Whether you are a Nigerian, residing in or out of Nigeria or you are a foreign national looking to do business here in Nigeria, here are 5 things that you need to know before registering your business in Nigeria.

Number 1: The main body that regulates the formation and operation of businesses in Nigeria is the Corporate Affairs Commission, popularly called CAC

 for short.

The law says anyone who wants to do business in Nigeria must first register that business in Nigeria.

So it is actually illegal to carry on business in Nigeria whether online or offline, without registering the business in Nigeria with the CAC.

Number 2: The Companies and Allied Matters Act (CAMA) is the primary law that regulates the operation of business organizations in Nigeria. In fact, the CAMA established the CAC and empowered it to make rules and guidelines for the formation and operation of businesses in Nigeria.

Apart from CAMA and CAC, there are other laws and regulatory body that regulates the operations of business in Nigeria, and depending on the nature of your business, you may need to further with those other bodies or laws.

Number 3:  You don't have to have a physical office space before you register your Company with the CAC.

One of the registration requirements is an address.

The law did not say the address must be your own.

Your company can reside in your home.

So your registered Company address can also double as your residential address.

You can also use a temporary address such as a Co-working space as your registered Company office.

Number 4: Not all businesses can be registered as a one million share capital company.

Some businesses have an industry-based regulatory minimum share.

What that means is that some industries require you to register with a higher share capital other than 1 million.

For example, to register a shipping Company or Agency, you need to do a 25 million share capital company.

You should speak with an expert who will properly advise you on the required share capital for your business before attempting to register.

Let me add at this point, that you are not required to have the cash equivalent of your share capital at hand or in the bank before registering.

It is just there on paper and it represents the unit of ownership in the company.

Number 5: Where the company is wholly or partly owned by a foreigner even if he is a Ghanaian or Togolese, the authorized minimum share capital for the company registration must not be less than a million share capital Company.

The company may also be subjected to other regulatory checks due to the presence of the foreigner in the business formation or setup.

If you are thinking of starting up a Company or establishing a business presence in Nigeria, these are the factors that you must pay attention to.

Let me know if this was valuable to you .

Also, feel free to reply to this email if you want us to help you with your business formation and setup needs.

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#BarinaadaLegal