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Difference Between Incorporation Year And Established Year? - Business (3) - Nairaland

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Re: Difference Between Incorporation Year And Established Year? by bluecircle470: 5:36pm On Mar 23, 2016
Nigeria gain independence in 1960 but became a republic in 1963 and wot we celebrate is independence so same apply to year of established and incorporation. Established is d anniversary.

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Re: Difference Between Incorporation Year And Established Year? by modified(m): 5:41pm On Mar 23, 2016
Year of incorporation is the year you registered the company either as a public or private company. While year of establishment is the year the business starts it administrative and operational function.
Re: Difference Between Incorporation Year And Established Year? by raydatluvs(m): 5:42pm On Mar 23, 2016
Bro,well said. Except you can actually incorporate and then 'establish'. Then unless you are plc,you are at liberty to choose the date you want as your anniversary.
MyTime3:
Yes @ OP. The Year you started the business is the "Established Year" while the Year you Registered the business with CAC is the "Incorporated Year".

Anniversaries are usually done with the Year of Establishment which is usually earlier or the same as the year of Incorporation.


in order words.. "You CAN Establish before you incorporate", You CAN "Establish and Incorporate at the same time" but "You CANNOT Incorporate before you Establish"
Re: Difference Between Incorporation Year And Established Year? by jaz(m): 5:42pm On Mar 23, 2016
can you support your comments with the respective sections of the guiding Nigerian business laws, or else quit giving false and unsubstantiated information.
modified:
Year of incorporation is the year you registered the company either as a public or private company. While year of establishment is the year the business starts it administrative and operational function.
Re: Difference Between Incorporation Year And Established Year? by webnerd(m): 5:43pm On Mar 23, 2016
year of establishment simply refers to when a business starts operation while year of incorporation is when a business gets legal backing to carry out its operations., year of establishment could be before or after the year of incorporation especially for mom and pop businesses that have expansion growth
Re: Difference Between Incorporation Year And Established Year? by Muttex(m): 5:48pm On Mar 23, 2016
a coy might be establised but not incorporated.. a coy become incorporated when it becomes regonised by law as a seperate entity, artificial individual.. however, a coy might be created , established but not incorporated.year of establishment simply refers to when a business starts operation while year of incorporation is when a business gets legal backing to carry out its operations.
Re: Difference Between Incorporation Year And Established Year? by Sarkay31: 6:16pm On Mar 23, 2016
Correct
franciskaine:
Whr are the management experts? From my basic knowledge, I think incorporation simply means when a biz gets legal approval to start operation from the Corporate Affairs Commission. On the other hand, year of establishment means the actual year the biz starts its operation. For instance, a biz might get its approval in 2015 and begin its actual operation in 2016.

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Re: Difference Between Incorporation Year And Established Year? by Jarus(m): 6:18pm On Mar 23, 2016
1, A business can be operating and be conducting activities without being registered. These are usually small businesses and operators here are generally called informal sector.

2, A business can be registered without being incorporated, if it's not a company. Registration as sole proprietorship, enterprise, business name, partnership etc.

3, Incorporation is the formal registration process for a company. It is only a COMPANY that is incorporated.

4, A business can first register as a business name (I.e registered but unincorporated) and decide to incorporate (I.e become a company) later.

5, A business can be registered, incorporated or just a business name (unincorporated business) and not having any operations, I.e idle, dormant registered business.

6, A company might be established in 2006 and later on, say in 2012, merged with a company incorporated in 1960. The new enlarged company can use the 1960 incorporation date.

So these are the dynamics. Whichever you want to use as year of establishment depends on your purpose. However, I don't think you can use number 1 as year of establishment for a legal use.

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Re: Difference Between Incorporation Year And Established Year? by EROMS38(m): 6:27pm On Mar 23, 2016
Year of Establishment is the year the business was formed while your of incorporation is the year the business was giving the necessary licence to start operation i.e registration with the CAC.
Re: Difference Between Incorporation Year And Established Year? by Gwazah(m): 6:37pm On Mar 23, 2016
routik:
Hello people,

I need clarification on the difference between Incorporation year and Established year.

I am aware that year of incorporation is the year that appears on your company's CAC certificate. But when you see Established year, does it mean the year you started operations or is it the same thing with year of incorporation?

If they are different, which one do you select in celebrating your company's anniversary?, as many businesses didn't start operations the same year they were incorporated.

Your reasonable input will be highly appreciated.

Year of establishment means the year u start up ur business and start selling out ur product. EG I setup a shop and start producing Orijin today 23/3/16.

What is an 'Incorporation'
The process of legally declaring a corporate entity as separate from its owners. Incorporation has many advantages for a business and its owners, including:
1) Protects the owner's assets against the company's liabilities
2) Allows for easy transfer of ownership to another party
3) Achieves a lower tax rate than on personal income
4) Receives more lenient tax restrictions on loss carry forwards
5) Can raise capital through the sale of stock
Details:
U may operate ur company for more than a year and ur company may not be incorporated meaning u did not registered with CAC. without registration any body can sue u in person if ur company misbehave. But if u incorporate ur company, the company can sue and be sue meaning its a person in abstract, it can own access, and no one disturb u in person if the company goes wrong, but rather disturb the company as a person.
CHOOSING A CELEBRATION YEAR.
Rightfully, if u are to choose a year to celebrate your company, it has to be year of establishment and not incorporated year. because the year ur company planted a seed must be remembered.
For example: u might have heard a company's history that goes this way:-
GAMJI AND SON'S was established in year 1980 and was incorporated in the year 1981, the first director was Alh Aminu .........
Re: Difference Between Incorporation Year And Established Year? by rhames(m): 6:40pm On Mar 23, 2016
routik:
Hello people,

I need clarification on the difference between Incorporation year and Established year.

I am aware that year of incorporation is the year that appears on your company's CAC certificate. But when you see Established year, does it mean the year you started operations or is it the same thing with year of incorporation?

If they are different, which one do you select in celebrating your company's anniversary?, as many businesses didn't start operations the same year they were incorporated.

Your reasonable input will be highly appreciated.


These two questions that usually confuse those in and those about to start up a business. from the point of the accountant and tax man, year of establishment is the year you started business. The year of Incorporation is the year in which you registered that organisation to be a business name or registered company or organisation.

When you want to celebrate your anniversary, choose the date of establishment not the date of incorporation.

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Re: Difference Between Incorporation Year And Established Year? by lendron03(m): 6:45pm On Mar 23, 2016
MyTime3:
Yes @ OP. The Year you started the business is the "Established Year" while the Year you Registered the business with CAC is the "Incorporated Year".

Anniversaries are usually done with the Year of Establishment which is usually earlier or the same as the year of Incorporation.


in order words.. "You CAN Establish before you incorporate", You CAN "Establish and Incorporate at the same time" but "You CANNOT Incorporate before you Establish"
I beg to differ.... You can come up with a company name, incorporate it before u actually start laying foundation for your company building. My company was incorporated in 1998 but started operation in 2014.

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Re: Difference Between Incorporation Year And Established Year? by sweetilicious(f): 6:57pm On Mar 23, 2016
franciskaine:
Whr are the management experts? From my basic knowledge, I think incorporation simply means when a biz gets legal approval to start operation from the Corporate Affairs Commission. On the other hand, year of establishment means the actual year the biz starts its operation. For instance, a biz might get its approval in 2015 and begin its actual operation in 2016.
This is the best definition.But it might be established and incorporated the same time.

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Re: Difference Between Incorporation Year And Established Year? by davodyguy: 7:34pm On Mar 23, 2016
franciskaine:
but a layman doesn't know what CAMA is- Company and Allied Matters Act.

Law of karma. Repercussion grin
Re: Difference Between Incorporation Year And Established Year? by idrissunny: 7:35pm On Mar 23, 2016
Incorporation is when certificate of operation is giving to you by the cac in case of public limited company. And esterblishment is year the busines commence it activities but not yet rechieve certificate of incorporation in the of private business
routik:
Hello people,

I need clarification on the difference between Incorporation year and Established year.

I am aware that year of incorporation is the year that appears on your company's CAC certificate. But when you see Established year, does it mean the year you started operations or is it the same thing with year of incorporation?

If they are different, which one do you select in celebrating your company's anniversary?, as many businesses didn't start operations the same year they were incorporated.

Your reasonable input will be highly appreciated.
Re: Difference Between Incorporation Year And Established Year? by Elinob(m): 7:51pm On Mar 23, 2016
Y don't u ask google?
Re: Difference Between Incorporation Year And Established Year? by Justycxx(m): 8:14pm On Mar 23, 2016
ajibolabd:
Am coming wait for me
Ajibolad greetings bro, i doubt the validity of your signatory text. I'd like to clear my doubt on that.
Re: Difference Between Incorporation Year And Established Year? by asiwaju87(m): 8:27pm On Mar 23, 2016
1985- Pasuma started singing (est)
1993 - Pasuma became popular (incorp)


2015 - Lill Kesh started singing (est)
2015 -Lill Kesh became popular (incorp)

*don't thank me thank God grin
Re: Difference Between Incorporation Year And Established Year? by Adedolapo1406(m): 8:46pm On Mar 23, 2016
The day you formed ur biz is the Establishment date while Date of Incorporation is day your biz becomes a legal entity (Artificial Person) i.e the day it's been recognized by law.
Re: Difference Between Incorporation Year And Established Year? by ROYALD(m): 8:51pm On Mar 23, 2016
Incorporation :Is the process of legally declaring a corporate entity.Juts Legally recognized

Established: Having been in existence for a long time and therefore recognized and generally accepted. Legally or not
Re: Difference Between Incorporation Year And Established Year? by Nobody: 9:52pm On Mar 23, 2016
davodyguy:

Law of karma. Repercussion grin
lol
Re: Difference Between Incorporation Year And Established Year? by Nobody: 9:53pm On Mar 23, 2016
sweetilicious:
This is the best definition.But it might be established and incorporated the same time.
I concur!
Re: Difference Between Incorporation Year And Established Year? by Nobody: 9:58pm On Mar 23, 2016
Justycxx:
Ajibolad greetings bro, i doubt the validity of your signatory text. I'd like to clear my doubt on that.
ask me ☺ questions please
Re: Difference Between Incorporation Year And Established Year? by omokab: 10:00pm On Mar 23, 2016
Year of incorporation means the year of legally declaring the corporate entity as separate from its owner. What it means is that you may establish your company on the 1st of January,running it as individual ownership just like dangote sugar but the day he take his company to stock exchange for people or outsiders to purchase shares as a listed company becomes day of incorporation. He is no more the sole ownership of the company. But the day of establishment will always be 1st of January of the year the operation started.
Re: Difference Between Incorporation Year And Established Year? by omoadeleye(m): 10:26pm On Mar 23, 2016
The Established is the day you bring the business into the world then after meeting all the specifications /requirement by CAC your business can now legally be incorperated so you can only have the patents right of your company.
Re: Difference Between Incorporation Year And Established Year? by sorepco(m): 10:37pm On Mar 23, 2016
Nope...u can incorporate b4 u establish. I incorporated a company 2 yrs ago and have not rstablished yet due to or two reasons. I guess by cac laws u have 18months to incorporate abusiness and not establish it....after that eithet you rstablish n start paying taxes or close it....however i think after the 18 months you can write them pleading for more time before you establish....unlesd if them don change the law.


MyTime3:
Yes @ OP. The Year you started the business is the "Established Year" while the Year you Registered the business with CAC is the "Incorporated Year".

Anniversaries are usually done with the Year of Establishment which is usually earlier or the same as the year of Incorporation.


in order words.. "You CAN Establish before you incorporate", You CAN "Establish and Incorporate at the same time" but "You CANNOT Incorporate before you Establish"
Re: Difference Between Incorporation Year And Established Year? by sorepco(m): 10:43pm On Mar 23, 2016
franciskaine:
but sir, what if a biz gets its approval from CAC and becos of the unavailability of its input at the very period fail to start operation, can the biz be said to have been established?


You have an 18 months grace period to decide when you can start or establish. After that inititial 18 montgs grace i thonk you can write cac through the federal inland revenue service telling them why you cant start operations and they will give a grace period.

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Re: Difference Between Incorporation Year And Established Year? by sorepco(m): 10:45pm On Mar 23, 2016
jaz:
ive read
What do you mean...that a trader in alaba or idomota has to be incorporated in naija??


quite a bit of comments and must say i'm amused. lots of incorrect info being passed around. let me clarify a few points.

- the Law governing establishment and management of a business enterprise, whether sole proprietorship, partnership, limited companies, public entities, is the "Companies and Allied Matters Act" of Nigeria

- According to Part B, Section 573 (1) of CAMA" "Every individual, firm or corporation having a place of business in Nigeria and carrying on business under a business name shall be registered..." so once you establish even a shop you are required by law to register with CAC. this is further corroborated in Section 21 (1c) of CAMA.

- Date of establishment is also the same as the date of incorporation because no company can operate in Nigeria without registration

- For those who engage in business enterprise in NIgeria, such activities are considered null and void however this does not apply to payment of taxes. but payment of taxes would also require registration grin so you decide.

- For those who have established a business without registration or later registration and most likely without payment of taxes, or notification of respective tax offices , are seating on a keg of gun powder and have no right to complain if they don't have basic social amenities.

- let me know if you have any further questions. Peace!

Re: Difference Between Incorporation Year And Established Year? by Nobody: 11:00pm On Mar 23, 2016
sorepco:



You have an 18 months grace period to decide when you can start or establish. After that inititial 18 montgs grace i thonk you can write cac through the federal inland revenue service telling them why you cant start operations and they will give a grace period.
Okay, thanks!
Re: Difference Between Incorporation Year And Established Year? by Olaone1: 12:42am On Mar 24, 2016
MyTime3:

in order words.. "You CAN Establish before you incorporate", You CAN "Establish and Incorporate at the same time" but "You CANNOT Incorporate before you Establish"
I disagree
Re: Difference Between Incorporation Year And Established Year? by Tinyemeka(m): 12:43am On Mar 24, 2016
MadCow1:
Year of Incorportation: This is the year you started to co-operate with Guys.

Year of Establishment This is the year you Established a.k.a the year you Hammer.



cool


Dont Thank me, thank God.


EDITED:: Okay, so after being called out by some people for being unserious, I have decided to be serious.. SO SERIOUSLY SPEAKING NOW

OP, since you are confused with the Establishment date, I will give you an example.. Have you seen a FirstBank Sign? Example below..



Thats what they are asking. That date may not be the same as the Date it got incorporated. Infact it shouldnt be the same as the incorporation date.

Many Businesses have signs with the 'Est. Since 9120', e.t.c.. The Date of Incorporation may be Older or Younger than the date of Establishment.

For my company, the date of Incorporation is 3 years older than the date of Establishment.



I hope this answers your question..


Cc: Ujsizzle & franciskane. I hope you guys are cool now.. grin Please keep me in your prayers.. I think I am actually Mad.

You still didn't answer his question. angry

@OP, there are some things you may need to query wiki instead of coming to waste time on NL.

Year of Incorporation: The year you register the business as a separate legal entity recognized by law. Meaning your business can sue or be sued, is recognized by the government and therefore required by law to pay tax. In Naija's business environment, it's the year you registered your business with the Corporate Affairs Commission.

Year of est: https://en.m.wikipedia.org/wiki/Date_of_establishment

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