Having a thorough understanding of the regulatory landscape in Nigeria is crucial for business success, yet it's often one of the most challenging parts of setting up a business. Depending on the industry, obtaining specific licenses and business permits in Nigeria is not only necessary for compliance but also builds trust with clients and partners.
This guide provides a comprehensive breakdown of essential licenses and business permits to maximally operate in Nigeria. Understanding these requirements can reduce delays, avoid fines, and support a smoother operation for businesses in Africa's most populous nation.
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How to register your company name with The Corporate Affairs
Commission (CAC)
The Corporate Affairs Commission (CAC) is the government agency
responsible for regulating the formation and management of
companies in Nigeria. It was established under the Companies and
Allied Matters Act (CAMA) in 1990 and is responsible for
registering and regulating companies and businesses in Nigeria The
main reason why you need to register your company with the CAC
is that it is a legal requirement. All companies and businesses
operating in Nigeria are required by law to register with the
CAC. Failure to do so can result in hefty fines, legal action,
and even the closure of your business.
However, the process can be overwhelming and confusing,
especially for first-time business owners, as there are many
legal requirements and paperwork to fill out CAC
registration also provides legal protection for your company’s
name and brand, making it easier to protect your intellectual
property and prevent others from using your name or logo without
your permission.
Here is a list of five required documents to register your
company in Nigeria;
·
Memorandum and Articles of Association (MAA)
·
A notice of the registered address of your business
·
Statement of compliance by a legal practitioner
·
Receipt of payment of your stamp duties
·
Particulars, list, and consent of the first directors of your
company
How long does it take to register your company with CAC?
To register your business in Nigeria, it takes between seven to
twenty-one working days (7 – 21 days). The number of days or
weeks it takes to register your business in Nigeria depends on
how fast the CAC is working and if you are working with an agent
(business consultant or a lawyer) or doing it yourself. It is
important to note that the requirements for registration of an
enterprise differ from that of a limited liability company So, don’t think
of registering your business as unnecessary paperwork.
Registering your business can help you protect your assets,
build your reputation, and grant you access to the funding you
need to grow your business
The cost of registering a business in Nigeria
The cost of registering a business in Nigeria varies depending
on the type of business and the state in which it is registered.
For example, the cost of registering a sole proprietorship or a
partnership in Lagos State is approximately 45,000 Naira.
Registering an LLC in Lagos State is about 100,,000 Naira. In
addition to the fee for registering a business, there may be
other costs, such as legal fees, accounting fees, and the cost
of getting any licenses or permits that are needed.
Choosing the right business structure
It is important to choose the right business structure for your
business because it can have a significant impact on your
personal liability, taxes, and ability to raise capital,your
business structure also determines the documents and
requirements you’ll be asked for during the registration
process.
Based on business structure, you can register your business in
Nigeria as a:
•
Sole Proprietorship
•
Private Limited Company
•
Public Limited Company
•
Public Company Limited by Guarantee
•
Private Unlimited Company
Steps to Take to Register Your Business or Company in Nigeria
In order to start your
business registration, you need to do business name availability
search, this name search is conducted on CAC
portal. the result of
this search determines your next step.
It is worthy to note that there are prohibited names you cannot
register with CAC , and there are also restricted names, which
requires consent of the registrar general of the commission
before it can be used for business purpose.
OR Alternatively Use a cac accredited agent for fast Business
name Registration- most of the CAC
consultants have massive
input in helping you avoiding some costly mistakes while doing
registration.
Registration with an accredited CAC agent is stress free.
Fill our application form:
https://forms.gle/
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