Early this morning I was having this conversation with a potential client and after I had gotten to the part of share capital and directors he said; "let me just do a business name registration".

so I'm going to share with you what I shared with him.

A company must have at least two directors and a secretary either of the directors can be a secretary or an entirely different person can be appointed as a secretary of the company.

The Company must be registered with at least 2 members who shall be directors in the business and they will each take up a part of the share capital between or among themselves depending on the number of directors.

The amount of shares they have decided to take up shows the amount of risk taken in the business and so it determines the extent of their liability if the company runs into bad debt or it becomes wound up and its assets are liquidated.

Having one million share capital or more as the case may be doesn't mean that you have to go and pay the money into any bank and bring the receipt or teller to anybody or the CAC during registration.

The share capital is more like " The Accepted net worth of the company at incorporation.

you know that there are lots of businesses especially service-based businesses that operate with little or no capital.

However, because you have decided to do an Ltd company registration, there is a need to comply with the requirements including stating clearly in the memorandum of association...

what the share capital (Value) of the company will be at the inception

The actual shareholding of each director.

The specific object clauses of the company are, at the point of registration.

So whatever you do, don't let the thought of one Million share capital, etc be the reason why you suddenly decide to do a business name registration over company registration.

They are not the same thing and the implications differ a whole lot especially when you have big plans for your future.

I hope this was helpful to you ?

Have a blessed day.

Barinaada.

P.S If you already have a registered business name, it's possible to upgrade to a company.

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