REGISTERING A BUSINESS IN NIGERIA
REGISTERING A BUSINESS IN NIGERIA
The body charged with the responsibility of registering businesses in Nigeria is the Corporate Affairs Commission (CAC). With headquarters in Abuja, this commission has branches in all the thirty six states of the federation to bring registration closer to the people. Registration can also be done online via the internet. Website includes:
http/www.cac.gov.ng
http/www.cacnigeria.org
http/www.cacnigeria.net
http/www.cacnigeria.com<
Registration is required because:
1. There are local, state and federal regulations requiring one to register and one may be subject to fines and other penalties if one doesn't comply.
2. The internal revenue service (IRS), for example, requires that you identify your business and pay taxes on income earned.
3. You will need a registered business if you intend to obtain bank loans or enter into contract, especially with the government at any level.
STEPS IN REGISTERING A BUSINESS
Sole proprietorship registration
This is easy and inexpensive to registration and registration usually takes the following easy steps.
1. Choose a name for your business
2. Fill out a "Doing Business A's (DBA) form with the name of the business and your name, so the commission (government) will know the name of the individual who owns the business.
3. An official of CAC may then conduct a name search to make sure the name you have chosen does not exist already.
4. After your business name has been established, you will fill out a registration form and pay the required fees.
5. You may be asked to take the form to a notary, have it notarized and bring it back to the registration office.
A notary is a person who has been give the authority by the state to witness the signing of documents, you will have to show identification, such as driver's license, international passport or national ID card.
Registering a partnership
This involves steps similar to those of registering a sole proprietorship plus:
Since a partnership is an agreement between the partners, if the partnership involves intellectual property developed by the individual partners (e.g., a trademark or a book), each partner will need to assign (transfer ownership of) the right to the partnership.
Registering a limited liability company
The Companies and Allied Matters Act, 1990 as amended requires that companies formed under the act be registered with the registered with the Registrars of companies in Abuja and obtain a certificate of incorporation
The business owners are expected to complete two distinct forms:
A. Memorandum of Association. This detail:
i. The name of the company containing the word "limited",
E.g. Hyattractions engineering Nig Limited.
ii. Registered office of the company in Nigeria
iii.The object clause which set out the purpose for which the business is being incorporated
iv. Statement as to whether the company is public or private
v. That the liability of the members is to be limited.
vi. The amount of share capital and the division thereof into share of a fixed amount to members. The nominal capital is the face value of the total number of shares which the company is authorized to issue- e.g. 5,000 divided into 10,000 shares of 50k each.
B. Articles of Association - these are rules which guide the internal running of there business. Every company is faced with making its rules, the rules drawn up by the Act will apply where they are not covered in the Articles, e.g., company meetings, the rights of stockholders, the appointment, retirement, and removal, of board members, the powers of directors, and the declaration of dividends, structure. Other requirements include a written consent of the directors to act as such, and a written undertaking by each member to take and pay for his/her qualification share and condition procedure for winding up.
PERMIT, LICENSES, AND CERTIFICATE
Once registered, a business will need to research local regulations that may apply to it at the chamber of commerce or other relevant government departments
A Permit is an official document that gives you the right to carry on a specific activity, such as selling a product in a place.
A License is an official document that gives you the right to engage in an activity for as long as the document is valid. For instance, a driver's license or a doctor's license gives you the right to operate a motor vehicle or practice medicine for a specific period of time. The license expires after the valid period and may be withdrawn for reasons such as bad driving or unethical conduct
A Certificate is an official document that verifies something. A DBA for example, proves that your business is registered as a sole proprietorship, and a certificate of corporation proves that your business is registered as a limited liability
The body charged with the responsibility of registering businesses in Nigeria is the Corporate Affairs Commission (CAC). With headquarters in Abuja, this commission has branches in all the thirty six states of the federation to bring registration closer to the people. Registration can also be done online via the internet. Website includes:
http/www.cac.gov.ng
http/www.cacnigeria.org
http/www.cacnigeria.net
http/www.cacnigeria.com<
Registration is required because:
1. There are local, state and federal regulations requiring one to register and one may be subject to fines and other penalties if one doesn't comply.
2. The internal revenue service (IRS), for example, requires that you identify your business and pay taxes on income earned.
3. You will need a registered business if you intend to obtain bank loans or enter into contract, especially with the government at any level.
STEPS IN REGISTERING A BUSINESS
Sole proprietorship registration
This is easy and inexpensive to registration and registration usually takes the following easy steps.
1. Choose a name for your business
2. Fill out a "Doing Business A's (DBA) form with the name of the business and your name, so the commission (government) will know the name of the individual who owns the business.
3. An official of CAC may then conduct a name search to make sure the name you have chosen does not exist already.
4. After your business name has been established, you will fill out a registration form and pay the required fees.
5. You may be asked to take the form to a notary, have it notarized and bring it back to the registration office.
A notary is a person who has been give the authority by the state to witness the signing of documents, you will have to show identification, such as driver's license, international passport or national ID card.
Registering a partnership
This involves steps similar to those of registering a sole proprietorship plus:
Since a partnership is an agreement between the partners, if the partnership involves intellectual property developed by the individual partners (e.g., a trademark or a book), each partner will need to assign (transfer ownership of) the right to the partnership.
Registering a limited liability company
The Companies and Allied Matters Act, 1990 as amended requires that companies formed under the act be registered with the registered with the Registrars of companies in Abuja and obtain a certificate of incorporation
The business owners are expected to complete two distinct forms:
A. Memorandum of Association. This detail:
i. The name of the company containing the word "limited",
E.g. Hyattractions engineering Nig Limited.
ii. Registered office of the company in Nigeria
iii.The object clause which set out the purpose for which the business is being incorporated
iv. Statement as to whether the company is public or private
v. That the liability of the members is to be limited.
vi. The amount of share capital and the division thereof into share of a fixed amount to members. The nominal capital is the face value of the total number of shares which the company is authorized to issue- e.g. 5,000 divided into 10,000 shares of 50k each.
B. Articles of Association - these are rules which guide the internal running of there business. Every company is faced with making its rules, the rules drawn up by the Act will apply where they are not covered in the Articles, e.g., company meetings, the rights of stockholders, the appointment, retirement, and removal, of board members, the powers of directors, and the declaration of dividends, structure. Other requirements include a written consent of the directors to act as such, and a written undertaking by each member to take and pay for his/her qualification share and condition procedure for winding up.
PERMIT, LICENSES, AND CERTIFICATE
Once registered, a business will need to research local regulations that may apply to it at the chamber of commerce or other relevant government departments
A Permit is an official document that gives you the right to carry on a specific activity, such as selling a product in a place.
A License is an official document that gives you the right to engage in an activity for as long as the document is valid. For instance, a driver's license or a doctor's license gives you the right to operate a motor vehicle or practice medicine for a specific period of time. The license expires after the valid period and may be withdrawn for reasons such as bad driving or unethical conduct
A Certificate is an official document that verifies something. A DBA for example, proves that your business is registered as a sole proprietorship, and a certificate of corporation proves that your business is registered as a limited liability
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