HOW TO REGISTER A LIMITED LIABILITY PARTNERSHIP IN NIGERIA
The Companies and Allied Matters Act (CAMA) 2020 makes certain commendable advancements, one of which is the Limited Liability Partnership (LLP)
HOW TO REGISTER A LIMITED LIABILITY PARTNERSHIP IN NIGERIA
The Companies and Allied Matters Act (CAMA) 2020 makes certain commendable advancements, one of which is the Limited Liability Partnership (LLP). It is essentially a merger of the characteristics of a partnership and a corporation, allowing a group of people to pool resources to start a business while having their liability limited similarly to that of shareholders in an incorporated company, as opposed to a general partnership where liabilities were not limited.
LLP is described in Part C, Sections 746-788 of CAMA 2020. People who want to form a partnership now have the chance to do so and gain the advantages of doing so, including the ability to sue and be sued in its name, own, hold, develop, and dispose of real estate, have a common seal (optional), and carry out any other legal acts that a body corporate may do.
STEP 1 – RESERVATION OF NAME
Reserving the proposed LLP's name is the first step. To check whether either name is available, two (2) names are typically requested. One (1) name is then approved for usage moving forward in order to complete registration. Upon approval, an availability code is sent.
STEP 2 – REGISTRATION
After paying the needed price and using the availability code, you can access the CAC/LLP 01 form (Application to Register a Limited Liability Partnership). It is necessary to provide the information below.
Approved LLP name Details of at least 2 partners Details of at least 2 designated partners, one of whom must be resident in Nigeria. Description of business activity Details of verifiable registered address and address of the head office (if different from registered address), company’s email and phone number Details of members (individual or corporate) Details of Person with Significant Control (one who directly or indirectly has at least 5% of interest, voting rights in the partnership, can remove or appoint a majority of partners and exercise any significant control over the affairs of the company. Contribution of each member to the partnership. Partnership Agreement
The operation of a foreign LLP is also recognized by Section 788 CAMA 2020, which must be registered if it wishes to conduct business in Nigeria. However, a waiver may be approved by the Minister. A foreign LLP may request an exemption from the Minister under Regulation 22 of the Companies Registration, 2020, provided that it is:
An LLP invited to Nigeria by or with the approval of the Federal Government to execute any specified individual project. An LLP in Nigeria for the execution of specific individual loan projects on behalf of a donor country or international organization. LLP owned by a foreign government and engaged solely in export promotion activities. An engineering and technical expert engaged on any individual specialist project under contract with any of the governments in the Federation or any of their agencies or with any other body or person, where such contract has been approved by the Federal Government.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080