PROCEDURE FOR COMPANY REGISTRATION IN NIGERIA
When it comes to setting up a company in Nigeria, the process is relatively straightforward.
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PROCEDURE FOR COMPANY REGISTRATION IN NIGERIA
In law, a company refers to a legal entity formed which has a separate legal personality from its members. The Companies and Allied Matters Act (CAMA) 2020, which is the primary law governing companies in Nigeria, requires that all companies, whether a private company limited by shares, private unlimited, or a corporation limited by guarantee, be registered.
When it comes to setting up a company in Nigeria, the process is relatively straightforward. Under the Company and Allied Matter Act registration of Companies in Nigeria is done with the Corporate Affairs commission. Companies are thereby registered through the accredited agents authorize to do so by the Corporate Affair Commission. The main accredited agents are:
Legal practitioners,
Chartered secretaries,and
Accountants.
STEP BY STEP PROCEDURE FOR COMPANY REGISTRATION WITH CORPORATE AFFAIRS COMMISSION IN NIGERIA
SUITABLE PROPOSE NAMES: The first step required by an applicant to start a company is to choose two suitable proposed names for the company. After choosing a suitable name for your company an availability check will be conducted on the CAC online portal to find out if the name is available and not been in use by another company.
Usually, the reason why you should submit two names is that if one is taken, the other might be available. A name is always rejected if it already exists, is confusing, or includes certain prohibited words such as ‘National’, ‘Federal’, ‘Government’ or ‘Holdings’ without special permission.
ONLINE APPLICATION: Once the name is approved, the applicant either by himself or through an accredited agent proceed to complete application forms online, which involve the following requirements:
Approved name
.Proposed company type intended to be registered
.Description of principal business activityTraceable registered address and head office address where it is different from the former, company email address and phone number.
The articles of association for the proposed company or the model articles with amendments.
Full names of proposed secretary, address, phone number, email address, identity type and number for an individual. Appointment of a Secretary is optional for small companies i.e. those having a turnover of less than N25, 000, 000 or companies without foreign shareholders or directors.
Details of the proposed director(s). A private company must appoint at least 1 director; however, a foreign-owned private company must appoint a minimum of 2 directors. Public companies must appoint at least 2 directors. The details include name, service and usual address, gender, nationality, date of birth, occupation, identity type and number.
The issued share capital of the company, the number and class of shares taken by each subscriber and the rights attached to them such as voting rights, dividend distribution, capital distribution in the event of winding up and whether the shares are liable to be redeemed or not. The minimum is N100, 000 for a private company and N2, 000, 000 for a public company.
Name and address of the shareholders(s) or subscriber(s). A local company can maintain a single shareholder, also where a foreign registered company is going to be a shareholder of a Nigerian subsidiary company, such a company can be the sole shareholder too. If the shareholder of a private company is going to involve individual foreigners, there must be a minimum of two shareholders
Details of Person(s) with Significant Control (PSC) in the company, whether individual or legal entity. Currently, the shareholder(s) must be the PSC provided such a shareholder has a minimum of 5% of the company
STATEMENT OF COMPLIANCE PAGE: This is usually filled by the company secretary or the person whose User log-in details have been used to process the registration.
PAYMENT OF REGISTRATION FEE: After the above has been done, the next step is to proceed to paying the CAC fee and stamp duty fee to the Federal Inland Revenue Service (FIRS) in accordance with the share capital of the company.
Note, where a lawyer or CAC accredited agent has been hired for such a process, the service fee or professional fee will also be paid.
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
E-MAIL: chamanlawfirm@gmail.com
Tel: 08065553671, 08024230080