Any conflict between Nigerian Accounting Standards and International Accounting Standards should be resolved in favour of the Nigerian standards.
Business in Nigeria
Nigeria, officially known as the Federal Republic of Nigeria, is a country in West Africa, which happens to be the largest economy of Africa, growing over 6-7% annually. Nigeria is the most populous country in Africa, and the 7th most populous in the world, with a huge base of young population. The bulk of the nation’s economy relies on the export of oil, with some cocoa and rubber also being exported.
Nigeria is the largest market in sub-Saharan Africa with a reasonably skilled workforce for the efficacious management of investment projects in the country. It is well connected by a wide network of motorable all-season roads, railway tracks, inland waterways, maritime and air transportation.
Company Incorporation in Nigeria
To concretize a business idea into a company in Nigeria, you can choose from among the following legal entities.
1. Sole Trader
A sole trader company is owned by a single person. It is the simplest form of business entity, not mandatorily requiring a company registration. In such a company, the sole trader is personally responsible for all aspects of the business and has unlimited liability to all debts and obligations.
2. Private Limited Company
A private limited company is an entity separate from its shareholders, who enjoy limited liability, i.e., their personal possessions remain separate, and their risk is reduced to only the money they have invested in the company. The requirements for incorporating a private limited company in Nigeria are:
- The total number of members in the company must not exceed 50, excluding those who are employees of the company
- The company must have a registered office in Nigeria
- A minimumof 2 people above 18 years of age must subscribe to the Memorandum &Articles of Association (MAA)
- The name of the company must not be the same as any other company name currently held in the registry of the Corporate Affairs Commission (CAC)
3. Public Limited Company
A public company, unlike a private limited one, is allowed to be publicly listed and sell its shares to the public.The cost of running a public limited company is considerably higher than that of a private limited liability company. Therefore, a public limited company is better suited for large organizations.
4. Guarantee Company
A guarantee company is not meant for profit purposes and set up generally by charitable organizations. Such a company does not have a share capital, and the members do not own the company, nor do they receive any profits. They also have no claim to the company’s assets. All income generated by a guarantee company is used to cover its operating costs and to achieve the objectives of the company.
Benefits of Company Incorporation in Nigeria
A company in Nigeria enjoys the following benefits:
- Nigeria is abundant in natural resources, like minerals and vegetation, which are yet to be fully tapped.
- The country has a free market economy and a politically stable environment.
- The population base of over 170 million people makes for a huge consumer market.
- There is an abundance of skilled and affordable labour, leading to low production costs.
- Exchange control regulations in Nigeria have been liberalized to facilitate the free flow of international finance. Now there is unrestricted movement of investment capital here.
Who We Are
Business Setup Worldwide is a platform to help you start your company in Nigeria. We facilitate the setup of your business through services like company incorporation, registration, business advisory and tax consultation services.
We keep your business objectives at the centre of our operations. We specialize in business-oriented support activities, in face of the ever-changing global executive environment. We take pride in our ability to adapt to the market and devise innovative strategies to aid firms with their vision.
Business Setup Worldwide's proprietary business design techniques, combined with its specialized industry knowledge and global reach, enable companies to anticipate changes in customer priorities and the competitive environment, and then design their businesses and improve operations to seize opportunities created by those changes.
BusinessSetup Worldwide helps businessmen, entrepreneurs and investors establish their company in Nigeria through consulting, incorporation, registration and legal consulting services. Our experts take care of the entire Banking, Visa, Legal, and Licensing formalities, and allow corporates to enjoy their company formation process without worrying about the bureaucratic red tape and legal formalities. We guide you through your company formation, with your business objectives at the centre of our ecosystem, all the way. If you are thinking of incorporating a company in Nigeria, do reach out to us.