Choosing how a business is organized may be the wisest decision, but for some, it may be an unnecessary decisions; and so each business should carefully access the benefits (and challenges) of incorporating before moving forward.
When you are starting a business, one of the first decision you have to make is the type of business you want to create? A sole proprietorship, a limited liability company? this decision is very viable, because of the business determines the type of applications you will need to submit. You should also research liability implication for personal investments you will make into your business, as well as the taxes you will need to pay.
The (Corporate Affairs Commission) CAC regulates the formation and management of companies in Nigeria. It is empowered by the Nigeria law to handle all issues associated with company registration of business names, and incorporated trustees in Nigeria. If you will want to register your business name in Nigeria without involving third party (e.g lawyer, agent, e.t.c) you will have to go any CAC offices in Nigeria or go directly to any of the CAC branches all across the country. CAC offices are mostly found in most of the state capitals in Nigeria.
Tips on How To Register your Business
The corporate name is usually required to be a business name dissimilar from any other firm incorporated within the state. In addition, the name must not be deceptive or misleading. Locate the corporate affairs commission (CAC) office in your city and file a business name search form cost. After filling and submitting the form you will have to wait for about 1 or 2 weeks to know if the name you filled is available.
Purpose of the Business:
The purpose of the business the business you are incorporating must be stated. It is a good practice to use a specific purpose for which the corporation is being formed.
The Company must be an Independent Group:
It must not be affiliated with any other, it may have only a single class of stock, no more than 35 stake holders (only individual or estates may qualify as stakeholder)
Memorandum of Understanding:
Its is describe as a bilateral or multilateral agreement between two or more parties. It expresses a convergence of will between the parties. Indicating an intended common line of action.
Articles of Association
This are contract between the members (stake holders) and the organization also, the members themselves. It set out the right and duties of directors and stakeholder individually and in meetings.
Appointments of Directors And Holding Initial Board Meeting
Each registered corporation must appoint directors and board member, who may be the same person, usually the owner of the corporation.