PROCEDURE FOR BUSINESS REGISTRATION IN NIGERIA
Business registration in Nigeria is a crucial process carried out through a Federal Commission. The Corporate Affairs Commission (CAC) was established under the Companies and Allied Matters Act (CAMA) to oversee the formation and operation of companies in Nigeria, including the registration of businesses and post-incorporation matters.
The most appropriate form of incorporation for individuals looking to start a business in Nigeria is a private company limited by shares. This structure is also recommended for foreigners wishing to establish a business in Nigeria, whether through foreign direct investment or portfolio investment.
Additionally, Nigerians can register a business name (enterprise), which lacks the separate legal personality that a company possesses. Foreign nationals or foreign-owned entities cannot register a simple business name; they must register a company (LLC) with a minimum authorized share capital of NGN 10,000,000 (Ten Million Naira).
Significant advancements have been made regarding business registration in Nigeria. Since 2021, the ability to download incorporation certificates online has been introduced, and the requirements for incorporation have been simplified.
Requirements for Company Registration in Nigeria
Here are the requirements an applicant must provide to initiate the registration of a company in Nigeria:
- The registered address of the proposed company
- Email address and phone number for the proposed company
- Forms of identification for directors/shareholders, such as international passports and driver’s licenses
- Approval note of name reservation from CAC
- Full names, residential addresses, occupations, and dates of birth of directors and shareholders
- Objectives of the company
- Details of the company secretary (mandatory only for foreign-owned entities)
- Incorporation certificate and company resolution if another registered company (local or foreign) will be a shareholder or subscriber to the proposed company
Steps for Company Registration
To register the company, the following steps are required:
1. Log in to the CAC Portal: [https://www.cac.gov.ng/](https://www.cac.gov.ng/)
2. Submit two proposed company names for a name search
3. Prepare incorporation documents
4. Complete the pre-registration form and statement of share capital
5. Pay the stamp duty and filing fee
6. Upload relevant documents
7. Submit the registration application online
Upon approval of the registration, the CAC will issue electronic incorporation certificates and other related documents.
For individuals wanting to register a business name, the requirements are similar. A business name does not have shareholders and directors, but rather proprietors. The proprietor of a proposed business name must provide similar documentation as listed above for registration.
Finally, CAC registration must strictly adhere to the authorized share capital required for each business. For instance, a company intending to engage in shipping must have a minimum authorized share capital of NGN 25,000,000.
For more information on the procedure to register your business with the CAC, please contact us at:
- E-mail: info@fuciaservices.com
- Website: www.fuciaservices.com
- WhatsApp: +2348132444671