The first step is to register with the Corporate Affairs Commission (CAC), the government agency authorized to register companies in Nigeria. The Companies and Related Matters Act 2020 provides for a wide range of forms under which a company can be registered, including the name of the company, the limited liability company or the limited liability company. For individuals, local or foreign, who set up a business in Nigeria, the most appropriate form of incorporation for them is a limited liability company which creates a separate legal entity that assumes responsibility for the company and the liability of the members is limited to the number of shares they do not pay. CAMA 2020, which will come into effect in January 2021, eliminates the requirement to hire an Executive Secretary. Also, a small business doesn`t necessarily need to hire an auditor. In summary, all the start-ups recognized and facilitated within the framework of CAMA 2020 as well as the requirements for the registration of each individual were discussed. It is advisable that a natural or legal person wishing to do business or incorporate in Nigeria should use the services of a CAC accredited agent or corporate lawyer to obtain advice on the most appropriate form of incorporation in Nigeria. This requirement largely depends on the company in which a company wants to get involved. As already mentioned, some companies need to be specifically regulated to protect their stakeholders, such as consumers of that product or its recipients, to ensure that the highest standards are met in the delivery of that good or service. For example, if a company wants to market pharmaceuticals, it must obtain approval from the National Food and Drug Consumption Agency (NAFDAC). A license from the Nigerian Communications Commission is also required for a company venturing into the telecommunications sector.
Copyright ownership belongs to the creator of a copyrighted work, who is generally referred to as the “author” of the work. He mainly owns the copyright to the work. However, the author is free to transfer his rights to third parties. In such a case, the person who obtained the right by transfer or other legal means becomes the owner of the copyright. Later, the company went bankrupt and went into liquidation. Salmon`s right against the obligations prevailed over the claims of the unsecured creditors. If things had been done legally, the other creditors would not have gotten anything in return for the liquidation process. In order to avoid an alleged exclusion, the unsecured creditors argued, through the receiver, that the company was nothing more than a representative of Salomon. And that is why Solomon, as a customer, should be personally responsible for his debts. Clearly, the creditors` claim did not recognize that the company (Salomon Ltd.) has a separate legal personality from Salomon itself. The Nigerian legal system protects intellectual property rights in the following categories: copyright, trademarks and patents.
A company registered in Nigeria can be sued on its behalf. This locus standi derives from the principle of “legal personality of the company”, which indicates that a company acquires a legal identity as soon as it is incorporated. It should be noted that this principle also allows the company to take legal action. A joint-stock company in Nigeria is an independent legal entity. As a joint-stock company becomes a legal entity with rights and privileges, the prosecution procedure is no different from the prosecution procedure of an average person in Nigeria. Articles 746 to 788 of Part C of the ACMA 2020 introduce the limited liability company. For persons who intend to set up a company, the introduction of this type of incorporation provides an opportunity to do so and to consider the company as a separate legal entity. Accordingly, upon registration, it may sue and be sued on its behalf, acquire, possess, hold, develop and dispose of movable or immovable property, have a common seal (optional) and perform any other act that a corporation may lawfully perform. In accordance with CAMA 2020, Companies Regulations 2021 and CAC/LLP 01 (Application for Registration of a Limited Liability Company), the following requirements are for registration: There are additional requirements for a foreigner or foreign company intending to set up a business in Nigeria, which are discussed below in this article. Overall, any business that needs legal recognition in Nigeria must achieve the following to establish a legal entity in Nigeria: This legally produced personality is able to conduct business transactions as a natural person can. Certainly, natural men are the brains behind the formation of every business personality.
However, the directors of this body differ from this one in the eyes of the law. These available legal capabilities of a joint-stock company have enabled the complexity of modern business activity. If you wish to operate a business in Nigeria under a name other than your personal name, and even if it is in your personal name but as a legal entity, it is necessary that you register that legal entity in order to benefit from the protection of the law. The same applies to non-profit organizations such as associations, associations, political parties, churches, cooperatives, etc. Various laws regulate the establishment of these institutions. Registration using this form is easy. Any company, person or entity that needs to be registered must register with the CAC within 28 days of commencing operations. Part E of CAMA 2020 and the CAC and CAC/BN 01 (Application for Name Registration) specify the following requirements: In general, the court with jurisdiction over defendant corporate matters is the Federal Court.
However, depending on the cause of action, some cases may be brought before the State High Court. Applicants should pay particular attention to this and seek legal advice in this regard. If the case goes to court, court proceedings typically include: We will now examine the legal status and registration requirements of each of these entities in more detail and comprehensiveness. You can click on one of the lists below to learn more. The Companies and Related Matters Act 2020 (CAMA) and the Companies Regulations 2021 govern the affairs of commercial establishments and charitable entities, with the exception of the Cooperative Society, which is governed by various state laws in Nigeria. CAMA allows you to register your business as a business name, which can be a sole proprietorship or a partnership. or as a limited partnership; or a limited liability company; or, even as a corporation, which may be private or public, limited or unlimited, depending on the purpose.
