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 " because he was afraid.

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 number of shares they have decided to take up shows the amount of risk taken in the business.

This determines the extent of their liability in the event that 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 actually go and pay the money into any bank and bring the receipt or teller to anybody or the CAC during registration.

The share capital simply shows the " net worth of the company at incorporation, of course you know that there are lots of businesses, especially service-based businesses that operate with little or no capital.

However, by virtue of the fact that you have decided to do a Ltd company registration, there is a need to comply with the requirements...

This includes stating clearly in the memorandum of association what the share capital (Value) of the company and the actual shareholding of each director...

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 a Limited Liability company registration.

They are not the same thing and the implications differ.

Also know that If you already have a registered business name, it's possible to upgrade to a company.

And that is why we are here...

To give you a professional guidance every step along the way.