How to register business in Nigeria
Welcome to our new series, on how to do business in Nigeria. As an international shipping company, we have taken it as a responsibility to enlighten the business-minded people: both young and old on the best way to start a business and maintain great sustainable models. In this article, we will be talking about how to register business in Nigeria. We will focus on what you need to do and consider before venturing into the world of business and entrepreneurship.
However, I want you to know that starting business and ventures are not for faint-hearted people, people that cannot take risks (it could be calculated, systematic, blind or uncalculated). Business is all about risks, trust, and foresight. An Entrepreneur must be ready to take risk of huge loss, debt, and marginal profit at any time. The beauty of it is that, if there are relevant (which must be timely) values, there is high prospect of profits. The services must focus on the needs of people at particular locations.
The new business models of any entrepreneur must focus on the People, Planet, and Profit. It means any service you have based on the Sustainable Development Goals of the United Nations for 2030 and beyond.
Let us dive into our topic of how to register business in Nigeria. We will look at what you need to do, and how to go about its registrations:
Registrations with the Corporate Affairs Commission (CAC) in Nigeria
Corporate Affairs Commission is a body of the Nigerian Government responsible for the regulation and management of companies in Nigeria. It was introduced in 1990 with the passing of the Companies and Allied Matters Act. The has been amended to produce the Companies and Allied Matter Act (CAMA 2020).
Below are the issues you need to consider when registering with Nigeria Corporate Affairs Commission.
- Services to render to the public
- Getting a brand Name
- Working team
- Shareholders’ Capital
- Government Policy and Licences
Services to render to the public
As a business person, What should be the first idea to start a business is what services am I offering the public? This will help to know who will the buyers, end-users, and customers of the services or products. The Memorandum and articles of association will state the objects of activities for the company to be registered. You need to know the type of business you are to do. This will help to know the requirements for such services.
Getting a brand Name
Brand name is one of the most powerful assets in building up business. You have to choose name that is unique, easy to remember and pronounce and that can be defended anytime. This is the major aspect of registering and building your business globally. You need to check if the name you intend to use is available or if someone has chosen the brand name. You can check your name availability on the CAC portal free of charge. This will help get you to prepare for the tasks ahead in building a great business empire.
Choosing the right working team to be on your CAC documents is one of the decisions you need to make. It could be your family members, friends or your business associates. It can be with the functions of directors or shareholders. This aspect of the association will determine the future of your business. You need to choose the right team to work with and it has to be chosen carefully.
This is foresight worth of the company. Your share value will depend on the type of business you are doing. You need to study the minimum threshold capital by Corporate Affairs Commission to know the least shares you can have to start the company. It does not mean you should have the funds in the bank account as at the time you are registering the business. One thing that is sure is that you will need to pay the VAT for the value of the shares; I guess this is test by Nigeria Government to know how serious you are to start the business.
Government Policy and Licenses
Policies by government affect the sustainability of some businesses. There are some businesses you can't run as an individual, it has to be a group of people. There are some that need special skills licenses and certifications. You need to find out a few of the permits, licenses your intended business required before heading forward to pay for brand name reservations with CAC.
Are you an importer or exporter and you have issues with CAC registration? Distinctcushy Global Freight Company can guide you through the hustle.