How to Register Business in Nigeria With Ease.
To register business in Nigeria is not difficult. You only need to understand the procedures. This article provides you step by step guide on how to register a business name or company in Nigeria.
The first step is to visit any branch of Corporate Affairs Commission and enquire on how to register business. Staffs of the organization or other people that came for registration will direct you on where to procure forms. (Note that there are various forms to be completed before you can register business in Nigeria). You start the registration by purchasing an availability form from any of the Commission’s Office nationwide. The availability form gives you the privilege to choose two names at a time on the same form. This implies that if the first name is not approved, the second one may stand the chance to be approved. If the Commission did not approve any of the two names, this means you need to obtain fresh Availability Form and start the process again.
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The name search used to take a period of approximately three weeks. With the new twenty four hour business registration which the Commission has just introduced, this bureaucracy has been eliminated. In this new dispensation, it means that an individual can initiate the process of business registration and complete it within one day. Presently, this is only possible at the Commission’s Lagos offices at Alausa and Yaba and the headquarters at Abuja. It is hoped that this will soon be extended to all the Commission’s offices nationwide
After securing approval, the name will be reserved for you for the next sixty days. Within this period, you are expected to obtain and complete Business Name application form. You will then submit the form for verification and then make payment for filing fees.
On the Business Name application form, you will indicate the following:
- Your approved business name
- The description of the objects of the business
- The name(s) and the addresses of the Proprietor(s)
- Commencement date of the business.
You will be required to submit the following documents along with the completed Business Name application form:
- Copies of credentials that show you are qualified to operate the type of business you are applying for.
- Current utility bill indicating your address.
- Two current passport sized photograph of the Proprietor(s)
- Particulars of any corporation that is a partner with copy of certificate of incorporation, certified true copy of particulars of her directors and evidence of annual returns paid up to date.
- Evidence of change of name where there has been change of name of the applicant
- The application form must be signed by a Magistrate, a legal practitioner or a Police officer not below the rank of an Assistant Superintendent of Police.
These have to be verified by the Commission before you can be authorised to pay the filing fee. After payment, you will submit your file. Keep a copy of your receipt as you will need to present it at the point of collecting your Business name registration certificate.
With less than twenty thousand naira, you can register business name in Nigeria (an enterprise please) assuming you handle it yourself. If you engage the service of a professional, you will need to pay for his service.
After registration, you can still make the following changes as occasion demands:
- Change of business name
- Change of Proprietor’s name
- Change of Address
- Change of nature of business
- Change of partner(s) in case of Partnership
How to Register Business in Nigeria (Second Part)
Registration of Companies
To register business (limited liability company) in Nigeria, you need an accredited agent who may be a Lawyer, Chartered Accountant or Chartered Secretary. These are professionals accredited to register companies.
But effective from 1st January 2013, Registration of Limited liability Companies can now be processed directly by the first Directors/Subscribers to Memorandum and Articles of Association similar to what obtains in the case of Business Names and Incorporated Trustees. It is now a requirement that the Subscribers/Directors of all companies under Part ‘A’ of CAMA and Trustees of Associations under Part ‘C’ of CAMA must submit recognized form of identification such as information page of International Passport, Drivers License or National Identity Card for all registration and relevant post registration applications.
Documents required for Registration
- The law requires that the following document be delivered to the Commission for the registration of a company:
- Form of approval for name
- Duly completed set of incorporation forms
- Duly stamped memorandum and articles of association
- Photocopy of information page of international passport or national identity card for each director and subscriber
- Evidence of consent letter where applicable
- Proficiency certificate where applicable
- Residence permit in case of resident foreigners
- Photocopy of duly verified Particulars of Directors, Statement of Share Capital and Return of Allotment of Shares together with memorandum and articles of association for certification as true copies
- Duly signed and sealed resolution of the company authorising the subscription where a company subscribes to the memorandum
- An affidavit stating circumstance of cancellation or alteration in the signature on any document or any difference in the name on stamp duty receipt and name on other documents.
- A statutory declaration in the prescribed form by a legal practitioner that the requirements for the registration of a company have been complied with.
How much does it cost to register business in Nigeria?
The registration fee for limited liability companies is more expensive when compared to business names. For public companies, the registration fee if the Share capital does not exceed One Million Naira is twenty thousand naira. If the Share capital exceeds One Million Naira, the fee will be thirty thousand naira for the first One Million Naira and thereafter, twenty thousand naira for every One Million Naira or part thereof.
For private companies, the registration fee if the Share capital does not exceed One Million Naira is ten thousand naira. If the Share capital exceeds One Million Naira, the fee will be ten thousand naira for the first One Million Naira and thereafter, ten thousand naira for every One Million Naira or part thereof.
Besides, there are other fees such as stamp duty fee which is 0.75% of the share capital, fees for Certified True Copy of Memorandum and Articles of Association, Forms CO2, CO6 and CO7 and professional fee. These fees are subject to change.
I believe this article has enlightened you on how to register business in Nigeria.
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