Achieving success in any enterprise entails the ability to build same From the scratch using all the necessary tools applicable in any given area. The goal of every business man within the above background is to grow his business With little or no hitch, then become successful and established within an expected possible time.
Achieving your goals in business requires that every Entrepreneur must follow the basic and acceptable blue print. This is an acceptable standard Globally, such a way that every country have Laws and regulatory Bodies that ensures compliance with those laws when it comes to having a solid foundation in any given enterprise. These laws varies from each other in every country and depending on the p local circumstances prevalent in any given country. These are simply the foundations that will help you grow your business and give it the necessary exposure it requires. The foremost foundation to grow your business is "Taking Steps To Register A COMPANY,.Business Name and foundations such as NGOs and Religious Organisations.
When your Business is registered ( either as a Company, Sole Proprietorship and Foundation ) it has assumed a full corporate status, according it all necessary rights and liabilities under the Law. By this alone, you must have given your business it's first exposure. Within the Nigerian Legal context, Under the Companies and Allied Matters Act LFN 2000 (CAMA), Companies assumes the status of "Artificial Person" such a way that it has the capacity to sue and be sued. If your business is registered under Business name ( Sole Proprietorship), your business and it's name is registered such a way that no other person can trade under the name and style of that name.
Differences Between A Company, Business Name And Foundation.
Within the Nigerian context enshrined in the Companies And Allied Matters Act (LFN) 2000 being the extant Law regulating Businesses Nigeria; Companies, Business Names and Foundations are registered under Part A, PART B, PART C respectively. Each having requirements for incorporation properly outlined.
A company is registered under Part B of the Companies And Allied Matters Act ( CAMA ) we have different classes of companies under this category, but our focus will be on Company limited by share, being the most prevalent within the Nigeria context. We have public and private companies limited by shares, each having their basic share capitals and regulations under the law. The basic ( most popular and affordable) one a new business can start with is a Private company limited by share. These requires the following:
I. Subscription to Shares: Those not familiar with the corporate world usually confuse subscription to share capitals as a requirement for incorporation to Start up capital or registration expenses. On the contrary, subscription to share capital is by way of payment of stamp duties. Within the Nigerian context, the basic share capital for a company is #1,000,000 share only payable in terms of stamp duties via the Federal inland Revenue Services (FIRS). For every one million share capital, anyone who wants to incorporate his company is required to pay approximately the sum of #10,000 ( Ten Thousand Naira) to FIRS. That's to say, if you are subscribing to two million share capital, you are only required to pay approximately the sum of #20,000) Twenty Thousand Naira Only. Sequel to the above you are only required to pay stamp duties and filing fee to corporate affairs commission for your company to be registered.
ii. Share Holders: The companies and Allied Matters Act requires that at the point of incorporation,.there must be two subscribers to the shares of the proposed company. The least is two and can be more than that, and each must subscribe to at least one unit of the share of the proposed company before incorporation. Moreso, all the shares must not be allotted.
iii. Directors: under the Act ( CAMA) a proposed company must have two directors,.of which the first two subscribers can also be the same as the First Directors. The Directors are charges with the running of the affairs of the company. Infact they are the life of the company, since a company is an artificial person under the Law.
In a nutshell, a company has perpetual succession, meaning that it's first directors can be changed or rotated and still continues to exist. Even the demise or removal of the first subscribers and directors cannot cause the death of a company.
A BUSINESS NAME is registered under Part A of the Companies and Allied Matters Act. This category is usually a Sole Proprietorship where the business is managed by one man. In a common parlance it is called one man business. There is no subscription to Shares and there is no requirement for Directors. The owner can decide to end the business anytime he likes. This is common with people who run retail shops, Point On Sale (POS) Business Etc.
A FOUNDATION is registered under Part C Under the ACT ( CAMA). This category is meant for non-profit organizations who is aim is for charitable causes. These usually require a minimum of five (5) Trustees. Organisations under these categories are, Churches, NGOs, and other Non-Profit Organisations.
The fallout of the above is the fact that registered Businesses basically enjoy lots of benefits, incentives and more prospects from the Government acting through our Laws. In view of this, here are other benefits of registering your Business:
1. Operation Of Corporate Current Account
Corporate Current account is a Business account that bears only the name of the business it is registered with. This is different from individual savings/Current account where accounts are opened in the name of individuals. Registering your Business gives you the leverage of operating a Corporate Current Account which have so many benefits for business owners. The basic advantage is that customers will be confident enough to deal with you having the knowledge that they are.dealing with and making payment to a company instead of an individual for a Business.
2. Easy Access To Loan Facilities
This is the fallout of operating a Corporate Current Account. In most cases ( and according to Bank) when accounts under this category is operated for a minimum period of Three months, the business can assess a business loan. Though this loans have varying interest rates and Conditions.
3. Access to Incentives And Benefits From Government
Registered Businesses have Since becoming corporate are given recognition under the Law in that they are pivotal to economic growth. In view of this, Government issues periodically grants, incentives to small businesses especially in the area of curbing unemployment provided they are compliant with the Law. Most registered business have from time to time partnered with most administration in fulfilling their business agenda for the country.
4. FREE TRAININGS AND SEMINARS
Registered Companies, enterprises and non- profit organizations from time to time enjoy free seminars and trainings from government and international organisations.
In a nutshell, Registering your business accords one that recognition as a registered business owner, same which also accords one the status of a tax payer in the eyes of the law of which there is adequate protection accorded depending on the scenario.
For further guideline and consultation on how to go about with the incorporation of your Business, reach us via osakwelaw@gmail.com or via WhatsApp https://wa.me/message/KDNIF4PDAGHAD1
Victor Osakwe Esq©
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