How to Register A Business In Nigeria (The complete guide with everything you need to know)
The security of your business is vital. Having your establishment aligned with the laws that govern the mode of operation in any environment gives a unique sense of security. In addition, registration of your business with the right authorities will give you a sense of security and calmness.
Nigeria is one of the technologically advanced nations on the African continent, and owing to that, they have streamlined the process to register your business in Nigeria. Under the Companies and Allied Matters Acts (cama) 2020, Nigeria established the Corporate Affairs Commission (CAC) to aid entrepreneurs in registering businesses in Nigeria.
To register a business in Nigeria, there are two major factors to be considered. One is to register your business name; the second is to incorporate your business with a limited liability company with corporate affairs. In addition, a registered company enjoys the privilege of being able to access business loans from banks with next to zero hardship.
A business name is commonly known in sole proprietorship and companies limited by guarantee owned by shareholders. As the name corresponding to their liability, they are limited to the shares they own in the company. And in addition, it is also possible to turn your business into a Limited Liability Company but on conversation cost.
Additionally, a foreign investor can also participate in any enterprise in Nigeria unless the business's name appears on the negative list. The negative list is a collection of businesses associated with the manufacturing of firearms and other military materials. Foreigner investors can choose to operate alone or in a joint venture with other existing enterprises in Nigeria. However, this has to be done under corporate affairs company with the cooperation of the Nigerian investment promotion commission.
How to register a new business in Nigeria
In Nigeria, you are free to register a company online with CAC through its online platform. Several steps must be considered in regards to getting the desired results; let us take a quick look at these steps;
1: Name reservation
This should be the very first step to be careful taken into practice when registering a company with corporate affairs commission; you can reserve the name of your business by applying for it online; however, the online process has steps that must be followed to have a successful; these are steps to follow when you are applying for the name reservation;
Create an account and sign up with the corporate affairs commission, and if you already have an account, you can sign up.
Go to name reservation.
Click on the new name reservation.
Fill the necessary column, and you will be asked to be a certain required amount for registration, and when you are done doing what is required of you, you can then wait for feedback from the CAC.
If the process becomes a success, then you can print out the approval note for future use.
This is a vital step during business registration, and there is a criterion to be followed; let us check it out; the very first step that is required of you here is filling all the necessary CAC forms in registration columns, and the information that might be required of you is;
Information about the company
Company office address and email address of the company.
Names of directors or partners and there should be more than 2 persons with a minimum of 18years.
Date of birth, status, director contacts, photocopies of national ids, and percentage of the company's share capital.