Introduction:
When starting a business in Nigeria,
it is essential to register your company with the appropriate government
agency. The Corporate Affairs Commission (CAC) serves as the regulatory body
responsible for the registration and management of companies in Nigeria. In
this blog post, we will delve into the different categories of companies
recognized by the CAC, outline the registration requirements, and discuss the
associated costs.
1.
Company Categories:
The Corporate Affairs Commission recognizes various types of companies that
individuals can register. Here are the main categories:
a)
Business Name: This category is suitable for sole
proprietors or small businesses with a single owner. It is the simplest and
most common form of company registration.
b)
Private Limited Liability Company (Ltd):
This category is suitable for businesses with multiple shareholders or
partners. It offers limited liability protection, separating personal assets
from business liabilities.
c)
Public Limited Liability Company (Plc):
This category is ideal for larger businesses planning to raise capital through
public investment. It is subject to more stringent regulations and
requirements.
d)
Unlimited Company: This category does not impose
limitations on the liability of its members, making them personally liable for
the company's debts and obligations.
e)
Incorporated Trustees: This
category is specifically for non-profit organizations, charities, religious
bodies, and other similar entities operating for the public or social welfare.
2.
Registration Requirements:
a)
Business Name:
·
Proposed business name
·
Applicant's full name, address, and
occupation
·
Two passport-sized photographs of
the applicant
·
Valid means of identification
b)
Private/Public Limited Liability Company:
·
Proposed company name
·
Memorandum and Articles of
Association
·
Details of shareholders/directors
(minimum of two directors for private limited companies)
·
Registered office address
·
Means of identification for
directors/shareholders
·
Minimum share capital requirement
(₦10,000 for private limited companies and ₦500,000 for public limited
companies)
c)
Unlimited Company:
·
Proposed company name
·
Memorandum and Articles of
Association
·
Details of members
·
Registered office address
·
Means of identification for members
d)
Incorporated Trustees:
·
Proposed organization name
·
Constitution or Articles of
Association
·
Details of trustees and officials
·
Registered office address
·
Means of identification for trustees
and officials
3.
Registration Costs: The
registration costs for company registration with the Corporate Affairs
Commission vary depending on the company category and other factors. Here is a
general overview:
a)
Business Name: The registration fee for a
business name ranges from ₦10,000 to ₦20,000, depending on the authorized share
capital.
b)
Private/Public Limited Liability Company:
The registration fee for private limited liability companies is based on a sliding
scale of authorized share capital, ranging from ₦10,000 to ₦5,000,000. Public
limited liability companies have a fixed registration fee of ₦5,000,000.
c)
Unlimited Company:
The registration fee for unlimited
companies follows the same sliding scale as private limited liability
companies.
d)
Incorporated Trustees:
The registration fee for
incorporated trustees ranges from ₦20,000 to ₦200,000, depending on the
organization's authorized capital.
It's worth noting that these costs
are subject to change, and additional fees may apply for specific services,
such as name reservation or certified true copies of documents.
Name Sample:
1. Business Name:
·
John's Bakery
·
Smith & Sons Furniture
·
XYZ Trading Enterprises
·
Mary's Fashion Boutique
2.
Private Limited Liability Company (Ltd):
·
ABC Consulting Services Ltd.
·
XYZ Construction Ltd.
·
Green Energy Solutions Ltd.
·
Blue Sky Technologies Ltd.
3.
Public Limited Liability Company (Plc):
·
ABC Pharmaceuticals Plc.
·
XYZ Bank Plc.
·
Green Power Generation Plc.
·
Blue Star Airlines Plc.
4.
Unlimited Company:
·
ABC Law Firm Unlimited
·
XYZ Manufacturing Unlimited
·
Green Real Estate Unlimited
·
Blue Ocean Shipping Unlimited
5.
Incorporated Trustees:
·
ABC Foundation
·
XYZ Charity Organization
·
Green Environmental Society
·
Blue Education Trust
Please note that these are fictional
examples for illustrative purposes. Actual company names should comply with the
CAC guidelines for name availability and should not infringe upon existing
trademarks or intellectual property rights.
Remember to conduct a thorough name availability search before finalizing your company name to ensure it is unique and not already in use by another entity. It is always advisable to consult with a legal professional or directly contact the Corporate Affairs Commission for precise and up-to-date information regarding registration requirements and costs based on your specific business needs.
I want to register my Business START SCUML REGISTRATION
Social Plugin