So, after a long legal audit session with a potential client a few days ago I decided that I will not let the year start off like that without clarifying some misconceptions about setting up a company in Nigeria. 

So, after a long legal audit session with a potential client a few days ago I decided that I will not let the year start off like that without clarifying some misconceptions about setting up a company in Nigeria.

This clarity is important so that you can be better positioned to make the year count.

NUMBER 1.  First of all, understand that a company is a creation of law.

It is a legal entity recognized by the law as an artificial person with all the powers of a natural person.

NUMBER 2.   Contrary to what you may or may not already know,

You do not need a physical office to establish a company.

Your company as an artificial person can reside in your home.

So yes, you can use your residential address as your registered company address.

NUMBER 3.   You do not need so many people to float a company.

The other day, someone came to me for company registration. He wanted to have 50 persons as shareholders because he learned that a private company can have as many as 50 persons on board.

While that is actually true, it is an absolute absurdity to have that number of persons as shareholders in a startup company.

I personally don't think as a fresh company, you should have more than 5 members or shareholders at the start-up stage.

Investors who would otherwise have funded you will be wondering why you still need funding when you can just raise the funds from your numerous shareholders.

NUMBER4.   A company is not actually the physical building nor is it the people running it.

A company is just legal fiction.

That is why the company may continue to exist even though all the people are dead and the building has collapsed.

Likewise, The Company may die or cease to exist even though the building is still standing and the people still living.

NUMBER 5. You do not need to have physical branches of your business scattered all over the country just to prove a point to your competitors.

There is a reason you are called a start-up.

Run at your own pace.

Understand that you are not in competition with anybody.

NUMBER 6. Finally don't shoot yourself in the leg by trying to become the CEO as well as the lawyer in your business.

In 2023, get your company a legal bodyguard and your business will thank you for it.

, reply to this email with your questions and let us know how we can help your business

-BarinaadaLegal.