Business Entity Registration Service in Nigeria

Nigeria offers a diverse range of business entity options to suit different needs and preferences. Here are some of the most common types:

1. Sole Proprietorship:

• Owned and operated by a single individual.
• Simple to set up and manage.
• Owner is personally liable for all business debts and obligations.

2. General Partnership:

• Owned by two or more individuals who share profits and losses.
• Partners are personally liable for the partnership's debts.
• Requires a partnership deed to outline the terms of the agreement.

3. Limited Partnership (LP):

• Combines elements of a partnership and a company.
• Requires at least one general partner with unlimited liability and at least one limited partner with limited liability.
• Often used for venture capital, real estate investments, and professional partnerships.

4. Private Limited Company (LTD):

• A separate legal entity owned by shareholders.
• Shareholders have limited liability.
• Typically used for small and medium-sized businesses.

5. Public Limited Company (PLC):

• Can be listed on the stock exchange and has a wider shareholder base.
• Subject to more stringent regulations than private companies.
• Often used for large corporations.

6. Incorporated Trustee:

• A non-profit organization established for charitable or specific purposes.
• Used by charitable organizations, foundations, and associations.

7. Unlimited Company:

• A company with unlimited liability for its members.
• Less common in Nigeria and typically used for professional partnerships.

8. Limited Liability Partnership (LLP):

• A relatively new business structure in Nigeria.
• Offers limited liability to all partners.
• Often used for professional firms, such as law firms and accounting firms.

Operating an unregistered business can result in legal penalties, inability to open a corporate bank account, and missed opportunities for financing, grants, and government contracts. It may also lead to issues with customers and partners, as your business lacks legal recognition.
 

Registering your business provides legal recognition, allows you to open a corporate bank account, protects your business name, and gives access to financing, tax identification, and business permits. It also builds trust with clients and partners.

The registration process typically takes between 2 to 10 working days for most business entities, assuming all documents are in order and there are no issues with the application.

However, it may take longer for certain types of entities like incorporated trustees or companies limited by guarantee.

The key documents include a valid means of identification for all directors or proprietors, completed registration form, and, for some businesses, additional information like share capital, address, and TIN.

While you can complete the registration process on your own, hiring a professional such as a chartered secretary or lawyer ensures that the process is handled accurately and that all legal requirements are met.

For companies limited by guarantee or Incorporated Trustees, having a professional guide is often necessary.

SplashDict is owned and managed by a team of Chartered Secretaries and we can help you register any kind of Business in Nigeria. 

A TIN is a unique number assigned to your business by the Federal Inland Revenue Service (FIRS) for tax purposes. All registered businesses in Nigeria need a TIN to fulfill their tax obligations and open a corporate bank account.

The CAC is the regulatory body responsible for registering and regulating businesses in Nigeria. It ensures that businesses comply with the legal requirements and maintains the records of all registered entities.

Yes, you can change your business structure after registration, such as converting a sole proprietorship to a limited liability company.

This process involves additional paperwork and compliance with regulatory requirements, and SplashDict can assist with entity conversion and re-registration services.

Apart from resonating with your brand, your business name must comply with the CAC’s naming guidelines, which are in place to make sure business names are special, fitting, and don’t infringe on someone else’s trademark. 

Here are some of CAC’s naming guidelines: 

• Your business name has to stand out and be different from other business names or trademarks.
• Your business name should be related to what your business does; It shouldn’t mislead or confuse folks. For example, your business name should not imply you own a makeup studio if you are running a fashion store. 
• Your business name must not be offensive, rude, discriminatory, or go against what’s considered good behavior in society.
• Your business name must follow all the laws and regulations in Nigeria. Don’t pick a name that suggests anything illegal or unethical. Also, don’t choose names that could trick or fool the public.
• Certain words are off-limits unless you get special permission. For example, words like “Federal,” “National,” and “Government” are reserved and need clearance from the right authorities before you can use them in your business name

• Liability: The level of personal liability you want to have.
• Tax implications: The tax consequences of each business entity.
• Ownership and control: How you want to structure ownership and management.
• Funding needs: The amount of capital required and the ease of raising funds.
• Future growth plans: The potential for expansion and scalability.

Yes, foreigners can register a business in Nigeria, but certain requirements must be met. This includes obtaining a Business Permit and registering with the Nigerian Investment Promotion Commission (NIPC) for some business types.