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Frequently Asked Questions: A-Z Of Company Registration In Nigeria - Business (2) - Nairaland

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Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by duabba: 9:23pm On Mar 27, 2009
@lawyer,

This your philantrophic gesture no be small sumtin. God bless thee!!
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by ollybosieb: 2:21am On Mar 28, 2009
Thanks lawyer,the information you shared was so helpful.

1 Like

Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Nobody: 6:45pm On Mar 29, 2009
Waoo! Mr. Lawyer, where've u been hiding with all of this practical infos, huh!

Anyways, kudos , nice Job. keep it up.

But i hope say Seun dey Pay You well. smiley cool
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by ajanaku1: 2:32pm On Mar 30, 2009
How much is it?
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by oludimuni: 4:23pm On Apr 02, 2009
Good You! What does it take to register an NGO. this including the cost.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Kay1kay1(m): 1:46pm On Apr 04, 2009
Thanks lawyer,fantastic presentation.CAC might not have patience explain the nitty gritty about company registration.Thanks a million.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by zicco84(m): 8:19am On Apr 05, 2009
Thanks Lawyer, you have saved us all a lot of hassles trying to get accurate information and explained in a very simplistic manner. I was at CAC Abuja recently trying to find out some of these Informations you just gave freely and it was frustrating, i ended up collecting the number of a lawyer i met there and we have been talking on phone. He keeps confusing me over the registration of a company and a sole proprietorship. Pls, you can you clarify that for us. What those it take to register a Sole Proprietorship?
Thanks for the time, money and effort you are putting into this! Your cup shall never run dry. Amen.

-Zicco
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by cleric(m): 6:53pm On May 02, 2009
@ Lawyer,
Ur contact cell fone number is being picked by a lady who has no idea of a lawyer using the line. Kindly oblige us with ur contacts plz,.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 4:11pm On May 04, 2009
You can also get me on 08077943514. Sorry for that. I guess it was network problems.

Cheers
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 5:10pm On May 06, 2009
zicco84:

Thanks Lawyer, you have saved us all a lot of hassles trying to get accurate information and explained in a very simplistic manner. I was at CAC Abuja recently trying to find out some of these Informations you just gave freely and it was frustrating, i ended up collecting the number of a lawyer i met there and we have been talking on phone. He keeps confusing me over the registration of a company and a sole proprietorship. Pls, you can you clarify that for us. What those it take to register a Sole Proprietorship?
Thanks for the time, money and effort you are putting into this! Your cup shall never run dry. Amen.

-Zicco


lol

I agree that some lawyers can be very confusing atimes and tend to mislead people by over inflating the prices and not giving a valid break down of the fees but then again,its the perogative of that lawyer to tell you his own fees. We are all different in our approaches, so bear with him wink

Anyway you asked the difference between a sole proprietorship and company registration. I will break it down as simply as i can

A sole proprietorship is a one man business and basically put, you handle the whole business your self and you get all the losses and all the profits. The advantage of it is that you control everything yourself and you can use your limited funds to achieve what you want, when you want.

The most commonly used way of starting a sole proprietorship business is by registering a business name and that business name usually ends with Ventures, & Sons, & Co, Enterprises etc. It is quite cheap to register and if possible, you can go to the CAC yourself to register it because its very very cheap but i wont state the price.

Most businesses that engage in business name registeration include hairdressers, caterers, artisans, dealers in import and export etc. In short it is a one man show.

The disadvantages of a business name or sole proprietorship far outweighs a company registration or a company limited by shares because:

1. You have that disadvantage of not competing with the big boys i.e, if there is a big business deal and you are quite knowledgeable in it and need to be involved, your business name registration wont help you because they will only deal with people who have their companies registered.

2. Sometimes in life, 2 heads are better than one, so having 2 or more partners can help the business grow both in terms of continuity and finance

3. Also sometimes, you need other people's money to invest in your business to make it larger and no one would invest in a business that isnt registered as a company.

4. Sometimes the banks can be very nasty when you want to open an account and demand explicitly for you to present your company certificate before you open an account.

5. Also securing loans with a business name could be very cumbersome because the banks or lender needs to know that your company is viable and in the event of it failing, there are other people to hold, but if it is a sole proprietorship, if there is a default, they will hold only that person liable but as a company, the bank cannot start pursuing the directors to seize their personal assets only the assets of the company and if your personal asset is worth 50 million Naira and the company's asset is worth N100,000 they cannot touch your N50Million except they go through the courts to start filing this motion or that law to pierce the corporate veil to hold you liable personally which is very very difficult for the banks to do in most cases.


6. People would want to buy shares in the business as the business makes money and thats the only way you can reap triple the money with you over pricing your shares and making more money. Can you imagine First Bank & Sons or Zenon Oil Ventures making that kind of money?

In short there are so many numerous advantages of a registered company over forming a business name and the ultimate example is when you register the business name for cheap today and tomorrow you are in a desperate need to have a company, you will still have to register that company again hereby wasting money when you ought to have done it earlier and with the rising cost of inflation, you can never tell how much it is going to increase when you are finally ready.

So in summary, if you want to start small and remain within that cubicle of success, a business name registration is good for you, but if you want to be the next Dangote, Folawiyo, doyin Abiola etc, a company registration is what you need to set you in the right parametre.

Its a choice! Cheers!

3 Likes

Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by marmaduke: 4:29pm On May 11, 2009
Hi lawyer,

Thanks again for all this vital information you have stated regarding registration of companies. In fact, i dont know what i would have done without you. Every now and then these lawyers dont explain it the way it should be and it ends up confusing alot of people because it is something every future business man must do to provide for his own financial freedom. But i want to ask you for a favour on behalf of most nairaland members.

Having gone this far to educate us for nothing without expecting any reward, is there a chance you could help us especially young nairalanders register a company within budget? Alot of us would really want this kind of thing but the financial situation is making it difficult to gather all the fees together. Can we persuade you to do the registration within our budget for nairalanders because you will be doing all of us a great favour. I know you have stated that you wont state the fees here but is it possible to register a company in all totality for less than N50,000 especially for nairaland members because all the lawyers i have met have quoted very very huge sums to register a company even up to N100,000 flat fee and that's far far above our budgets.What can you do for us please?

And to other nairaland members can we persuade lawyer too to help us out to convince him to do it for under N50,000 because he will be helping a lot of us especially the ones who are still undergraduates or new school leavers. Please lawyer think of it. Your water will not run dry.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Cmeo(m): 5:42am On May 12, 2009
I would say my questions are simple and straight forward:

I have a registered Limited Company but what happened was that an inferno (fire) happened and burnt the Certificate of Incorporation, form 2 & 7, CTC of memo and article of association, FIRS Receipt and all the document given after registration. The questions are:
            1. Is it possible to get a replacement of all these documents?
            2. What are the processes involved in getting them back?
            3. How long would it take to get them back and possibly the cost?
4. The company was registered a year ago , would I need tax clearance since all company registered in Nigeria have 5 year tax hoilday?

Thank you so much as i hope to see your post soon answering these questions
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 5:41pm On May 19, 2009
C me o:

I would say my questions are simple and straight forward:

I have a registered Limited Company but what happened was that an inferno (fire) happened and burnt the Certificate of Incorporation, form 2 & 7, CTC of memo and article of association, FIRS Receipt and all the document given after registration. The questions are:
1. Is it possible to get a replacement of all these documents?
2. What are the processes involved in getting them back?
3. How long would it take to get them back and possibly the cost?
4. The company was registered a year ago , would I need tax clearance since all company registered in Nigeria have 5 year tax hoilday?

Thank you so much as i hope to see your post soon answering these questions

Ouch! undecided

Sorry i havent gotten to you back for a while, i have been a little busy but i'll try to answer your questions as best as possible:

Generally all your documents have been burnt and the only way you can get them back is by applying for a certified true copy of all of them except the tax clearance and i am afraid its going to cost you a hell of a lot of money because this is what CAC prays for:

1. Firstly, you have to pay for company search to trace the name and certificate exists and you have to buy the forms and pay for search fees

2. To get the certified true copy of the CAC 2 and CAC 7, You have to purchase the forms, complete it, pay the prescribed filing fees and show evidence of your payment of Annual Returns

3.To get a certified True copy of your Certificate of Incorporation, you have to swear an Affidavit signed by a commissioner of oaths deposed to by one of the Directors

b. Write a formal application to the CAC to retrieve your certificate

c. Pay for the filing fees

d. Show evidence of your payment of your Annual Returns up to date

4. If you dont have a copy of your FIRS reciept, you have to pay N8,500 to procure a new one

5. To get the Memo or CTC of it, you have to show evidence of your annual returns, pay the filing fees.

To be frank, your going to spend nothing less than NN40,000-N50000 to get everything back into shape and thats including the proof of Annual Returns.

I am sorry mate but those are the rules undecided

Its better to register a new one than go through these hassles because their fees fluctuate everyday. If you have a photocopy of it, it will make life better a bit but if you didnt make copies of it, you cannot escape these fees and procedures!

Cheers
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by SethCohen1: 2:09pm On Jun 13, 2009
@lawyer

Sorry i haven't been online for a while to check your response to my question. I read somewhere that you said you do bonanza company registration for nairalanders. How do we get to know the bonanza price because i really need it now and how do we get in touch with you?

Besides is there anyone you have registered their company for on nairaland and would it be possible for you to hook us with them to confirm or can they confirm personally? Sorry for all these personal questions but i think it will do you more to your intergrity if we know more about other nairalanders who have benefitted from it. grin
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by viazi: 12:24pm On Jul 02, 2009
REGISTRATION OF COMPANIES IN NIGERIA A-Z

The following are the types of Companies Registerable in Nigeria
1. Private Company Limited by Shares
2. Company Limited by Guarantee
3. Private Unlimited Company
4. Public limited Company
5. Public unlimited Company
Note that the Minimum member of any of the above Company is two and the Minimum share Capital for a private Company is =N=100,000 and Public =N=500,000 while the minimum share subscription is 25%.

PROCEDURE FOR THE REGISTERATION/INCORPORATION OF COMPANIES IN NIGERIA
1. Availability and Reservation of Name
2. Payment of Stamp Duties to FIRS
3. Printing out of assessment page from Corporate Affairs Commission Cybercafé
4. Submission of  Stamped Memorandum & Articles of Association together with    Registration forms for verification
5. Payment of filing fees to the Commission.
NOTE:
• Names are reserved for 60 days
• Names must not be similar to another existing name
• Name must not be offensive, undesirable or misleading
• Name must not be contrary to public policy
• Name must not be similar to a registered trade mark or business name except with the consent of the owners
• Name with the word " Chamber of Commerce" is restricted only to companies limited by Guarantee

THE FOLLOWING NAMES REQUIRE PRIOR CONSENT OF THE COMMISSION
Names that contain any of the following words- Federal, National, Regional, State or Local Government, Names that suggest Government patronage, Ministries or Department of Government, Names that contain the Municipal, Chartered, Cooperative, Building Society, Names that contain the "Group" or " Holding"

TO OBTAIN CONSENT FOR THE USE OF THE WORD "GROUP"
• Formal Application to be accompanied with:
• Evidence of at least thee companies to form the Group
• Evidence of Common Membership of the Subsidiaries
• Resolution of subsidiaries consenting to the Group relationship
• Statement that the share capital of the GROUP Company shall not be less than the highest share capital of the subsidiaries
• Updated annual returns of subsidiaries

USE OF THE WORD "HOLDING"
• Formal application to be accompanied with the following:
• Evidence of at least two subsidiaries
• Statement that the holding Company shall acquire the majority of the whole of the shares of the subsidiaries
• Updated annual returns

NON REGISTERABLE WORDS
Syndicate, Amalgamated, Consortium, Consolidated and Conglomerate, these words depict some form of temporary business arrangement.

CHECKLIST FOR INCORPORATION
• Evidence of Name Reservation
• Statement of shares and return of allotment of shares
• Notice of Registered office address, physical and identifiable address and not P.O Box
• Sworn declaration of Compliance by a Solicitor
• Particulars of Directors
• Particulars of Secretary ( where a secretary signs any of the Incorporation Documents)
• Memorandum and Articles of Association duly signed, witnessed and stamped
• Photocopy of Consent letter from Registrar- General where applicable
• Proficiency certificate in the case of professional objects
• Residence Permit for foreigners where applicable
• Resolution and seal where a company subscribes to the shares to the Memorandum and Articles of Association
• Sworn affidavit of Explanation where there is a cancellation or alteration on signatures, differences in the name of the Company on Stamp duty receipt with other incorporation documents
• Photocopies of forms CO2, CO7 for issuance of CTC
Contact:  hybridsolicitor@yahoo.com       07055529276
http:// www.hubpages/hub/hybridsolicitors


Register your Company Speedily

Businessname, Partnership, Sole Propritorship------- =N= 12,0000 plus cost os sending Certificate to any part of Nigeria

Ltd Company ( Private Company)------------------------- =N= 60,000, plus cost of sending Certificate and accompanyind docs

Inc Trustees, NGO, Churches ets--------------------------- =N= 100,000 plus sending certs, docs and seal.
U will get yr Cetificates 4  1 & 2in 8 working days.

U can chart with   hybridsolicitor@yahoo.com     anytime    07055529276
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 10:32pm On Jul 05, 2009
@Seth Cohen

Seth Cohen:


How do we get to know the bonanza price because i really need it now and how do we get in touch with you?


hmmm . . . . i will try to answer your questions as diplomatically and legally as possible smiley

1. Like i said before, i will not reveal the price here because everyone is different and each company has its own extra necessities to handle i.e its share capital, its objects, the ones that require verification and certificate of proficiencies etc and my relationship with each person. I have always said its better you send me a mail or call and we will take it up from there. What i offer as a bonanza differs for each person.

2.
Besides is there anyone you have registered their company for on nairaland and would it be possible for you to hook us with them to confirm or can they confirm personally? Sorry for all these personal questions but i think it will do you more to your intergrity if we know more about other nairalanders who have benefitted from it

I have registered companies for so many nairalanders whereby they crack jokes calling me Nairaland company secretary grin but there is one thing i will never ever do. That is, reveal the names, directors and companies of people i have registered their companies based on the rule of Confidentiality and Non-Disclosure that occurs between me and my clients. There are a Million and one reasons why i wouldnt disclose their names because i doubt if you will want me to disclose confidential issues relating to your own company to the outside world. Its a Major Lawyer-Client priviledge that i fulfill to the end, so i am sorry there as the risk of sounding arrogant. I respect people's privacy!

But as a blow softener, i will willing give you references privately if you ask or mail me for you to do your own private investigation and research from others i have done company registrations for but its subject to that person agreeing to be a referee to expose his or her identity. If not, i won't tell you. Its part of my job to be diligent, prudent and respect the client's privacy at all times during the company registration and after the company registeration.

If you have any question about company registration, feel free to ask. This is a forum, we should share information not hoard it and i will be happy to answer them for you within my capacity and understanding.

Please i hope you understand! wink
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by kayjegs: 3:05pm On Jul 08, 2009
How can one register a NGO? What are the steps to be taken. If anyone has the answer, please mail me to kayjegs@yahoo.com. Thanks
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by maballack(m): 6:17pm On Aug 06, 2009
Please seun or monitor this should be at the begin of the business page, its very enlightning,
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 2:55am On Aug 07, 2009
maballack:

Please seun or monitor this should be at the begin of the business page, its very enlightning,

Thanks o! Mr Maballack! I concur too o! cheesy

Basically because people still call me at odd hours to ask me te procedure on how to register a company after i have broken it down so easily and simplistic for everyone!

So if they can put it up there, anyone who asks me will just be refered to that place once and for all!

Cheers
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by ITHANKGOD: 9:09pm On Aug 21, 2009
@Lawyer

You are Blessed
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by chatwitken: 2:21pm On Aug 31, 2009
@LAWYER
I will like to know, if i have to register a company or sole propiertorship to start a exporting business and how will it cost to register a company.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by kettlejnr: 11:37pm On Oct 09, 2009
What are the statutory reporting requirements for a company with share capital of N1,000,000 ?.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Cwhyte(m): 1:26pm On Oct 11, 2009
Dis is the best i'v eva read
@lawyer plz give us your email add
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 2:01pm On Oct 15, 2009
Quite a while Folks! The biggest Challenge at the CAC now is the Reservation of Name or Availability of Name search! Its really terrible whereby a Name search that should take maximum 2 weeks at most is going to 3months now!

Its Advisable for all those that want to register their companies to do so in advance because the Way the CAC thinks and acts atimes in respect of the Name Availability is somewhat baffling and when you need the Company registered in time, they will just mess you up! Maybe they are warming up for another Increment in the Price Structure undecided Who knows

Act fast in your own Interest!
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Oby1(f): 2:16pm On Nov 09, 2009
Hmm, Lawyer I found you here doing what you know how to do best, thumbs up! keep it up.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Cagman: 6:14pm On Nov 10, 2009
Hi,

I would just like to take this opportunity to commend and applaud "lawyer" for his highly informative posts re company incorporation in Nigeria.

As an Irish company secretarial and corporate compliance professional recently tasked to begin a co formation in Lagos, I have had cause to speak with a few formation agents there. While there are many similarities between our system and your own, no one could explain in exact detail the requirements etc so as that I could fully inform my clients. Indeed it took a lot of exhaustive research before we could finally proceed.

With that in mind, I can state unequivocally that "lawyers" shared information & depth of knowledge is an invaluable resource for all Nairelanders and seems to me to embody all that is best in many of the Nigerians I have met, Professional, Knowledgeable, Charitable, Sharing, Informative and Good Natured.

Regards
W.
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by olumii: 10:45am On Nov 17, 2009
Lawyer, I have a registered company and I want to include a new person as a shareholder and director, how do I go about it please?
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by lawyer(m): 12:49pm On Nov 20, 2009
olumii:

Lawyer, I have a registered company and I want to include a new person as a shareholder and director, how do I go about it please?

Hmm its quite a tedious process but when am chanced i will spell out the procedure for you. The only problem is that it can only be effected in the corporate headquaters in Abuja.

I will get back at you very soon.

@everyone else

Thanks for the Kind Words. I will strive to assist y'all better! Just let the questions keep rolling

Cheers smiley
Re: Frequently Asked Questions: A-Z Of Company Registration In Nigeria by Nobody: 10:38pm On Dec 08, 2009
@ lawyer,
thanks so much for a job well done. Pls could you leave your contact phone number/ office address behind, i'd like to register a business name. my number is 07040687649

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