Nigeria's Corporate Affairs Commission has made it easy to register a business in Nigeria for citizens and residents via the Company Registration Portal (CRP). The platform is an end-to-end system that allows individuals to carry out the entire process from name search to actual registration, at your convenience. Getting a business formalized is essential to benefit from certain corporate and government protection.
There are two main types of business forms that can be registered in Nigeria
A business name is a simple and affordable form of business registration in Nigeria. It provides the proprietor the benefits of having a simple formalized business. Thus an entrepreneur can formalize their business using this entity type and open a business bank account. It is however important to note that this structure does not offer the business owner protection from liabilities of the business.
This is the recommended form of business registration in Nigeria. The Limited Liability Company structure provides the owners with corporate protection. The liabilities of the business are not liabilities of the owners. This structure allows the business raise money from investors through the issuance of shares.
The requirements for Registering a business in Nigeria include the following:
The proposed business name search is conducted to ensure it is not similar to an existing registered business. If approved, it is reserved for 30 days. CAC has a requirement on the minimum amount of names to be submitted, it is practice to submit 2 names however, it is important that you have a few more alternatives should these names be denied for any reason.
This is essentially the business that the company is being set up to carry out. This business must be entirely legal and not against public policy.
For transparency and accountability purposes, CAC requires that the ownership information be indicated on the application for registration. Additionally, these individuals must have consented to be involved in the business.
A valid and unexpired proof of identification must be provided for each owner of officer of the business during the registration process. International passport, voters card, driving license, National Identification Card or NIN Slip can all be used as proof of Identification.
A clear and recent passport photograph must be provided for every owner owner and officer of the company.
A recent utility bill, ideally within the last 3 months must be provided to serve as proof of business address while registering a business.
The Companies and Allied Matters Amendment of 2021, aims to ease the operation of businesses in the country. Company registration processes are now online and must be done on the Company Registration platform. Payment is made via remitta using electronic means such as credit, or debit cards.
The cost associated with business registration depends on the type of entity to be registered. Sidebrief registers businesses as highlighted below
Verification of whether a business is registered can be obtained from the CAC website here.
Sidebrief is a RegTech startup that makes business registration and compliance easy for founders, entrepreneurs, and business owners across Africa by removing lengthy paperwork, complexity, and hidden fees. We provide the tools for founders to start and scale businesses across borders from a single interface. To take advantage of exclusive discounts and pricing, simply sign up to get started.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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