Are you a business owner looking forward to registering your company in Nigeria? Do you know all that is required of you for the registration? Well if you don’t, then this article is for you. In this article, we will be telling you the Requirements for registering an LTD company in Nigeria
Registering a company in Nigeria today is not as complicated as it was several years back. In fact, it is pretty much a straightforward process now.
Once your company meets all the needed requirements like the number of persons in the company, age of the owner a good name, etc. you are good to go.
Also in this article, we will tell you about CAC, the body responsible for registering companies in Nigeria.
Corporate Affairs Commission (CAC)
The corporate affairs commission is the commission in charge of the regulation and administration of the registration of companies in NIgeria.
The National Assembly of the Federal Republic of Nigeria established the Corporate Affairs Commission of Nigeria in 1990. It is an autonomous body.
See ‘Companies and Allied Matters Act no 1 1990 as amended, now on Act cap C20 Laws of Federation of Nigeria’.
The minimum number of persons required to form a company is two (2). Moreover, the two persons involved should not be below 18 years of age.
There could be an exception for a person less than 18 years; that is when there are two or more adults included in establishing the company.
Registering your company falls under different categories such as:
– Private Limited Company (Ltd)
– Public Limited Company
– Sole trader
– Guarantee Company (not for profit)
See our post on the ‘types of Companies in Nigeria‘ to know the difference between these companies.
Requirements for registering an LTD company in Nigeria
What are the Requirements for registering an LTD company in Nigeria
1. Company name
First things first, choose two suitable names for the company. Afterwards, an availability check will be done on the CAC online portal to know if the name is not in use.
2. Address of the company.
Another detail you should submit is the office address of the company. Usually the address should be located in Nigeria.
3. Choose the company type
Choose the type of company you wish to register whether a private limited company, private unlimited company, etc. See our post on the types of companies in Nigeria to know the different types of companies.
4. Objective of the Business
It is important that you provide the objectives and business of the company. Obviously this should be a simple task, because you should have already have an objective before deciding to open a business.
The objective of the business should listed in the Memorandum of Association.
The share capital and shareholding formula among shareholders will be required.
6. Director’s Information
The registration process requires the particulars of at least two (2) Directors. These particulars inlcude:
A copy of their means of identification:
- National ID Card
- Voter’s card
- drivers’ license or international passport.
Particulars of the company secretary (One of the directors could act as Secretary)
Provide details of the shareholders of the company. Details 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. Note that the directors listed can also hold the capacity of shareholders in the company if desired.
A Legal Practitioner should draft a legal memorandum and Articles of association of the company. But the CAC has made available, a general MEMART which any new company can adopt.
How much it costs to register a Private Limited Company
|S/N||SUBJECT||FEES in Naira (₦)|
|1||Reservation of Name||N500.00|
|2||Registration of private company with share capital of N1million or less||N10,000.00|
|3||Registration of private company/Increase in Share Capital above N1million and up to N500million||N5,000.00 for every N1million share capital or part thereof|
|4||Registration of private company/Increase in share capital above N500million||N7,500.00 for every N1million share capital or part thereof|
We hope you find this article helpful. In our other post, we told you the Types of companies in Nigeria.