forming a private company limited by shares also couple to its efficiency to be used as purpose vehicle for business within Nigeria and every other part of the world.

Subject to the provisions of the Nigerian Companies And Allied Matters Act (CAMA), every private company must be comprises of minimum of two members (shareholders) and two directors. It is not mandatory for the directors of a private company to also own or hold share from the same company. An infant or a bankrupted person is not qualified to be a director of a company.

Additionally, under Nigerian law, a foreigner can own a

 

  • A GUIDE TO NIGERIAN BUSINESS FORMATIO

The following are the requirements needed for the incorporation of a company.

  • Proposed Name of the Company (2Names)
  • Nature of Principal business the company will be engaged in
  • The Registered Office Address of the Company
  • Type of Company to be incorporated : (Private or Public Company)
  • Particulars of the 1st Directors (minimum of 2 persons above 18years ) :
  • (Name, Date of Birth, Gender, Phone Number, Email Address, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport), Percentage of shares to be held: if the director is also a shareholder).
  • Particulars of Shareholders (minimum of 2 persons) :
  • (Name, Date of Birth, Gender, Phone Number, Email Address, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport), Percentage of shares to be held).
  • Particulars of the Company Secretary (He/she could be an individual or a corporate body)
  • (Name, Date of Birth, Gender, Phone Number, Email Address, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport),).
  • Particulars of alien participants, if any.
  • (Name, Date of Birth, Gender, Phone Number, Email Address, Nationality, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport).

 

  • CONCLUSION

The Corporate Affairs Commission through several efforts and in line with the government’s directives has simplified a means by which a business can be registered in Nigeria.

Incorporation of business can now be commenced and processed online from the availability search to the registration level through the website of the Nigerian’s Corporate Affairs Commission (CAC).

The CAC has made an audacious attempt to cut off or reduce the influence of third party in company’s registration in Nigeria. However, an incorporation of a company can still not be concluded unless an accredited agent has duly certified such application for registration.

Finally, a company incorporation expert may also help to draft the objects of the new company proposed for registration and properly put the entire application together.

 

Written by Corporate & Commercial Law Unit at Resolution Law Firm

Tel:     +2348030478888

Email: info@resolutionlawng.com

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