A private limited company (LTD) also known as limited liability company is a privately owned business entity which has several limitations on their shares. In this article, we will be telling you the Requirements for starting a private limited company.
Such limitations include limiting the owner’s liability to their shares, limits the total number of shareholders to 50. It also restricts shareholders from trading shares publicly.
The LTD is a legal entity on its own. It is separate from its owners – the shareholders.
It is by far the most commonly registered business in Nigeria. This should not be a surprise because it is simple to run.
The personal possessions of a shareholder in LTD are separate from the company’s except the owners use those properties as collateral to secure the business during borrowing.
Requirements for starting a Private Limited Company (Ltd)
- The company must have a registered office in Nigeria
- The company’s name must not be exactly identical to any other company’s name currently in the registry of the Corporate Affairs Commission
- At least twenty five per cent of the authorised shares must be allotted at incorporation
- At least two people above the age of 18 must subscribe to the memorandum and articles of association.
- The total number of members in an LTD company must not exceed 50.
- The authorised share capital shall not be less than 10,000
Check our other post on Requirements for registering an LTD company in Nigeria to see all you need to register you LTD company.