How to Register a company in Nigeria [Introduction]
Registering a company as a legal entity with distinct succession is the very first step a party or parties seeking to do business in Nigeria should take towards establishing a legal business entity for their business needs. In Nigeria, the Corporate Affairs Commission is the agency that regulates business affairs and registers business vehicles in Nigeria. In this guide, we will walk you through the necessary steps to take to incorporate your limited liability company to begin operations in Nigeria.
Reasons to register a company in Nigeria
Companies are the most widely used business organization vehicle worldwide. They are popular business vehicles in Nigeria as well due to numerous reasons that make them more attractive than other business types within Nigeria. There are certain advantages which companies have over other types of business organizations, in Nigeria. Advantages in this sense are different from the features of company when compared to other business organizations. These advantages are:
- Perpetual succession: a company once incorporated, enjoys perpetual succession. In partnership, when one of two partners dies, that is the end of the partnership. For company where shareholders die, other persons can take over the shares of the deceased shareholders of the company.
- Limited liability: when it is a company that is either limited by shares or guarantee, the liabilities of its members are thus limited. For sole proprietorship [Business Names] the owners have unlimited liability.
- Investors for a company: investors invest in a company more than in any sole proprietorship and partnership.
- Availability of funds: Deposit Money Banks [DMBs] and other loan companies prefer to lend securitized loans to companies over individuals operating sole proprietorship or partnership structures.
Below are the steps a business owner can take to get their company incorporated in Nigeria through CAC-accredited agents and Firms in Nigeria. It is worthy to note that individuals can, on their own, undertake their company registration by themselves on the CRP portal but it is generally [more] advisable to enlist the services of accredited agents [like our lawyers at Kabbiz Legal & Advisory] to help with incorporation in order to avoid errors on the portal. That pointed out, the underlisted steps are to be taken to register a company in Nigeria.
Requirements Checklist to register a company in Nigeria
- Choose proposed company name[s]. For every new company to be registered in Nigeria the applicant is required to submit two names to the Corporate Affairs Commission for consideration. Thus, an applicant should choose two names for their proposed company registration, in order of preference. You should be careful to choose a name which you feel aligns with the type of business operations you want to undertake in Nigeria and further, that the name complies with CAC name guidelines.
- Particulars of first directors. Under the new CAC operating guidelines, every company must, at incorporation have a minimum of one person that will be the director of the company at registration. The particulars of each director required includes: name, address, passport photograph, signature, valid Government-issued identification document [Passport, NIN card, Driver’s Licence], address, telephone number, email address, age, gender.
- Particulars of members of the company. Each new company upon registration in Nigeria requires a minimum of one member to subscribe to the shares of the company. In other words, CAC now allows for one-member companies in Nigeria. You can elect to have many shareholders in the company, though, or as small a number as you feel is necessary.
- Particulars of address of the Company. You must have a registered address which will be set down on CAC records as the address of the company. If you intend to have branch addresses for the company, details of these additional addresses if any are to be noted and set down as well.
- Filing fees and services fees for CAC-accredited agent undertaking the registration for your proposed company. This is very important, as there are fees to be paid along every step of the way, from the point of name reservation, to the payment for the new company’s certificate of incorporation and Status Report.
- Authorized Share Capital. You must have the authorized share capital for your new company and all shares will be regarded as “paid up” upon incorporation. Your CAC-accredited agent can advise you on share capital requirements and provide all the necessary information you require to make a decision because there are share capital thresholds for different companies in Nigeria.
Steps to Reasons to register your company in Nigeria
- Conduct Name Availability search. Your CAC-accredited agent will conduct a search on the CAC Portal to confirm that your chosen name is not already in use by another company, or undergoing registration by another company. This step will help to prevent conflicts between companies and ensures that your company name is unique to your company alone and no other.
- Prepare all necessary Documents to register your company: There are numerous documents which is required for you to register a company in Nigeria. These documents include: valid means of identification, passport photographs, alongside numerous other document requirements. Your CAC-accredited agent registering your company on your behalf can provide you a detailed checklist of all required documents you need to provide to move along in the company registration process.
- Begin Registration: the registration process begins in due course when you conduct a Name Search at the CAC portal and reserves the proposed name you intend to register for use as your company name. Note that upon the reservation of chosen name, you have to register a company in Nigeria with name reserved name within sixty days from the days of reservation otherwise the name will become available again to the general public for use by another person or entity after the expiration of the sixty days reservation period. In the course of registration there are numerous forms to be filled and submitted, ensure that they are all done, and provide all required details and documents, including all necessary details of the principal officers of the company, the shareholders, alongside other relevant details. You are required to submit numerous supporting documents as well, pay all necessary fees, then await approval of the company by CAC.
Registering a company in Nigeria with CAC-accredited agents is a structured process and requires a careful consideration of various steps in the process and a provision of various documents, alongside payment of required Agency fees before registration is complete. After a successful registration of the company, then you can fulfill post-incorporation requirements such as obtaining your company seal, opening corporate bank accounts, and ensuring tax compliance.
Additional Resources [Click to download]
This article is from the corporate and commercial law practice group at Kabbiz Legal & Advisory.
If you seek the assistance of CAC-accredited agents to help you with company registration services in Nigeria, our lawyers at Kabbiz Legal & Advisory are CAC-accredited, have assisted numerous businesses to set up their company operations, and we are here to help. We invite you to connect with us via email at kingsley.ani@kabbizlegal.com or contact@kabbizlegal.com . You can also call or WhatsApp us at +2347035074930. We can help you with a seamless and efficient registration process for your company.
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