A limited liability company is a body corporate or an incorporated business organization registered under the companies act. It is a legal entity which means the business is separate from its owners. All companies, whether a private company limited by shares, private unlimited or a company limited by guarantee, must be registered in accordance with the Companies and Allied Matters Act (CAMA), which is the principal law that regulates companies in Nigeria. The requirements and process for registering a company in Nigeria are pretty simple and not complicated. The Corporate Affairs Commission (CAC) is in charge of the registration of a company in Nigeria.
The age limit for people who are interested in registering a company is not less than 18 years and a minimum of two people will be required to register. The only time a person less than 18 years is allowed to register is when two or more adults are involved in forming the business.
The requirements to register a company
- The applicant is expected to choose two names as a proposition for the company name. Once this is done, the CAC will search its database if the name is available or if similar names already exist.
- The applicant is then expected to choose the type of company to be registered with. The available types include private limited company or private unlimited company or company limited by guarantee.
- The business Objectives must be provided, and the details on the company intend to engage in.
- The addresses of the shareholders.
- The profit-sharing formula of the company share among the shareholders
- Copies of the means of identification of 2 directors will be required; the means of identification can be a voter’s card, national ID, driver’s license or international passport.
- The particulars of the company secretary, it permits one of the directors to act as the secretary.
- Details of each of the shareholders of the company such as names, occupation, residential address, email address, mobile phone number and means of identification such as driver’s license, international passport or national identity card. The directors can also be listed as shareholders as well.
- It is important to provide the Memorandum and Articles of association of the company that is to be registered. This is usually drafted by a Legal practitioner.
- Steps to register a Limited Liability Company in Nigeria.
Filing Fees required
Applicants have to pay a filing fee to the CAC. And they will pay stamp duty to the Federal Inland Revenue Service (FIRS).
Once the payment is made, the applicant will be required to fill and submit the Form CAC
- Availability search and reservation of name and Form CAC
- Pre-registration form alongside the evidence of payment and all the incorporation documents.
The application can be done online on the CAC’s online portal by an individual applicant or through a CAC accredited agent. The services of a legal practitioner will be required for attestation even if an applicant decides to commence the incorporation by himself or herself.