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What You Need to Know
Business Establishment in Nigeria
Nigeria is essentially a free enterprise country, subject only to regulations as are necessary for the national interest.
Registration of companies in Nigeria is a Federal law. Thus, company registration processes in Nigeria are national and the same procedures apply to all parts of the country. The registration of a company is regulated by the Companies and Allied Matters Act Chapter 59, Laws of the Federation of Nigeria (CAMA). The authority charged with the responsibility of registering companies is the Corporate Affairs Commission (CAC). The CAMA provides, with certain exceptions, that no foreign company shall carry on business in Nigeria unless it is incorporated in Nigeria.
- The three primary types of incorporated companies are:
unlimited liability company, company limited by guarantee and company limited by shares. The major disadvantage of a company with unlimited liability is that its members (shareholders) are personally liable for its debt. A company limited by guarantee limits the liability of its members to the amount of their respective guarantees but this type of company is typically not for commercial purposes. The most common type of company for investment purposes is the company limited by shares in which liability of the members is limited to the amount, if any, unpaid on the shares they hold respectively.
- To register a company limited by shares in Nigeria, there must be a minimum of 2 shareholders and 2 directors. The minimum share capital for a private company limited by shares is N10,000 while that for a public company limited by shares is N500,000. ...
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