HOW TO REGISTER A BUSINESS IN NIGERIA
Business/ company registration in Nigeria is the first step required to commence a business in Nigeria. The commission in charge of company regulations is the Corporate Affairs Commission (CAC), which was established by virtue of the Companies and Allied Matters Act (CAMA) to regulate the formations and operations of companies in Nigeria.
A private company is any company having the liability of its members limited by the memorandum and articles of association to the amount unpaid on the shares respectively held by them or a company having the liability of its members limited by the memorandum of association to such amount as the members undertake to contribute to the assets of the company in the event of its being wound up. The private company limited by shares, also known in other jurisdictions like the United States as LLC is the most suitable form of commencing business in Nigeria.
There have been various developments with respect to company registration in Nigeria in recent years. Company formation can now be completed online and the electronic certificates are now issued by CAC in lieu of the paper certificates.
Requirements for Registration of Company in Nigeria
Below are the current requirements an applicant must provide to commence the registration of a company in Nigeria:
- The registered address of the proposed company
- Email and phone number of the proposed company
- Identification document of the directors and shareholders.
- Approval note of name reservation from CAC
- Director(s) & shareholders(s) full names, residential address, occupation and date of birth.
- Objects of the company
- Statutory fees and Stamp duty
- Incorporation certificate and company resolution where another registered company (either local or foreign) will be a shareholder or subscriber to the proposed company.
For registration of the company, the below are the steps required:
- Submission of two desired company names for the search:
- Complete the Pre-registration form and statement of share capital
- Pay the Stamp duty and filing Fee
- Uploading relevant documents at the CAC portal
- Submission of registration application online.
- Where the registration is approved, the electronic incorporation certificates together with the Tax Identification Number and other incorporation documents will be issued by the CAC.
- Lastly, the applicant can download the Certificate, MEMART and Application Status online
Finally, the CAC registration must be carried out strictly in compliance with the authorized share capital required for each business. For instance, a company intending to engage in a freight forwarding business must have a minimum of Five Million Naira authorized share capital, and where any foreigner is to be involved in the proposed company, the authorized share capital must not be less than Ten Million Naira. A foreign-owned company is also mandated to have a local address of service and appoint a company secretary during registration.
By Corporate & Commercial Law Department at Resolution Law Firm
Phone: 08099223322 (WhatsApp)