How To Register A Company In Nigeria From Just 23,700 Naira ($62): The Complete Guide
In a previous article titled How To Register A Business In Nigeria With Just 10,500 Naira ($27): The Complete Guide, I explained the step by step process of how any individual trying a register a business name in Nigeria on the CAC portal could do it by themselves.
As a continuation of the business registration post series, this article focuses on another crucial part of business registration in Nigeria. And that’s how to register a company in Nigeria starting from 23,700 Naira, based on the share capital of the company you’re registering.
Before you think about registering a company in Nigeria, you first have to determine the type of company that is most suitable for your business.
There are three major types of companies:
- Company limited by shares
- Company limited by guarantee
- Unlimited company
Any of the above may either be a private or public company.
Please look out for our eBook on how to start a business in Nigeria for a full understanding of all the types of companies you can register in Nigeria.
However, the most common type of company mostly incorporated in Nigeria is the Private company limited by shares, hence the main focus of this article.
See Also: How to Choose A Business Plan Consultant
The Information Needed For The Registration Of A Company In Nigeria
- Proposed company name: Just as stated in the business name registration article, conduct a public search to know whether the name you intend to use is already in existence, follow the steps in the article to learn how to conduct a search, identify if the names you intend to register falls under prohibited or restricted names, and also look out for the ebook for a comprehensive understanding of all these.
- Alternative name
- Type of company
- Address of principal place of business.
- The object clause
- Particulars of share holders
- Particulars of directors
- Means of identification of directors and shareholders
- The share capital
- Distribution of shares
How To Register A Company In Nigeria Using The CAC Portal
Step One: Availability Check And Reservation Of Names
This has to be done after you have successfully created an account (please read the previous article on how to register a business name in Nigeria for just 10,500 Naira ($27) to learn how to create an account).
Log into your account
i). On the home page, provide two names for your company registration
ii). On the first box, provide the most preferred name and provide an alternate name in the second box. Either of the two should be approved if available and without any impediments.
iii). Ensure you add limited at the end of each name. E.g ABCD limited
- Click on proceed and fill in the details correctly
- On the classification, select company
- On the company type, select the type of company you prefer
- Select your reason for the availability
iv). Click on next, and you will be brought to the payment section.
v). Choose the type of online payment best suited for you and pay the sum of N500 for the search.
To view your payment history, return to the portal, click on “reservation history”, then click on the “action button” on the right end of the reserved name. It will take you to the payment history page. Click on “check status” to confirm your payment.
Once this is completed, click “check my reservation history” to see whether the name has been approved or not. All things being equal, approval or denial of the name shouldn’t take beyond two working days.
Once a name has been approved, the status on the name changes from “pending approval” to “approved”, and a code is given as an identity for the reserved name. This code is what you will use to complete your registration. To view this code, click on “action button” and download the approval note and code.
Step Two: Filling The Application form
After you have obtained the availability code, click on “registration”. Just beside “name search”, choose company, and enter the availability code. Then click on proceed.
After you have entered the code select “continue”.
This page will be displayed.
Fill in the forms correctly and click on “Continue” when done with each stage. You can always click on “save and exit” to leave and also continue from where you stopped later.
i). Stage One: presenter’s details
Fill in your details correctly.
ii). Stage Two: Company details
You would need to fill in the name of the company, office address, city, state, etc, and click “Continue” to proceed.
iii). Stage Three: First Directors
It is worthy to note that the minimum requirement for a number of directors in a company formation is two and must not be below the age of 18, is a person of unsound mind, and an undischarged bankrupt.
So at this stage, click on “add a director”. After you have filled the details of the first director, click on “save director”. Also click on “add director” again to add the particulars of another director. Repeat this process until you are done adding the number of all the directors you wish to add.
A list of the added directors would now be displayed on the page.
To edit or delete a director’s details, simply scroll to the director’s name, click on “Action”, and select “edit detail” or “delete”. Depending on what you want.
After adding the directors, click on “Continue” at the bottom left to proceed.
iv). Stage Four: Secretary
Note: For a public company, the secretary must be a legal practitioner, a chartered secretary, or a chartered accountant. This is not mandatory in a private company, but also advisable.
Fill in the form for the details of the company secretary correctly and click on “Continue” to proceed.
v). Stage Five: Subscribers
Subscribers are individuals subscribing to the shares of your company.
Click on “Add a new shareholder”, fill the form, and click on “Add” to insert another shareholder. Repeat this process until you have added all the shareholders.
Note: You can add any of the directors as shareholders.
Click on the check box beside the director’s name to select them, fill in the number of shares and type of shares, and click on “Click to Add selected Record(s)”to insert.
To edit the details of a shareholder or to delete a shareholder:
Scroll to the name of the shareholder below the page where the names of the added shareholders are displayed. Click on “Action” and select “edit” or “delete” as the case may be.
After you are done adding the shareholders, click “Continue” to proceed.
vi). Stage Six: CAMA Declaration
This is a declaration (statement on oath) that must be completed by a legal practitioner and sworn to before a commissioner of oaths or a Notary public.
vii). Stage Seven: Memorandum & articles of Association
Click on “Add an object” and type in the object one after the other.
The MEMART must reflect the name of the company, the registered address of the company, the type of company, the object clause of the company, the authorized share capital of the company, the particulars of subscribers,; their names, addresses, signatures, and the number of shares taken by them.
It is important you fill this part diligently, as the memorandum and articles of association (MEMART) serves as the constitution of the company.
Here you might need the advice of a legal practitioner on how to choose your objects because some objects determine some special requirement like proficiency certificate, etc.
viii). Stage Eight: Documents.
Click on the pointer at the right side of each document and select the number of certified true copies (CTC) you need. After selection, click on “Continue” to proceed.
A preview of your company registration is displayed.
Go through the preview for clarity. You can click on “go back” to return to previous pages and make corrections if any. If everything is correct, click on “Proceed to Payment” at the bottom right of the page to continue.
The filling fee paid at this point is 15,000 Naira.
Step 3: Stamp Duties
After payment is made, you will automatically be directed to the FIRS website where you would have to pay stamp duties on the company. The MEMART and Statement of authorized share capital are subject to stamp duties.
The amount you pay as stamp duties is dependent on the share capital of the company. For a company with a share capital of one million, the stamp duty costs just 8,200 Naira.
Once you make the payment, you will be automatically be directed back to the CAC website. If this does not occur automatically, go back to the CAC portal, log in, click on registration, and select company. This would reveal two documents: Cac 1.1 and MEMART. Download the stamped document, and print the document in coloured for the directors to append their signatures and for other necessary information to be completed.
Step 4: Document Upload
- Scan the document and save as pdf
- You would need to scan the availability report, payment receipts, identity of directors and shareholders if different, stamped memart (duly signed), stamped application form (cac 1.1 duly signed), and proficiency certificate where applicable.
- Note: these documents should be scanned and uploaded independently
- Visit http://docupload.cac.gov.ng or visit cac.gov.ng and select document upload.
- Enter the availability code you used in registering the company and select the nearest CAC office you wish to pick up your certificate from.
- Enter the captcha.
- Click on begin.
- Click on Choose Scanned Document Below and select the documents you wish to upload.
- Click “Attach” to attach the document.
- Attach all documents one by one.
- All attached documents are displayed in the “List of Documents window”.
- Click “submit” to submit.
- Wait for your certificate. Once the certificate is ready, you will receive a mail to that effect and the status of the registration will change and RC number generated.
A Summary Of The Company Registration Fees
Here’s a short summary of the company registration fees for a company with a one million share capital.
Search = 500 Naira
Filing Fee = 15,000 Naira
Stamp Duties = 8,200 Naira
Total = 23,700 Naira
This cost is only for a company with a one million share capital and could greatly differ depending on the share capital of the coy.
To Sum It Up
I hope you find this very helpful. However, I wish to state succinctly that the role of an accredited practitioner in a company registration can never be overemphasized. Do contact one for professional advice before carrying on with this process.
About The Writer
This is a blog post submitted by Amara Okafor. She is a lawyer, a writer, and a member of the Startup Tips Daily Media Team.
You can contact her through Startup Tips Daily Media for any further questions or enquiries concerning your business name registration and company incorporation.
Note: This article has been edited for style and substance.
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