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How To Register Limited Company In Nigeria

How To Register A Limited Company In Nigeria

Are you planning on starting a business in Nigeria? One of the first steps you need to take is to register your company with the Corporate Affairs Commission (CAC) as a limited liability company. This article will guide you through the process of registering a limited company in Nigeria.

What is a Limited Company?

A limited company is a type of business structure that limits the liability of its owners (shareholders) to the amount of their investment in the company. This means that if the company goes bankrupt or faces legal action, the personal assets of the shareholders will not be at risk.

Benefits of Registering a Limited Company in Nigeria

There are several benefits to registering a limited company in Nigeria. Some of these benefits include:

  • Limited liability protection for the owners
  • Perpetual succession, meaning the company can exist even if the owners change
  • Ability to raise capital by selling shares
  • More credibility with customers and suppliers
  • Separate legal entity status, meaning the company can sue and be sued in its own name
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Steps to Register a Limited Company in Nigeria

1. Choose a Company Name

The first step in registering a limited company in Nigeria is to choose a name for your company. The name should not be similar to any existing company name and should not contain any offensive or prohibited words. Once you have chosen a name, you can conduct a name search on the CAC website to ensure that the name is available.

2. Prepare the Required Documents

To register a limited company in Nigeria, you will need to prepare the following documents:

  • Memorandum and Articles of Association (MAA)
  • Form CAC 1.1 (application for registration of a company)
  • Form CAC 2 (statement of share capital and return of allotment)
  • Form CAC 7 (particulars of directors and secretary)
  • Form CAC 3 (notice of registered address of the company)

3. Pay the Required Fees

You will need to pay the required fees to the CAC for the registration of your company. The fees will depend on the authorized share capital of your company. You can find the fee schedule on the CAC website.

4. Submit the Documents

Once you have prepared the required documents and paid the necessary fees, you can submit the documents to the CAC. You can do this online or in person at one of the CAC offices in Nigeria.

5. Obtain Your Certificate of Incorporation

After the CAC has reviewed your documents and approved your application, you will receive your certificate of incorporation. This certificate serves as proof that your company has been registered with the CAC and is authorized to do business in Nigeria.

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Conclusion

Registering a limited company in Nigeria is an important step to take when starting a business. It provides several benefits, including limited liability protection for the owners and the ability to raise capital by selling shares. By following the steps outlined in this article, you can successfully register your limited company with the CAC and start doing business in Nigeria.

FAQs

1. What is the minimum share capital required to register a limited company in Nigeria?

The minimum share capital required to register a limited company in Nigeria is N10,000.

2. How long does it take to register a limited company in Nigeria?

The registration process can take between 2-4 weeks, depending on the workload of the CAC.

3. Can a foreigner register a limited company in Nigeria?

Yes, a foreigner can register a limited company in Nigeria. However, they will need to have a Nigerian resident director and a minimum of two shareholders.

4. How often do I need to renew my company registration with the CAC?

You will need to renew your company registration with the CAC every year by filing an annual return.

5. Can I change the name of my company after registration?

Yes, you can change the name of your company after registration. However, you will need to follow the proper procedures and pay the necessary fees to the CAC.