CLICK HERE TO REGISTER A COMPANY IN NIGERIA

How Much Does It Cost to Register a Company in Nigeria?

Foreign companies looking to do business in Nigeria, or Nigerian companies that are expanding overseas, need to register their business in the country. This is a process called company registration.

This article will guide you through company registration as well as some of the other investment opportunities in Nigeria, especially for foreign investors.

Here are some costs associated with registering a Nigerian company.

What is Company Registration?

Although it is possible to open a company in Nigeria without registering it, registering your company with the Corporate Affairs Commission (CAC) will provide you with several benefits.

Registering your company means documenting the process of incorporation and submitting the required documents to CAC. You will be assigned an identification number that must be used on all official documents and transactions.

When you register your Nigerian company, you will have access to a wide range of business services through the website of the CAC, including:

– Business Registration

– Passport Registration

– Company Name Search

– Legal Advisory

– Record Retrieval

– Trade Mark Registration

– Research Services

Types of Company Registration

There are two types of company registration:

– Sole proprietorship

– Partnership

Sole Proprietorship

A sole proprietorship is a business that has only one owner. The business is registered under the name of the owner who may be an individual or a group of individuals. There are no formalities to follow in registering a sole proprietorship, and it can be done within a day. All it takes is filling out some forms and submitting them to the Corporate Affairs Commission, which can take up to 14 days to process.

Partnership

A partnership is a business with 2 or more owners. It must be registered as such, with all partners contributing money, property and labor in an agreed proportion. The registration process for partnerships involves submitting application forms at the Corporate Affairs Commission in Nigeria, along with documents such as articles of partnership and certificates of incorporation from each partner’s country of origin. This process can take from 3 weeks to 3 months to complete, depending on the documentation provided by the partners.

Sole Proprietorship

– Registering the company: $2,000

– Renewal fee: $1,000

– Annual tax: $1,200

Partnership

registration

The cost of partnership registration is ₦50,000. The registration fee covers one partner among the company’s founders. If you’re going to be funding your Nigerian company with foreign funds, then this is the easiest way to go. You won’t have to submit any documents and the information provided will be enough for the company to open an account at a Nigerian bank.

Private Limited Company (Ltd)

Cost:

N160,000 to N1.8 million

Investment Intentions:

Start-up/SMEs

Pricing Details:

This is the minimum amount that a company needs to raise in order to register as a private limited company (Ltd). It is broken down into two installments: the first installment is payable at the time of registration and the second installment is payable on incorporation. The two installments together are called the capitalization requirement. Investors may be required to provide proof of funds through bank statements. This process can take up to two months, but this might vary depending on how quickly investors can provide their proof of funds.

What’s Included:

Registration and documentation fees N150,000

Business name reservation fee N5,000

Employee shareholding percentage (if any) 10%

Public Limited Company (PLC)

To register a public limited company in Nigeria, you will need to first submit your application to the Corporate Affairs Commission (CAC). The CAC will then conduct its own investigation of your application. Once they have cleared you, they will post your company on the list of registered companies and notify you by email.

The cost to register a PLC is $2,200.

Public Limited Companies (PLCs) are regulated separately from private limited companies. This means that there are different rules governing how PLCs work. They must follow the Nigerian Corporate Governance Code and cannot engage in any other business outside Nigeria without taking out an additional license within Nigeria.

Costs Associated with Company Registration

Registering a Nigerian company is an investment, so you will have to pay some fees. Fortunately, the costs associated with registering a Nigerian company are fairly low.

The following are the types of costs associated with registering a Nigerian company:

– Registration fee: This is typically the cheapest cost associated with registering a Nigerian company. The registration fee for an unlimited liability company varies depending on the type of entity you choose (limited liability or unlimited). The lowest registration fee for an unlimited liability company is NGN 40,000 while the lowest registration fee for limited liability companies is NGN 20,000.

– Company name search: If you want to register your company as a limited liability entity, then you will also have to purchase the right to your desired name. Companies must buy their desired name from the government before they can use it. This option typically ranges in price between NGN 150 and 300, which is comparable to other countries such as Kenya and Ghana.

– Business ID number search: For those who want to register their business as an unlimited liability entity, this step requires that you get a single ID number from Nigeria’s Corporate Affairs Commission (CAC). The price for one ID number ranges from NGN 2,000 to 7,000. You can also apply for up to three ID numbers at once if necessary.

– Taxpayer identification or VAT number application: Foreign investors who want to do business in Nigeria need a taxpayer identification number or VAT

Conclusion

Company registration is a process of obtaining the legal status of a company. Instances where one needs to register a company include when registering a business in Nigeria, for example. There are various types of company registration, and the type one chooses will depend on the size of the company and its objectives. Costs associated with company registration vary from country to country and depend on the type of company one registers. In Nigeria, for example, the cost is different for sole proprietorship versus a private limited company.

1. What is Company Registration?

2. Types of Company Registration

3. Sole Proprietorship

4. Partnership

5. Private Limited Company (Ltd)

6. Public Limited Company (PLC)

7. Costs Associated with Company Registration

Conclusion: Company registration is a process of obtaining the legal status of a company. Instances where one needs to register a company include when registering a business in Nigeria, for example. There are various types of company registration, and the type one chooses will depend on the size of the company and its objectives. Costs associated with company registration vary from country to country and depend on the type of company one registers. In Nigeria, for example, the