Steps On How To Register Your Dream Company in Nigeria

In this piece, I will highlight the required particulars for registering a company in Nigeria. When I say register a company in Nigeria, I mean registering a limited liability company. Let me start with the reason that motivated this piece.

In 2011, the UK Government described Nigeria as the fourth fastest   growing economy in the world. Since then, Nigeria has retained its position as Africa’s number one destination for foreign direct investment, according to the global FDI report, released by the United Nations Conference on Trade and Development. This piece will therefore focus on how to register a company in Nigeria as a starting point in doing business in Nigeria.

Share Capital & Issued Capital
Share means the part allotted or belonging to one of number persons owning together a company. The amount of rights attributed to a person in a company usually calculated in money terms.


The general minimum amount of shares usually registered in Nigeria is one million (1,000,000) units of shares and each unit must have its value. Although, you can register any amount of shares but it is easier to calculate and round it up to a percentage. Secondly, registering less than a million units still attracts the same stamp duty and filing fees. Thirdly, within some fiscal months or years, you will be considering upgrading the units of shares because of the high Return on Investment (ROI) in Nigeria.  This upgrading will add to the running cost of the company.

The law requires the subscribers to the memorandum of association to issue at least 25% of the authorised share capital i.e. for example 25% of 1,000,000. This does not mean that that you have to have a million Naira in order to register a company. It simply means that, and it is generally assumed that you should have at least 25% of the authorized share capital to start the business.

Number of Shareholders
The law requires a minimum of two and a maximum of fifty persons for incorporating a limited liability company whether private or public. Minors and infants can also be shareholders as long as there are at least two other adults. Minors are people under 18 years of age.

A business name does not require a shareholder or share capital. It is used by sole proprietors or one man businesses.

Number of Directors
The law requires a minimum of two directors and the directors must not fall within the following categories of persons – people of unsound mind, bankrupt and minors. Minors or infants can be a director in the company as long as there are two other adults with capacity listed as Directors in the company.

Steps in Registering a Company in Nigeria
Availability and name reservation can be done through the statutory body in charge of companies in Nigeria i.e. the Corporate Affairs Commission (CAC). The promoters of the company will provide two names and CAC may approve and reserve one out of the two names, if any of the names are available, for a period of sixty days. The search process officially takes between 3 to 7 business days but it can extend to 21 business days in some cases. However, a search can be done within 24 business hours to selected clients.

We advise you always provide a unique name to your solicitors to expedite the search process. purposes

Source: Nigerian Law