Guarantee-restricted business units are often administrative terminologies used to refer to not-for-profit organizations or not-for-profit corporations. The share capital of these companies may be unlimited, but the liability of their shareholders is minimal. The Company does not intend to generate additional profits and therefore does not trade on public exchanges, and the revenues generated are solely for the purpose of encompassing the Company`s objectives and not additional reasons. In terms of brand preference, there are no specific brands that fascinate the Nigerian public, whether domestic companies or foreign conglomerates. Such behavior points to consumer psychology, which offers significant comfort to new businesses by trying to impress the neutral consumer population in the alpha economy of the African continent. Amid the excitement of starting a business in Nigeria, one should always consider the type of business entities that can legally exist under state regulations to do business at Nigerian borders. The legal authority responsible for setting up companies in Nigeria is the Corporate Affairs Commission (CAC), established by the Companies and Related Matters Act No. 1 in 1990. Below is a matrix that shows a comparison of different factors to consider when choosing your business structure: A sole proprietorship is the most basic business structure, and it is relatively easy and inexpensive to establish. A sole proprietor is legally responsible for every part of their business. It is usually he who makes all the decisions concerning the creation and operation of the company, as well as employment. This is the most popular option for new entrepreneurs or those who want to supplement their regular income with a parallel business. Ownership of the copyright belongs to the creator of a copyrighted work, who is generally referred to as the «author» of the work.

He/she mainly owns the copyright in the work. However, the author is free to assign his rights to a third party. In such a case, the person who acquired the right by transfer or other legal means becomes the owner of the copyright. This type of business is usually a preferred choice for large companies or expanding companies. Unfortunately, from my experience, it seems that many entrepreneurs do not pay much attention to the structure of the company. In the long run, this can have serious consequences for a business. The different business structures allowed in Nigeria are – registered company name, joint-stock limited liability company, limited liability company, unlimited liability company (all companies can be private or public) and registered trustees. As a separate legal entity, the company may hold real estate or assets in its own name. Examples of real estate or assets that a company may have are land, buildings, personal property, intellectual property, shares, etc.

i. What are your company`s short-, medium- and long-term goals? The public company is a more transparent business entity that operates in the market and is required to publish its performance statement and financial records annually in accordance with its corporate governance regulations. This type of business structure is best suited for large companies with more ambitious plans. Thus, the specifications of public companies considering establishing themselves in Nigeria are – 2. Company Names: In addition to registering your company, you can also register your company as a company name with the Corporate Affairs Commission in Nigeria (CAC). In Nigeria, sole proprietorships and partnerships can be registered as company names. Before entering commercial structures, it is important to remember that a company must meet the following legal requirements: A public limited company separates the company`s business assets from the personal assets of its owners. Vivian Umelue is a lawyer and legal model programmer at Wonder.Legal based in Nigeria. The Companies and Related Matters Act, Cap C20, Laws of the Federation of Nigeria, 2004 (CAMA) is the main law that controls Nigerian companies. Here are the different business structures of Nigeria: All partners in a partnership share the profits and losses of the partnership as well as the risks. This is because they are all owners of the company.

The partnership contract does not have to provide for equal shares, as they can share according to the share of their contribution or their share of ownership, according to the agreement between the partners.