AT Legitng, we are helping to build the legal platform for Nigeria’s superstar businesses.

We understand that paying a lawyer for services is not top priority for a lot of businesses. This pushes them to make silly mistakes. Even sophisticated businesses make some of these errors which tend to cost them a lot more as their businesses grow. After almost half a decade of advising Nigerian businesses from small start-ups to sophisticated investment companies, these are some mistakes we have seen entrepreneurs make which you should avoid:
1. Registering with a wrong name: The wrong choice of name can affect the fortunes of your company. The name choice for a company should depend on the vision for that company. For example, a personalized name like Dodo and Bola Limited may give the impression that the company is a one man business and may have a potential to stifle the growth of your company. Secondly, if you are incorporating a company as a vehicle for diverse businesses please do not choose a restrictive name. Use a versatile name that can wear many caps. For example, ABC Limited would be preferred to ABC transport Limited. If you put the second name before a tenders board for an oil service contract to supply drilling equipment, it may raise the question of competence as to whether a transport company can perform such a contract. However, if you are focusing on a particular line of business, you will earn some mileage by restricting the name to ABC pharmaceuticals Limited. This way, your company gains instant recognition and credibility in its line of business. Lastly, it will be of advantage if your company name is easy to pronounce and remember. Please think twice before naming your company after your grandmother whose name is a string of uncomfortable consonants and about 20 letters.
2. Infant subscribers: People often want their infant children (particularly sons) to be included as a second shareholder to their company while it is being incorporated. The law expects every company to have a minimum of 2 directors and does not recognize infants to be capable of being one of the two. Nigerian company law however provides that where the company has at least two adults as first shareholders, then an infant can be included.
3. Incomplete documentation after incorporation: Many times agents and lawyers incorporating a company provide certificates of incorporation to the client. Then he sets out to open a bank account only to be told that he requires certified true copies of other documents and he has to go back losing time and money to procure the other documents. Always negotiate with the lawyer to obtain the certified copies of other documents submitted during the registration process.
Keep these notes in mind as you think of registering your company. Starting and running a business in Nigeria can be complicated, but it can be a little easier with these tips.

Remember, at Legitng, we are helping to build the legal platform for Nigeria’s superstar businesses.