the Corporate Affairs Commission (CAC) is the government agency responsible for registering companies in Nigeria. The brief explanation here is to further expatiate the procedure of the company’s formation and how to register a company in Nigeria
The first step required from every person or entity doing business in Nigeria is registering a company in Nigeria. Nowadays, the business registration process can easily be carried out online via CAC company online registration portal with the assistance of an accredited lawyer to attest to the requisite incorporation documents.
TYPES OF COMPANIES
Under Section 21 Companies and Allied Matters Act, there are six types of companies that can be registered in Nigeria. These are:
- Private company limited by shares.
- Public company limited by shares.
- Private company limited by guarantee.
- Public company limited by guarantee.
- Private unlimited company.
- Public unlimited company.
PRIVATE COMPANY LIMITED BY SHARES
Although there are different types of corporations that can be formed in Nigeria, the most used one among them is a private company limited by shares.
The private company limited by shares is most sought after because it is the most suitable and appropriate form of a company by which a business can be formed by more than two persons with limited risk. The simplicity of forming a private company limited by shares also couple to its efficiency as a purpose vehicle for business within Nigeria and every other part of the world.
Subject to the provisions of the Nigerian Companies And Allied Matters Act LFN 2004(CAMA), every private company must be comprised of A minimum of two members (shareholders) and two directors. It is not mandatory for the directors of a private company to also own or hold share from the same company. Furthermore, an infant or a bankrupted person is not qualified to be a director of a company as well.
Additionally, under Nigerian law, foreigners can fully own a company 100%
- A GUIDE TO NIGERIAN BUSINESS FORMATION
In considering how to register a company in Nigeria, the following are the requirements needed for the incorporation of a company in Nigeria:
- Proposed Name of the Company (2Names)
- Nature of Principal business the company will be engaged in
- The Registered Office Address of the Company
- Type of Company to be incorporated : (Private or Public Company)
- Particulars of the 1st Directors (minimum of 2 persons above 18years ) :
- (Name, Date of Birth, Gender, Phone Number, Email Address, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport), Percentage of shares to be held: if the director is also a shareholder).
- Particulars of Shareholders (minimum of 2 persons) :
- (Name, Date of Birth, Gender, Phone Number, Email Address, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport), Percentage of shares to be held).
- Particulars of the Company Secretary (He/she could be an individual or a corporate body)
- (Name, Date of Birth, Gender, Phone Number, Email Address, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport),).
- Particulars of alien participants, if any.
- (Name, Date of Birth, Gender, Phone Number, Email Address, Nationality, Forms of Identification-(National Identity card, Permanent Voters card, Driver’s Licence or International Passport).
The Corporate Affairs Commission through several efforts and in line with the government’s directives on easing the process of doing business in Nigeria has simplified a means by which a business can be registered in Nigeria. How to register a business with CAC nowadays, compared to how it is used to be registered a few years again, shows improvements in the entire process of business registration in Nigeria.
Business registration in Nigeria can now be commenced and processed online, from the availability search to the completion stage, through the online medium.
The process of incorporation and how to register a company in Lagos is also the same as the process of incorporation at the CAC headquarters, Abuja.
The CAC has made an audacious attempt to cut off or reduce the influence of the third party in the company’s registration in Nigeria. However, incorporation of a company can still not be concluded unless a CAC accredited agent has duly certified or attested to such application for registration.
Moreover, a company incorporation expert may also help to draft the Memorandum and Articles of Association of the new company proposed for registration, properly put the entire application together and duly attested to it in line with the statutory provisions.
You Can start by visiting : http://new.cac.gov.ng/home/registration-steps/