Both local and foreign owned companies in Nigeria are registered via the same procedure. The only difference with the latter is that, the foreign owned company should be registered with a minimum of N10 Million share capital. The advantage of this is that the company will be able to obtain the expatriate quota required to obtain work permits for its foreign employees including directors.

Types of Companies in Nigeria

There are different types of company formation allowed under the Nigerian company law. For an entrepreneur, a private limited liability limited is the best form of company to register in Nigeria, given its various benefits and straightforward registration procedure. Be that as it may, the following are the types of companies that can be registered in Nigeria:

1. Private Limited Company
2. Companies limited by guarantee and
3. Unlimited Companies.

Any of the three types of companies may be registered either as a private company or public company. Nevertheless, registration as a public company has its ups and downs. Therefore, practically, the Corporate Affairs Commission (CAC) has stated the four types of companies that may be registered in Nigeria:

1. Private Limited Company (LTD)
2. Public Limited Company (PLC)
3. Companies limited by guarantee and
4. Unlimited Companies.

It is noteworthy that most of our clients opt for a Private Limited Liability Company registration. A private limited liability company has several advantages, which include but limited to perpetual succession, limited liability, and separate legal personality. Above all, it is the only form of company that can easily and be swiftly registered in Nigeria.

As for the Public Limited Company, the high threshold statutory requirements attached to its formation make it unattractive for individuals starting a new venture. In addition, public limited liability companies are subjected to various external laws for it to operate.

With respect to the Company limited by guarantee, it can only be set up with the approval of the Attorney General of the Federation. Although a company limited by guarantee may also be used for profit, it is seldom used as profit-oriented in Nigeria, but rather for a special purpose such as corporate social responsibility or charity. An unlimited liability company on the other hand may should be used to represent a  parent company desiring to have a subsidiary with unlimited risk.

Requirements of a Private Limited Company

• Minimum of 2 directors – a single parent company or foreign company seeking to register a subsidiary in Nigeria may nominate two persons as directors of the new company or subsidiary.

Documents and Particulars required

• Name of the proposed company (two to four names are to be submitted by the applicant: the proposed name of the company and  alternative names)
• Objects of the proposed company (summary of the activity or business the company intends to engage in).
• Names, addresses, and email of the shareholders( the shareholders can also be the directors
• The ratio of the company shares among the shareholders.
• Names, addresses, and emails of the first directors of the company (the same shareholders are qualified to also be directors).
• Copies of the means of identification of the shareholders and directors, such as driver license, international passports e.t.c
• Duly verified particulars of the director and statement of share capital
• Duly stamped Memorandum and Articles of Association

Procedure for company registration in Nigeria

• Registration through a registered lawyer is mandatory.
• The availability check and reservation of the name of the proposed company must be conducted with the Nigerian company’s registration agency, Corporate Affairs Commission (CAC).
• The legal practitioner prepares the necessary incorporation documents and completes the incorporation forms obtained from the CAC.
• The individual completes all the incorporation documents.
• The payment of the prescribed fees will now be duly made and the incorporation documents immediately stamped.
• The stamped incorporation documents will now be duly uploaded into the CAC online portal again for the final review of the commission.
• If all the incorporation documents are well completed and executed, the commission will incorporate the company and issue an incorporation number immediately.
• Certificate of Incorporation and the Certified True Copies of the other documents will be issued by CAC and received by the legal Practitioner, in less than 48 hours after the company is duly incorporated by CAC.

Cost of Company Registration in Nigeria

The cost of company registration in Nigeria depends on the number of the share capital of the proposed company to be registered. The higher the share capital of a company, the higher the filing fee and stamp duty payable to the government.

The professional fees that is charged by us for processing the registration is cost-effective and competitive.

Business Name and Incorporated Trustee Incorporation in Nigeria

Besides the private limited liability company and the three types of companies stated above, there are other forms of incorporation that can be conducted with the CAC.

 These types of incorporation include business name registration-which is suitable, for small-scale business owners, and does include separate legal personality and Incorporated Trustees, also known as Non-governmental Organization(NGO), which is relevant for the religious organization, social clubs, and charitable foundation.

If you are unsure of the form of Registration to proceed with, our Consultants are always ready to assist you. You can be assured that we will stick with you from inception till you receive your certificate.

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