Business registration in Nigeria is not only about getting a good location, structure, commodities and others. Every business should also be registered. To legalize your business it must be registered with the Corporate Affairs Commission which is the Agency established under Company and Allied Matters Act. Furthermore, the functions of the Commission include but are not limited to; regulation, supervision of the formation, incorporation, registration, management and winding up of companies.
FORMATION OF COMPANY
According to the provision of the Company and Allied Matters Act, any two or more persons may form and incorporate a company by complying with its proviso concerning the registration of any company.
TYPES OF COMPANIES
There are different categories of business registration in Nigeria they include;
- Business Name Registration
- Private Limited Company (LTD)
- Public Limited Company (PLC)
- Company Limited by Guarantee (LTD/GTE)
- Unlimited Company (ULTD)
- Incorporated Trustee
The benefit of Registration of business with the Corporate Affairs Commission (CAC)
Whether you’re running a small; business or a multi-national business in Nigeria, there are several benefits to CAC registration. Here are a few benefits of CAC registration in Nigeria.
1. Certificate of Incorporation
By registering your business, you will be issued a Certificate of incorporation by CAC. This Certificate will carry your business name and a unique registration number that can be used in all your company’s documents; which will give it credibility and boost your customer’s trust in your brand.
2. Reputation
When starting a new business in Nigeria, it is important to note that it could be very difficult for your customers to trust your brand (because it’s new) and even more difficult when it is not registered. Customers feel more confident transacting with a legally registered business, especially when your business is based online. It removes the anxiety of people thinking they are dealing with a scammer
3. Legal Protection
Having your company registered makes it a legal entity, which means it can sue and be sued in its name, this in turn separates you from the business.
4. Loans/Investment
It is easier to obtain a business loan and also attract investors when your business is registered with CAC. The application process would be easier because your business will be seen as authentic and trustworthy. It enables you to open a corporate and operate a corporate account.
Requirements for a foreigner to Start a Business in Nigeria
Starting a business or company in Nigeria may not be as expensive as starting one in other countries in the world, but some requirements are needed to run it smoothly. Meeting these requirements will allow your business to run smoothly, protect it to some degree, make it trustworthy, and prevent legal issues. These requirements also apply to foreign brands setting up a company in Nigeria.
The requirements for a foreigner/foreign brand to operate a business in Nigeria are not complicated to do. They include;
- Incorporation/Registration of a business
- Registration with the Nigeria Investment promotion commission
- Approval of business permit
- Immigration requirement and resident permit(CERPAC) application for expatriate quota
- Bank Account opening
- Procurement of certificate of capital importation
- Taxation registration.
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Conclusion
According to Nigerian law, only accredited individuals or law firms can carry out most of the requirements of the Corporate Affairs Commission concerning company registration.
As an individual, the onus lies on you to provide insurance for both your company and its staff and register all your intellectual rights of your business, such as patent, trademark, and industrial design, where applicable. Registering your intellectual properties will enable you to avoid plagiarism, gain brand awareness, and enable you to take legal action against infringement.
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