Are you starting a business in Nigeria? Do you want to register a limited liability company in Nigeria? Then read on as I explain in detail how to incorporate a business in Nigeria.
Now for those entrepreneurs who are interested in registering a limited liability company in Nigeria, it is important you know that the CAC is in charge of such task. Now what is CAC and what is its function? The Corporate Affairs Commission (CAC) is the governmental body responsible for registering business names and companies in Nigeria. Without wasting your time, here’s how to register a limited liability company in Nigeria.
How to Register a Limited Liability Company in Nigeria
1. It is advisable that you register your limited liability company through a lawyer. This will save you the legal headaches and help you avoid costly mistakes. So please get a legal adviser.
2. The minimum number of shares that can be registered for a limited liability company is one million shares.
3. The first step to registering a company is to choose three unique names for your company. An example is XYX Global Ltd or XYZ Nigeria Ltd. Then a name search will be conducted by the CAC and if one of your chosen names is found suitable and unregistered, it will be assigned to you.
4. If your name is chosen, you will have up to 60 days to complete the whole registration by filling and filing the forms.
5. After the name search, you need to choose your directors. That is after dividing the share ratio among the directors.
6. A minimum of two people is required to start a company. The maximum is 50. These people are referred to as directors.
7. A minor (someone below the age of 18) can only be a director in a company provided that there are two other adults listed as directors.
8. The full names, ages, year of birth and residential addresses of all the directors must be supplied for filling and filing the forms to the CAC.
9. A foreigner can also be a director provided that one or more directors reside in Nigeria. But to avoid unnecessary query, it’s advisable that all directors adopt Nigeria addresses.
10. You must supply the proposed address of your company’s head office.
11. All directors must sign the filled forms and memorandum of association before filing for stamping and verification.
12. After stamping and verification has been done by the CAC, you will be issued a certificate of incorporation.
In conclusion, it is advisable you demand a CTC from your lawyer. Now what is a CTC? A CTC (Certified True Copy) is a copy of the memorandum of association that has been verified and stamped as an exact true copy of the M.O.A in CAC’s possession and file.
And most importantly, you must bear in mind that the price for registering a limited liability company is not static. This is due to the ever changing policy of the CAC. I want you to also note that the price you pay to incorporate a business depends on the calibre of the law firm you engage or how much your lawyer charges you for the services rendered.