Starting a business in Nigeria requires more than a great concept and persuasive business plan. Although if you have already got these things covered, you are well on your way to success. There are numerous details you must attend to before planning the grand opening for your business.
Laws pertaining to starting a business in Nigeria include:
COMPANIES AND ALLIED MATTERS ACT (CAMA) 2004
It regulates the different ways in which business may be carried out and it is divided into three parts. The three parts are:
Part A Companies,
Part B Business name
Part C Incorporated Trustees
CAMA deals with the various types of company structures, eligibility, process for registration and rules of operation. The regulatory body in charge of implementing the provisions of the CAMA is the Corporate Affairs Commission (CAC).
Most of the common entities for SMEs in Nigeria are; Business name, Limited Liability Company, Partnership.
Let’s discuss a little about “companies” since a lot of people prefer this.There are two categories of Companies namely;
- Public Companies
- Private Companies
Most SMEs fall under the private company category. The process to register a company is called “incorporation”. Upon successful registration incorporation, the company is presented with a “certificate of incorporation”. The certificate of incorporation is signed and dated by the Registrar – General of the CAC.