Legal requirements for starting a business in Nigeria

Drealup

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Legal requirements for starting a business in Nigeria
Posted on: December 28, 2017, 03:53:59 PM
Starting a business in Nigerian is not all that easy as you are required to fulfill all those requirements needed by law.

As such it is important to have a brief legal guide for starting a business in Nigeria.



What are the legal requirements for starting a business in Nigeria?

In the Nigerian constitution,the law that states the factors of starting your own company in Nigeria is the Company and Allied Matters Act (CAMA).

This act contains a lot of articles about the legal support of business in the country. For example, it explains the types of business structures.

In Nigeria, you can open these types of companies:
◆ Unlimited company.
◆ Company limited by shares.
◆ Registered business name
◆ Company limited by guarantee.
◆ Incorporated trustees.

For the company types listed above, these folowing rules apply:

◆ Your company must have between 2 to 59 members. Keep in mind that this rule doesn’t refer to such type of company, as the registered business name, where you are always the only member.

◆ The founders of the company must be over 18.

◆ Also, all of the members must be of sound mind and good financial state (no bankrupt).

◆ Minimum capital of the company limited by shares must not be less than N10,000.

How to register a company to CAMA

If you want to register your company, you must submit some documents to the CAMA representative. They include:

◆ Articles of Association and Memorandum.

◆ Notification about the registered address of the company.
◆ List of the directors, information about them and their written consents.
◆ Statement of compliance, signed by a legal practitioner.

If the documents are complete and accurate, the company will be given a Certificate of Incorporation.  

Other legal requirements for opening business in Nigeria

The list of requirement for entrepreneurs is much more than what was mentioned in the Company and Allied Matters Act. There are a few things to consider after creating your own business in Nigeria.

◆ Duty to pay taxes.
◆ Duty to provide insurance.
◆ Registration of your intellectual rights (optional).
◆ Requirements pertaining to labor.

Each of these are needed to open company limited by shares. The type of tax you will pay will depend on the type of business activity your company is engaged in same for the type of insurance.

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The success of any enterpreneur or his/her enterprise depends of his strict adherance to rule of the country he is investing on. Also note that with a good business plan, success is halfway guaranteed!