You are proposing or planning of launching a new company and want to know the minimum number of persons who can become members of the company.
While planning and budgeting on launching a company,one is faced with a lot of questions bothering on the formation of the company, the legal status of the company, what is the criteria or requirements for such category of company, and other pre-approval requirements for the formation of the company.
We shall provide you a guideline on how to open a company in nigeria,requirements and procedure in opening a company in nigeria, how to register a business name in nigeria,the minimum number of persons required to open a limited company in nigeria, and other categories of company in nigeria.
The federal government of Nigeria, under the companies and allied matters act 2020, has reserved the duty of pre-incorporation and post incorporation of companies,businesses and associations to the corporate affairs commission.
Under the extant Law, the provisions of section 18(1) of the CAMA 2020 Law, states the Minimum number of persons capable of forming a company or business in Nigeria.
Under the Act,it is businesses and companies doing business for profits and gains are captured under Part B of CAMA 2020,While Part C of CAMA deals on associations and corporations set up for non-profit ventures.
The companies and allied Matters Act 2020, departed expressly from the provisions of CAMA 1990, by making novel provisions.
The change is noticeable in sub-section (2)of section 18 of CAMA 2020, which expressly stated that Notwithstanding Subsection 18(1), One person may form and incorporate a private company,by complying with the requirements of this ACT in respect of private companies”.
The registration of a public company by one person cannot be approved by the foregoing provision.
The Minimum number of person for the purpose of formation of a company in Nigeria is one.
This also means that the minimum number of persons, for the purpose of registering a private company whether limited by shares, guarantee or unlimited is one.
Required to say, that the maximum number of people who can form a company,for purpose of trading or profit is twenty.
The ACT does not permit more than twenty persons to form a company for purpose of profit making.
The express prohibition is to regulate the number of people who can form and operate a profit ventured company.
In the event An association of persons numbering more than twenty wants to register an association,it shall be done under PART C CAMA.
In Part C CAMA, An association of more than twenty persons can register as a company but cannot register for profit purpose.
EXCEPTIONS TO MINIMUM NUMBER OF PEOPLE FORMING A COMPANY UNDER PART B CAMA.
Under the Part B CAMA, A partnership of persons qualified to carry on practice as legal practitioners and Accountants in Nigeria are exempted. from the limitations.
Also, A group of persons registered as a corporative society are exempted from the limitations.
In opening a business name in Nigeria, one need to meet up with the requirements .
How to register a business name in Nigeria,Procedures might be very simple, but it is quite technical.
Find a cac consultant and submit your proposed business name .
Also Submit your personal information,such as date of birth,identity card and email address.
it is quite affordable, you can contact us if you need this service.
In the event you are interested in opening a company in Nigeria, you need to know the categories of company you will like.
In Nigeria, there are limited liabilty company,(LLC) limited partnership(LP), and limited liability Partnership(LLP) Companies.
The difference between the three categories of companies lies in their features.
LIMTED LIABILTY PARTNERSHIP FEATURES IN NIGERIA
i. it is simply a partnership arrangement that can take up to twenty partners.
ii.Partners has distinct personality from the company.
iii. Limited liabilty of partners based on their agreement in the event of company winding up.
iv.Minimum of two partners is required to form it.
v. Only individuals can be partners
vi. At least One Designated Partner must be resident in Nigeria.
vii. The name of the Partenrship shall end with LLP.
FEATURES OF A LIMITED PARTNERSHIP(LP).
i. There must be A GENERAL Partner and a LIMITED Partner.
ii The liabilities of a General partner is unlimited
iii. The liabilities of a Limited partner is limited
iv. The limited number of persons in this is twenty.
v. The partnership name ends with LP.