Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Nigeria
Nigeria, with its middle-income, mixed economy and emerging market is slowly seeing an increase of start-ups today. But, due to capital constraint, many entrepreneurs prefer to run an unregistered business as it helps save cost. The forecast showed that Gross Domestic Product of Nigeria grew 1.9% in 2018 compared to 2017. This rate is 11-tenths of one per cent higher than the figure of 0.8% published in 2017. Nigeria’s relative stability, rapidly growing consumer class, favourable demographics, and foreign investment-friendly operating environment show that the county is very much open for business.
Benefits of Registering a Company in Nigeria
For potential investors who are thinking of leaping into the Nigerian market, some of the benefits that lie in store for you when running a business in this country include:
- A unique identity and protection.
- Safeguard from personal liability.
- A more serious look and attracts more customers.
- Easier access to bank loans and investment from investors.
- Continuing business in case of demise and your nominated next of kins can inherit the business legally.
- Right to use government benefits like mortgages and tax incentives.
The Challenges of Doing a Business in Nigeria
The World Bank’s Ease of Doing Business Report ranked Nigeria 169th in the World out of 189 countries in 2016 with 80% of new businesses and startups in Nigeria failing within the first three years. Some of the challenges of doing business in Nigeria can be access to capital & credit. Lack of financial capital is the single most significant challenge when it comes to company registering in Nigeria.
In Nigeria, having access to continuous electricity and a power supply is extreme distress for business in Nigeria which is why alternative power source such as generators is so common.
Next, are the Government regulations which are meant to keep businesses under control and ensure they follow a universal rule. The law that guides doing business is known as Companies and Allied Matters Act (CAMA).
Corruption and bribery are still severe obstacles in Nigeria. In 2013, Transparency International’s corruption perceptions index ranked Nigeria 14 most corrupt country in the world.
Steps to Registering a Company in Nigeria
When registering a company in Nigeria, you will first have to determine what legal entity you want. The most common legal entities in Nigeria are registered business name (usually for sole proprietorships and partnerships), limited liability company (which can be private or public) and incorporated Trustees or Company Limited by Guarantee (for non-profit organisations)
We then move on to the next stage which is deciding on a name. The first step is to perform a name availability search and reservation at the Corporate Affairs Commission (CAC) and complete your CAC documents.
Once you have completed the documents, they will be sent to the FIRS for assessment and stamping.
The last stage will see the documents submitted to the CAC for verification and filing. If there are no complaints, you can expect to receive your original certificate of incorporation and certified exact copies of any CAC documents paid for in a few weeks.
For more information and guidance on how to get started registering a company in Nigeria, contact us at 3E Accounting for further assistance.
For request of quotation and more information about Register Company in Nigeria, please email us at email@example.com and we will promptly reply within 24 hours.