- Posted by Kindness
- On February 11, 2021
HOW TO SETUP AND REGISTER A COMPANY IN NIGERIA
The setup and management of a business in Nigeria is regulated primarily by the Companies and Allied Matters Act (CAMA) 2020.
To successfully set up a company in Nigeria you need to put a number of things in place and this is what this article is going to address.
So what are these things you need to put in place?
- BE CLEAR ABOUT THE NATURE OF YOUR BUSINESS
It is important to be clear the nature of your business,
What services do you wish to render, where, how and to whom will these services be rendered?
Being clear about the nature of your services is very important because it will aid you while choosing the right structure, it will also be a key factor in deciding your startup capital.
- CHOOSE THE RIGHT LEGAL STRUCTURE
To setup a company in Nigeria you need to choose the proper legal structure suitable for your business, choosing the right structure is very important because structure determines;
- The taxes and returns your business will pay every financial year.
- Structure also determines the financial capacity of your business and this will affect your ability to access financial aids, gain investors and other business opportunities.
- Structures also determine the nature and limit of transactions your business can perform.
- Structure also determines your legal liabilities and responsibilities.
It is very important to contact a business lawyer before making your decision on structuring, this is so you can have detailed and professional advice.
- REGISTER THE BUSINESS OR COMPANY WITH THE CORPORATE AFFAIRS COMMISSION.
Registering your company or business with the Corporate Affairs Commission is the first step towards gaining legitimacy as a business organization in Nigeria. Without your incorporation documents it will be impossible to have government patronage, an unregistered business is not recognized as a legal entity in Nigeria.
WHAT ARE THE REQUIREMENTS FOR COMPANY REGISTRATION IN NIGERIA?
- Choose a legally compliant name; kindly see my article on this blog, titled “how to choose a legally compliant name for your businesses.
- Write down your share capital and how these shares will be allotted to the proposed shareholders of the company.
- Choose your directors, shareholders and provide the commission with valid details of these individuals.
- Submit your company’s memorandum of understanding.
- Choose your company secretary and provide his/her details accordingly
Businesses that choose other structuring style will not need to provide details of shareholding and share allotment.
Finally it is important to speak to your lawyer to follow you through this journey to avoid costly mistakes.
- Nduba Kindness Esq.
Kindness Nduba is a business and intellectual property lawyer she is the founder bizreg.ng and the managing consultant Bizreg legal and consulting services (BLCS).
To make further inquiries on setting up a company in Nigeria
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