Limited liability company is a company whose liability are limited by their share capital. What this entails is that if a company’s share capital is 1m then its liability will be limited to 1m only and nothing more. Limited Liability company have directors and shareholders. The shareholders are the real owner of the company while the directors are the managerial personnels of the company.
The director of the limited Liability Company must be 18years and above while the share holders can be 2 adults and other minors (people below 18 years).
There are thresholds of share capitals for companies in Nigeria. In otherwards there are special business that requires special share capital.
Read: Minimum Share Capital for Companies in Nigeria
Note that if a foreigner wants to register a business in Nigeria, the share capital is 100m and if resident in Nigeria there must be a resident permit for the registration.
Read also: FOREIGN INVESTMENT IN NIGERIA
Procedure to Register a Limited Liability Company with CAC
The requirements are:
- Names for name search (2 names)
- Company details:
- Company address
- Company phone number
- Email address
- Directors/shareholders details include:
- Name
- Phone numbers
- Email address
- Residential address
- Date of birth
- Means of identification (it can be Permanent Voters Card, Driver’s license, International Passport, National Identity (NIN)
- Signature
- Objects of the business (business you want to carry out)
Steps:
Conduct a name search in the CAC portal, if the name is approved then you commence registration by filing the application forms online. Once you are done filing the application forms, you upload the necessary document and make payment.
In the absence of any query, the application takes 14 days or more to be approved. Once the application is approved, you go ahead to download the certificate of incorporation, the Application form and the Memart (Memorandum and Article of Association)
In conclusion, it is illegal to do business in Nigeria without first registering the business with CAC. You can start by registering a Business name (Enterprise) if you don’t have enough capital to register a Limited Liability Company, you will then upgrade it to a Limited Liability Company as the need arises.
For more enquiries
Email: info@verazadvocates.com.ng
Call /WhatsApp: +234 8116486356
