Regarded as the Federal Republic of Nigeria, the ground serves to be an excellent business platform.
Surrounded by the Gulf of Guinea, the oil-rich nation has been exponentially growing to grab the attention of the international audience at ease and increase the flow of income in the country.
The 12th largest producer of oil globally, and the 8th largest exporter, the government of Nigeria has been building numerous opportunities to uplift the non-oil segment.
Today, company registration in Nigeria has become an easy process compared to the earlier days. As a result, the concept of entrepreneurship has become inevitable, and thus, the ground has numerous business opportunities lined up for the budding and experienced business minds.
This article highlights the core essentials that a business owner should know before registering a company in Nigeria. Let' gets started!
Company formation in Nigeria has become a trend among business investors as an LLC gets incorporated with the minimum presence of two shareholders and two directors.
Setting up a Nigerian company has turned out to be an easy move as the laws have been further simplified and can be efficiently completed under the guidance of a certified business expert.
Free zones in Nigeria provide the opportunity to start a business at an affordable rate and rewarding benefits.
Business owners need to obtain a specific business license that will help them carry out the activities at ease.
Nigeria has revamped the corporate law for businesses to step in and operate their business activities at ease.
The Nigerian Company Law, the Companies and Allied Matters Act (CAMA) amended in 2020, got implemented in January 2021. The Corporate Affairs Commission (CAC) is the ultimate governing body in charge of company registration in Nigeria.
Coming to the incorporation process, a business investor has the flexibility to select one among the following options:
A single person owns a sole trader company and is the simplest form of business entity, not mandatorily requiring a company registration.
In such a company, the sole trader is personally responsible for all aspects of the business and has unlimited liability to all debts and obligations.
A private limited company is an entity separate from its shareholders, who enjoy limited liability, i.e., their possessions remain independent. Their risk is reduced to only the money they have invested in the company. The requirements for incorporating a private limited company in Nigeria are:
Unlike a private limited one, a public company can publicly list and sell its shares to the public.
The cost of running a public limited company is considerably higher than that of a private limited liability company. Therefore, a public limited company is better suited for large organizations.
A guarantee company is not meant for profit purposes and is set up generally by charitable organizations. Such a company does not have a share capital, and the members do not own the company, nor do they receive any profits. They also have no claim to the company's assets.
All income generated by a guaranteed company is utilized to cover its operating costs and achieve its objectives.
Considering the company registration in Nigeria, the following documents are to be kept handy:
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The very first task is to design the company name or trade name. Although it sounds easy, one has to be very careful regarding choosing a business name.
Any investor needs to take care that the selected business name shouldn't be offensive, nor should it violate the nation's rules.
Registering the details of shareholders and investors is the next step. Here, the core details are to be submitted along with the identity and address proof.
Up next, you need to submit the required documents to the relevant authorities. Once the documents get approved, the registration process gets complete, and the business license will be issued etc.
Do make the necessary payments to complete the process accordingly and get your Certificate of Incorporation.
After the business is successfully incorporated, make sure to implement the core grounds that involve: Opening a corporate bank account, Accounting and Bookkeeping, Audit, Corporate Secretarial and IP services to strengthen the core pillars of your business.
Thus, you have got an overall idea of the company incorporation in Nigeria. Now, you need to follow the core steps in detail, and it is recommended to take the help of an expert to implement the same.
At Business Setup Worldwide, we take care of the business essentials required at the initial stage of company formation.
Our business experts are here with industry knowledge and solid experience and can help you to start your business in Nigeria at ease.
For more information, feel free to contact us today-we'd be glad to assist!