Incorporating a company in Nigeria is simple and straight forward. We intend making this easier by compiling the simple process and requirements for incorporating a private company in Nigeria. Unlike most of the information you read online and tabloids,on this subject, the authors make Nigerian company formation look seemingly complex by writing out a long list of “legal” requirements difficult to understand by the average reader.
However, it is advisable you consult a specialist such as a Lawyer who will assist you in the entire formation process.
The Companies and Allied Matters Act (CAMA) recognises 6 corporate structures in Nigeria:
1. The Business Name
2. The Private Company Limited by Shares.
3. The Public Limited Company
4. Unlimited Company
5. Company Limited by Guarantee; and
6. Incorporated Trustees.
For the purpose of this write up, however, we will be writting about the process of Incorporating a Private Company in Nigeria.
REQUIREMENTS FOR INCORPORATING A PRIVATE COMPANY IN NIGERIA.
Steps for incorporating a new company at the Corporate Affairs Commission, can be summarised in the following 10 steps:
1. Submission of the proposed Company Names to the CAC. This is the first step in the entire process. The promoters of the company must decide on a company name and submit for approval. The government officials reserve the right to approve or deny company names submitted for a number of justifiable reasons – availability, suitability, legality, similarity, etc. It takes an average of 5 business days to get availability results.
2. Details of Directors. Long story short, you will be required to provide the biodata of the Directors of the proposed company. These information include: Full Names, Residential Address, Nationality, Age, Valid Identification Document and Signature of the Directors. The minimum number of directors for a private company is 2 and maximum is 50. There is no maximum for public companies. There are statutory requirements for being a director, one of which is that the directors must not be less than 18 years old.
3. Shareholders/Subscribers. The legal minimum number of shareholders in a private company in Nigeria is 2 and a maximum of 50. The shareholders subscribe to the memorandum and articles of association and are alloted shares in the company.
PS – the shareholders can also double as the directors of the company.
4. Appoint a Company Secretary. Every Nigerian company must appoint a Nigerian Company Secretary, as it has become a legal requirement. The company secretary of a private limited company needs no formal qualifications. It is the directors responsibility to ensure he/she has the appropriate knowledge and experience to act as a Secretary of the company. The company secretary could be an in-house person or an outside consultant. Some of the roles of a company secretary include:
a. Maintaining the Statutory Registers;
b. Liaison between the company and the CAC and other relevant government agencies;
c. Providing members and auditors with notice of meetings.
5. Registered Address of the Proposed Company. The company must have a Nigerian business address. This requirement needs no much explanation and not debatable either.
6. Core Areas of the company’s business activities (Nature/Objects of company). Nigerians and Non-Nigerians are allowed to carry on all forms of business provided it’s legal and not in the “negative list”. If the company will engage in specialist services (Hospital, Consultancy, Schools, Media & Advertising, etc), the directors may need to provide an evidence of professional proficiency. E.g. Certificate of a professional body/trade association, Academic Certificate, or both.
7. Valid Identification. Although I have stated this requirement earlier. It is worthy of mention here again. A photocopy of Identification of all the directors is required. (e.g. National ID card, Data Page of your National Passport, Voter’s Card or Driver’s License).
8. The Company’s Share Capital and Allotment. In simple terms, the share capital of a company (usually in monetary terms), is the amount of capital the subscribers have to carry on the business. The minimum share capital of a private company must not be less than N10,000. However, for economic reasons, it is advisable that an average Nigerian company incorporate a N1,000,000 share capital company. A company’s share capital is also industy-dependent. For example, advertising agencies must have at least N10 million as share capital. The law also stipulates a minimum of N10 million share capital for a Nigerian company with foreign ownership. Your regulator or adviser should advice you appropriately. A minimum of 25% of the authorized sharecapital must be subscribed and paid for.
Once the issue of share capital have been decided on, then the subscribers must also decide on alloting the shares. If there are 2 persons that formed the company, they could share it 50% each.
9. Draft the Memorandum of Understanding and Articles of Association (MEMART). This is a legal document that spells out the business objectives and the framework on which the company intends to run its business within the acceptance of the law. This legal document also shows the particulars of the shareholders and their shares allotment.
10. Payment of Stamp Duty and Statutory Filling Fees. The total fees payable to the Stamp Duty office and the Corporate Affairs Commission is dependent on the company’s share capital.
These are the basic requirements for incorporating a private limited liability company in Nigeria. However, EXPATRIATES are subjected to additional requirements and laws – Nigerian Investments Promotion Act, Immigration Act, Investment and Security Act, and Foreign Exchange and Monitoring Act.
Duration of Incorporation at the Corporate Affairs Commission
As at the time of writing this blog post, the average turnaround time to receive a Certificate of Incorporation and Certified True Copies of your documents at the CAC is 3 weeks.
Come and setup a company in Nigeria – Africa’s most populous nation – a business destination for many investors.
To incorporate your company, you can contact us to facilitate this for you, email: email@example.com or call (+234)080-9502-9999
Passionate about growing your business
Welcome to FirstBank SME Connect. At FirstBank, we are passionate about helping your business grow on all fronts. Beyond financial support, we offer you strategic advisory services, business seminars periodic updates as well as information that will guide you in growing your business. Our scope of SME services cover small/medium scale manufacturing firms, merchants (suppliers, distributors etc), professional firms(law, consulting, audit etc), agricultural , Churches, Mosques, NGO’s whose annual debit turnover is between N5M and N500M.
Small and Medium Sized Enterprises (SMEs) as defined by the Central Bank of Nigeria (CBN) are economically independent companies with about 11 to 300 employees and an annual debit turnover of between N5million to N500 million.
The main factors determining whether a company is an SME are::
- Number of employees
- Annual debit turnover
Why are SME important?
SMEs are responsible for the majority of new jobs created in Nigeria and they are crucial to Nigeria’s success in the global economy.
- For Government, SMEs, contribute to wealth creation and generate tax revenues
- In business, SMEs represent an important source of innovation
- In the society, they are an important source of employment
- They drive consumption at the lower levels because they operate in every sector of the economy
- SMEs have extensive local knowledge of resources, supply patterns and purchasing trends
- SMEs constitute an important source of local supply and service provisions to larger corporations.
- They make significant contribution to the revenue profile of most financial institutions
- SMEs stimulate growth and development within the economy
How do you classify an SME?
SMEs can be classified as follows:
- Small/medium scale manufacturing firms.
- Small/medium retail merchants (suppliers, distributors, etc.)
- Professional firms (law, consulting, audit, etc.)
- Small/medium scale agricultural firms.
- Churches, mosques and NGO.
Key challenges faced by SMEs in Nigeria
- Poor capital structure
- High cost of production
- Limited access to long term funds
- Poor business continuity/succession plan
- Weak value chain: supply, distribution, logistics, time to market etc
- Poor managerial and technical skills
- Lack of access to international markets
- Sole Proprietorship
- Labour intensive production processes
- Keyman risk
How does First Bank SME Connect support SMEs in Nigeria?
- First Bank is committed to providing the Nigerian SME’S with the support needed for growth
- SME Connect is created to bring under one umbrella relevant resources, products and services aimed at helping SMEs in Nigeria.
- First Bank has tailor-made products targeted at the specific needs of SMEs in Nigeria. These loan products have been designed for financing the activities of Small and Medium Enterprises (SMEs) under the U-First Scheme.
- First Bank also provides Business Advisory and Support services and business oriented credit access
- Financing structure
- Access/Availability of Raw Materials
- Sales/cashflow projections
- Business Strategic Plan
For inquiries, financing and support, contact an investor.ng Financial consultant at: firstname.lastname@example.org or call (+234) 080-9502-9999
Over the years, the Etisalat group has grown unrivaled capabilities to develop and deploy effective telecommunication services to
the business market. This is why across the countries where we operate, our brand has become synonymous with premium telecom solutions and excellent customer service. The uniqueness of our offerings is built on the following values.
- In-depth appraisal of Corporate operations, cost drivers, future growth areas, etc.
- Customized solutions based on need, strategy thrust and existing gaps
- Regular evaluation/update of deplored solutions
- 24/7 support and Account management
- Corporate Solutions
Classic Postpaid :
Classic postpaid is a fully packed post-paid package from Etisalat, the innovative network that cares. The package is designed for our corporate, SME and high net worth individuals. Subscribers to this package only pay for what they use out of their credit limit.
The advantages of belonging to Elite Classic are myriad. From simple benefits such as an easy-to-understand contract package to a whole world of exclusive handsets and SIM options that make the world your playground, Elite Classic is tailored to fit your vibrant, executive and busy lifestyles.
Corporate Data :
is our data solution designed for small and medium enterprises, high value clients, corporate clients and large organizations. Subscribers will get a monthly push of the Data and SMS bundle they subscribe to and will be billed based on the MMP selected and additional usage from the credit account if applicable. The amount in the credit account will be based on the credit category selected at provisioning. Data usage outside the bundle will be billed at the standard Elite World Post-Paid rate of 15K/KB .
BlackBerry Enterprise Server Express :
Get more out of your BlackBerry by using a BlackBerry Enterprise Server Express
Works on any type of BlackBerry service plan (BIS, BES and BES+)
FREE software download including FREE CALLs
Includes the latest end user features for new 5.0 OS platform
Supports Microsoft Exchange (2003, 2007, 2010) or Windows Small Business Server (2003, 2008)
Provides many features of BES, with 35+ IT policies for enterprise users
– Supports up to 75 users when installed on the mail server eliminating the requirement to purchase additional hardware
– No need to upgrade your mail server to get the BlackBerry Enterprise Server Express wireless experience .
The Toll Free Service :
is a corporate client/SME only postpaid product offered by Etisalat where the subscriber pays for calls made to his toll free line. Boost response rate for direct marketing and Make your number easier to remember e.g. 0809 9JA BIZZ is a corporate client/SME only postpaid product offered by Etisalat where the subscriber pays for calls made to his toll free line. Boost response rate for direct marketing and Make your number easier to remember e.g. 0809 9JA BIZZ
Provide better customer service
Attract more customers by giving an air of professionalism
Increase confidence in the security of financial transactions with your company
It is a service available to clients who want customers to call them for free to inquire information.
The Bulk Messaging Solution :
It is to cater to the need for an automated and robust bulk messaging service within etisalat, by enterprise users, by Mobile Application Service Providers (MASPs), and by end users (etisalat subscribers). It provides an easy to use and flexible interface for bulk messaging to Etisalat customers. Bulk Messaging Platform will support following message formats for sending bulk campaigns or single messages and should be configurable.
• SMS • MMS • USSD • Flash Messages • Long SMS • OTA • Email • WAP Push
prepaid package is targeted at Small and Medium Enterprises with a minimum of 3 staff.
You and your emplyees can enjoy free calls and sms to one another within your group, low international call rates and free internet on specific easybusiness bundle packages.
Easy Business is tailored to fit your business and busy lifestyles and provide huge savings on your communication cost. Get on board and enjoy this exciting offer from Etisalat.
(etisalat Mobile Advertising) is a free, permission-based, preference, targeted mobile advertising service. It offers subscribers valuable information on discounts, deals, news, events, and freebies from Brands they are interested in. EasyAdz is absolutely free to subscribers, thus subscribers opt-in, receive Ads or opt-out for free. The channels for mobile advertising can be SMS, MMS, USSD, Web, Wap, Audio, Apps, Mobile TV and Video.
Business Ring Back Tune :
Business RBT is a marketing and communication channel designed for companies and organisations to advertise their products and offerings while potential customers wait for their calls to be answered by the company’s staff.
Number Proposition :
Distinctive and unique number made to be memorable for the businesses main contact line e.g. 08092000000 or 0817300002- 309
Memorable, unique identifier, increased customer awareness
The Elite World SME prepaid package is targeted at Small and Medium Enterprises with a minimum of 3 staff.
This package is bundled with 500 FREE minutes and 100 FREE SMS monthly within a selected Closed User Group (CUG) and a national call rate of 25k/sec to all networks in 9ja. To enjoy the CUG package, all an SME needs to do is purchase a minimum of 3 Elite World SME prepaid lines and pay a monthly commitment fee of N1,000 per line. The default tariff of 50k/sec to all networks will apply following any failure to pay the monthly upfront commitment of N1,000. Subscribers will also enjoy calls to 5 international destinations (US, UK landline, China, India & Canada) at 20k/sec.
This package also has other unique features, they include:
VIP caller service – A free service which allows you restrict specific numbers from reaching your mobile line. This feature comprises of two unique lists, the White List & the Black List, the white list service allows you receive calls only from people in a pre-selected group while the black list service allows you receive calls from everyone except the pre-selected black list group, when you blacklist a number, it will not be able to reach you
Credit transfer – This service allows you transfer airtime from your phone to other Etisalat lines
Recharge others –This service allows you recharge other Etisalat lines from your Etisalat SME prepaid line
Elite World SME prepaid is tailored to fit your business and busy lifestyles and provide huge savings on your communication cost. Get on board and enjoy this exciting offer from Etisalat!
Welcome to the Elite World SME Prepaid Package from Etisalat.
Elite World SME prepaid is a cost effective package for Small and Medium Enterprises and has been specifically designed and packaged to meet the unique needs of Entrepreneurs and business customers.
For more enquiries, please send us an email on email@example.com
Kwara State is located in north western Nigeria. The main ethnic groups are Fulanis, Nupes, Barubas and Yoruba. The state is hugely involved in agriculture and the principlal crops are: Cotton, Cocoa, Coffee, Kolanut, tobacco, Benseed and Palm produce. Mineral resources abound in Kwara state namely limestone, marble, feldspar, clay, kaolin, quartz and granite rocks.Kwara State is one of the most peaceful states in Nigeria and with Ilorin as the state capital, its borders both Niger and Kebbi States in the north while it shares border with Kogi, Osun, Oyo and Ekiti States in the south. Kwara state has a very rich and highly interesting cultural heritage, Among these are Durbar associated with Edu. The durbar is usually held in honour of a new Emir or chief, to welcome august visitors and on muslim festivals. There is also the Pategi Regatta which is an annual festival featuring boat displays, fishing and swimming competitions.
TOURIST ATTRACTIONS IN KWARA STATE
It possesses several fascinating historical and cultural monuments, which include the Esie Stone images at Esie, in Irepodun L.G.A. of the state. The stones were said to have been discovered in the 17th century. Others are the spectacular Owu Falls at Owa Kajola, in Ifelodun Local Government Area; the remains of Mungo Park’s wrecked boat – the `D Spring’ and Mungo
Park’s Monument both at Jebba, Okuta Ilorin, from where the capital was derived, the Jebba Dam which is one of the major sources of hydro-electric.
OWU WATER FALLS
This is one of the highest and most spectacular waterfalls in West africa and is sometimes referred to as ‘WONDER IN THE WILDERNESS’. It cascades from a height of about 120 meters to form a pool of ice cold water at the base. The site has a beautiful landscape and offers visitors a refreshing atmosphere.
This is held annually at Shao, in remembrance of Awo goddess. During the festival all marriageable girls are given out in marriage in one day.
This is held in remembrance of the dead ancestors hold every year among the Igbomina people. It usually features dancing by masquerades for five to nine days.
ESIE STONE IMAGES
These stones were said to have been discovered in the 17th century.
Other places of interest OWE KAJITA FALLS
TOMB OF PAST EMIRS
UBO AIYEGUN LAKES
REMAINS OF MUNGO PARK’S WRECKED BOAT
For your accommodation, below here are the Hotels in Kwara State:
13, Orota Way,
Circular Hotels Ltd.
New Yidi Road,
Kwara Hotel Limited
9A, Ahmadu Bello Avenue G.R.A.
Tel: 031-221490-94, 221698-99
White House Hotels
Km 5, Lagos Road,
Box 1273, Ilorin.
Basin Road Hotel
Fate South, P.O. Box 1273, IIorin.
Grand Guest House
Lafun Guest House
G.R.A. Omu-Aran, Irepodun L.G.A.,
Regatta Palace Hotel
14, Reservation Road, IIorin.
Western Reservoir Road, IIorin.
225, Umaru Sao/Lagos Road,
Sawmill, (West), P.O. Box 744,
Plot 6119, Western Reservation Rd.
For more information, contact us.
The Nigerian Stock Exchange (NSE) yesterday launched a whistle-blowing portal (NSE X-Whistle) that will enable operators, investors and other stakeholders, disclose information aimed checking market infractions and protecting investors.
Speaking at the launch of the initiative in Lagos, General Manager Legal & Regulation Division, Ms.Tinu Awe, said it is part of the five pillars of the NSE management meant to transform the exchange into a world class market.
According to her, the X-Whistle is a secure, online portal through which information can be disclosed to the exchange, adding that a whistle blower may not necessarily be directly or personally affected by the matter being reported.
She said through the X-Whistle, the NSE protect investors’ interest in the market.
She said the introduction of X-Whistle will bring more integrity, transparency to the market and make more people feel confidence to invest in it.
“The portal will permit the whistle-blower to perform a status check on the matters they have reported on X-Whistle. The whistle blower rarely has a personal interest in the outcome of any investigation into violations disclosed. As a result, the whistle blower is not expected to prove his or her case, rather he or she raises the concern so others can address it,” Awe said.
She explained that in order to enhance the exchange’s market surveillance capacities, the NSE recently joined International Surveillance Group (ISG) as a means of leveraging global best practices and sharing of critical market trends.
Awe called for support for the initiative, saying “If the exchange is not aware that violations have occurred, are occurring or about to occur, it cannot take appropriate action. But actions taken on such information lead to the promotion of investor confidence in the capital market.”
Meanwhile, trading at the stock market closed in the red as investors adopted cautious trading ahead of the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) meeting in Abuja. The NSE All-Share Index declined 0.50 per cent to close at 37,601.53.