The process of company formation in Nigeria is not as straightforward as it is in many other countries. This is because there are several steps a foreigner must follow, and the requirements vary depending on whether you want to register a private company or a public company.
This article will discuss how to register a company in Nigeria, including the types of business entities available, and the steps required to form a new company.
Types of Companies in Nigeria
Companies can either be privately held or open to the general public. The focus of this article is on private companies.
A private business can be either limited by shares, limited by guarantee, or unlimited in size. Companies limited by shares are the most common type of Nigerian business entity, thus we shall focus only on them here.
Every application for a new business in Nigeria must be submitted directly to the Corporate Affairs Commission (CAC). The Companies and Associated Matters Act of 2020 provide the basis for the CAC’s legal authority and jurisdiction (CAMA).
Step-By-Step Process on How to Register a Company in Nigeria in 2023
If you are a foreigner and you are thinking of starting your own company, you can always register a company in Nigeria. The process of incorporation is not that complicated, but you must do it the right way.
Here is a step-by-step process on how to register a company in Nigeria in 2023:
Step 1: Choose the name of your company
The first step is choosing the name of your company. This is very important because it will be used as the official name of your business. When this occurs, the name will be checked for availability using the CAC’s web portal to ensure it is not being used by another business. When choosing a name for your company, make sure that it does not infringe upon any existing trademarks or copyrights. Also, choose names that are unique and easy to remember so that people will not confuse them with other businesses or products in the market.
Step 2: An explanation of the company’s goals and operations is required
The objectives and business of the company must be provided. This should include details of what products or services will be offered by the company, how much capital it intends to raise, and how it intends to raise this capital. It should also include details on how it plans to use its capital and what the expected returns are for investors. The purpose of this section is for potential investors to know what they are investing in.
Step 3: Location of the company’s official headquarters
The registered principal address of the company must also be provided along with any other addresses where any activities related to running the business will take place (if any). This is important because any official documents that need to be sent out by your company will be sent here first before being forwarded elsewhere.
Step 4: Enter Shareholder Information
To be considered a “private business,” a Nigerian company needs at least two members and no more than fifty. No one in the founding group can be: (1) under 18 (unless at least 2 others are), (2) mentally incompetent, (3) a fugitive from justice, or (4) barred from serving as a director under CAMA.
Include details such as the stockholders’ names, addresses, occupations, email addresses, and phone numbers. Also required is a government-issued proof of identification card, passport, driver’s license, or similar document.
Step 5: Get Your Paperwork in Order
Company registration paperwork must have the following elements:
· Declaration of Intent and Articles of Organization
· The company’s official notice of its registered office
· Board of Directors bios, contact info, and consent to serve
· A lawyer’s signed declaration of compliance
The CAC site is where people will go to receive all the paperwork, they need to participate in the new CAC procedure. Keep in mind, though, that the CAC portal only offers templates for the Memorandum of Organization and Articles of Association, so if you’re in a niche that requires specific paperwork, you may want to see a lawyer for help with drafting these documents.
Step 6: Payment, Delivery, and Collection
After making the necessary online payments (the amount depending on the share capital of your company), you may upload all the papers and your submission will be complete. If the CAC has any questions after you’ve submitted it, they’ll get in touch with you. In the absence of any questions, the CAC will notify you that your registration is complete, and you may then visit their office to retrieve your certificate of incorporation.
Step 7: Use an Entity Management Platform to keep on top of your obligations
After setting up your company we suggest that you use an entity management platform to help manage your online businesses and clients. We suggest 10compliance which is software company that is built for ensuring you stay up to date with your compliance needs.
Start a Business in Nigeria Today!
We hope this blog was helpful, and that you’ll take the next step to start your business in Nigeria.
If you’re thinking of doing business in Nigeria, Trust Compliance can help.
Get your business out on the right foot with our assistance in Nigeria. We have been helping businesses across the country get started for years, and we’d love to help you succeed. We can help you register your company, and make sure it is compliant with Nigerian law. We will take care of all the paperwork so that you can focus on what is important: running your business!
If you are ready for the next step, contact Trost Compliance today!
