Choosing a legal structure for your business in Nigeria, whether it is today old or you have been running it for a few years is a decision that needs to be made with a lot of clarity and certainty. This is because the structure of your business, whether as a Business Name or a Limited Liability Company (LLC) will determine your factors such as ownership, cost, liability, legal personality, management, fundraising ability, tax and regulatory requirements, etc.
For a better understanding, we’ll use a hypothetical founder named Tosan Ahmed. Tosan Ahmed is a Lagos-based entrepreneur running a fish farm business, supplying frozen and smoked fish to customers within Lagos. He started this business one year ago and has been able to maintain the business all by himself. However, his goal is to expand his business to at least four states in Nigeria and this requires capital investment. He has decided to either go to the Bank for a loan or approach a High Network Individual (HNI) for investment. Here are a few points Tosan should consider before choosing the structure that is ideal for him.
Formation: A Business Name is divided into Sole Proprietorship (also known as a one-man business, and Partnership. A Sole Proprietorship can be formed as a one-man business, while a Partnership can be formed by two (2) to twenty (20) people. A Limited Liability Company is categorized into Private or Public Limited Liability Companies. A private LLC can be incorporated by one person as a sole director or shareholder with a maximum of 50 members, while a public LLC must have a minimum of 2 members with no maximum limit.
Affordability: It is more affordable and inexpensive to register a business name compared to an LLC which can be more expensive to set up.
Transfer of Ownership: For a Business Name, the death or separation of the owner from the business immediately terminates the business because the owner is not separate from the business. However, for an LLC, the directors and shareholders are separate from the business and the death of any member of the business does not terminate the business as shares can be transferred to others.
Financial Liability: Where the owner (s) of the business owes a debt, the owners are personally liable for the debts in the case of a Business Name, unlike an LLC where the debts of the company are owed by the company and not personally by the shareholders of the company.
Legal Personality: In the case of a legal action, for a Business Name, the owner can sue and be sued directly, but for an LLC, the company can sue and be sued.
Documents: After registration of a Business Name, the owner received a Business Name Registration Number (for example – BN1234567), a Certificate of Registration and a Status Report but for a Limited Liability Company, the owner (s) will receive a Company Registration Number (for example – RC1234567), Tax Identification Number, Memorandum and Articles of Association and a Status Report from the Corporate Affairs Commission (CAC), which is the body responsible for formation and management of companies in Nigeria.
Raising Capital: It is more difficult to raise capital with a business name but it is relatively easier to raise capital with an LLC because the shares of the company can be used as equity in exchange for investment.
Tax Requirments: For a business name, the owners are expected to file and pay Personal Income Tax individually to the state body responsible for collecting taxes, for example – the Joint Tax Board (JTB); while for an LLC, the company is a taxable person and all taxes such as Companies Income Tax is to be filed and paid to the Federal Internal Revenue Service (FIRS)
These are some key points you or Tosan Ahmed, our hypothetical entrepreneur consider when choosing between a business name or a limited liability company.
When you are ready to begin, we can help you by setting up your company or business name without stress or complex paperwork. To get started with the incorporation process, go to www.corporatebestie.com/pricing to select a package that is right for your business.
Need further support? We are always available to help. You can contact us via email or send us message to our support team on WhatsApp
Like most people during the holidays, entrepreneurs and their employees commit time to spend with family and friends either traveling and/or celebrating. However, for a typical entrepreneur who is passionate about his/her business, there is the tendency to worry about how the business is performing or will do during and after the holidays. Here are some things to do in advance to protect your business during the holiday season.
1. Monitor your online presence: Keep an eye on your website, social media accounts, and online reviews to ensure that your business is represented accurately and positively. Watch out for comments on posts as well and be sure to have the right links and contact details so customers can reach you if necessary.
2. Secure your physical location: If you have a physical office make sure your store or office is well-lit and secure, and consider installing security cameras or hiring security personnel if necessary.
3. Protect your data: Set up a system to back up your data regularly, and implement additional security measures such as password protection and two-factor authentication (2FA).
4. Take precautions with holiday promotions: Be mindful of any promotions or discounts you offer or promised to customers, and be sure to clearly communicate any terms and conditions.
5. Protect your inventory: Keep track of your inventory levels, and consider implementing additional security measures such as inventory tracking software or hiring additional staff to help manage inventory so you know when you’re out and what needs to be replaced before resuming back from the holiday.
6. Manage cash flow carefully: Keep track of your financials and be prepared for any unexpected expenses that may arise during and after the holiday season. Stay prepared.
7. Communicate with your customers: Keep your customers informed about any changes or disruptions to your business, including opening and closing times, how to contact you if necessary during the holidays and be responsive to any questions or concerns they may have.
8. Stay informed about local laws and regulations: Be aware of any local laws or regulations that may impact your business, and take steps to ensure that you are in compliance. For example, the Corporate Affairs Commission recently announced that for Nigerian businesses, the National Identification Number (NIN) will be mandatory to access all its services (Read more). It is important to know these kind of information so you can stay compliant with it in your business.
9. Seek legal advice: If you have any legal concerns or questions, consider seeking the advice of a lawyer or other legal professional.
To get support with business incorporation and compliance requirements for your business, send an email to hello (@) corporatebestie.com
In order to serve thousands of entrepreneurs and micro, small and medium enterprises to formalize their businesses and stay compliant with business regulations, starting January 2nd, 2023, we are increasing some of our prices for new entity registrations, post-incorporation and cross-border expansion services.
The new price schedule is as follows:
A. New Entity Registrations:
Sole Proprietorship – From N15,000 to N20,000
Partnership – From N18,000 to N23,000
Limited Liability Company – From N35,000 to N45,000
B. Compliance/Post-Incorporation Services
Filing of Annual Returns – From N10,000 to N15,000
Post-Incorporation services – From N20,000 to N25,000
C. US Incorporation (LLC/C-Corps) – From $399 to $500
All our service timelines and bonus services such as tax identification number, business bank account and access to the Founder Toolbox still remain the same and we are working hard to ensure a seamless experience for all our customer and partners going forward.
With this new prices, we will be able to increase the size of our team, launch our brand-new web app, and introduce new features for an easy and seamless experience.
New Features To Expect in 2023: 1. New & improved website (Here’s a sneak peek)
2. Access to a personalized dashboard to track company incorporation processes and documents. 3. Access to more business success tools 4. Business features and capacity development programs 5. Automated compliance reminders and more…
We are excited to announce our 2022 Black Friday Super Deal starting from Monday 21st to Friday 25th November, 2022. This will enable Nigerian entrepreneurs to access more business opportunities, while also saving some money for other business activities.
“The Nigerian economy is ultimately driven by millions of hardworking, entrepreneurial, and resilient individuals who are currently creating jobs, shared prosperity, solving diverse problems with their businesses. Entrepreneurs and Micro, Small and Medium Enterprises (MSMEs) account for 96% of all business activities in the economy, with an estimation of over 42 million MSMEs, creating 47% of jobs and contributing 50% to the Gross Domestic Product (GDP). However, many of these “Business Heros” still lack the opportunities to grow profitable and sustainable businesses due to non-formalization. This is why we are excited about the opportunity to support more entrepreneurs to launch, formalize and grow their businesses through our Black Friday Deals”. – Bestie Atti, CEO of CorporateBestie says.
Entrepreneurs can earn up to N12,000 cash back when they use any of our New Entity Registration Services.
This Super Deal applies to Sole Proprietorship, Limited Liability Company, Partnership and Incorporated Trustees only.
Registration/Incorporation Documents, Tax Identification Number (TIN), Business Bank Account and access to other business success tools and resources are all inclusive.
Arlington, TX – Corporate Bestie, a technology company designed to support up and coming entrepreneurs, has announced that it has registered multiple new companies which are now open for business. The company provides support for these new businesses with the belief that entrepreneurship remains a proven, tested, and trusted strategy for social and economic development. Entrepreneurship through new business creation and cross-border expansion are necessities for both emerging and developed economies.
Bestie Atti, Co-Founder/CEO – Corporate Bestie
Corporate Bestie provides an all-in-one tool for entrepreneurs and enterprises to incorporate, manage compliance, and build cross-border businesses without stress or complex paperwork. Entrepreneurs can register with the company and receive access to registration/incorporation documents, a Tax Identification Number, business bank account, and regulatory compliance services, along with other tools and resources for business growth.
As the world slowly heals from the impact of the COVID-19 pandemic and continues to accelerate toward the fourth industrial revolution, new businesses in local and global markets essentially drive innovation, create new jobs, improve incomes, enhance productivity, and address societal challenges highlighted by the United Nations Sustainable Development Goals (SDGs). In Organisation for Economic Cooperation and Development (OECD) countries, Small and Medium-size Enterprises (SMEs) account for about 99% of firms and 70% of all jobs, and they contribute more than 50% of the Gross Domestic Product in high-income countries worldwide.
Corporate Bestie is actively registering new companies all the time, and routinely helps to promote these emerging markets on its various social media platforms such as Instagram and Facebook. The company believes that digital marketing holds a firm place in the advancement of new companies and helps new entrepreneurs to impact the global economy. Corporate Bestie supports its new clients by helping them identify problems and develop innovative solutions to solve those problems within their local communities or cross-border markets.
The company also helps these new companies to succeed where others have failed. According to available data, the failure rate for businesses in the United States, the United Kingdom, Canada, and Nigeria within the first 5 years is 50%, 60%, 30%, and 80% respectively. The factors that lead to the failure of these businesses and startups include limited knowledge and market insights, poor access to capital, poor corporate governance structures, slow adoption of digital technologies, poor access to the market, and poor leadership skills amongst others.
Bestie Atti, a lawyer, business expert, and co-founder of Corporate Bestie and Innovation Growth Hub is helping to mitigate these challenges. “Our mission is to ensure that anyone, anywhere who identifies as an entrepreneur and changing the world with their potential billion-dollar ideas have access to the tools and resources to start, manage and scale their business”. She says.
Serving customers across three markets – Nigeria, the United States, and the United Kingdom, Corporate Bestie makes it possible for entrepreneurs to easily obtain and access their business incorporation documents, tax identification number, business bank account, permits, and a ‘founder toolbox’ containing selected tools to help businesses succeed as they start and grow their businesses. CorporateBestie facilitates high rates of incorporation, business compliance, and cross-border expansion among entrepreneurs and enterprises thereby leading to higher rates of business formalization, continuity, access to capital, access to market, more consistent revenue flow, more job creation, and contribution to the global Gross Domestic Product (GDP)
Through her second company, Innovation Growth Hub (IGHub), a creative, business, and technology incubation hub, Bestie Atti and her team are helping to train and provide startup entrepreneurs and MSMEs with technology skills and tools to accelerate them for the 4th industrial revolution (4IR). IGHub has completed entrepreneurship and digital transformation programs for companies such as Google, Meta, Ford Foundation, Foundation for Partnership Initiative for the Niger Delta (PIND), and First Bank of Nigeria, among others which impacted over 30,000 individuals and MSMEs.
Ms. Atti is an alumnus of Founder Institute, a silicon-valley-based pre-seed accelerator and the most proven network to turn ideas into fundable companies. Since 2009, Founder Institute has launched over 6,000 companies that have raised over $1.75BN in funding and are building meaningful businesses across 200+ cities and 95+ countries. She is also a startup mentor on the Tony Elumelu Foundation Entrepreneurship Programme, the largest African philanthropic initiative committed to empowering African entrepreneurs.
Corporate Bestie is set to launch its #100kFounders project this November to provide entrepreneurship education, business formalization, financial inclusion, and digital transformation for one hundred thousand entrepreneurs in disadvantaged and underserved communities across Nigeria and America. The project will target solutions that can address the world’s most pressing challenges via entrepreneurship and innovation.
Corporate Bestie is an online service for entrepreneurs to register their businesses and build cross-border companies, gaining access to registration/incorporation documents, a Tax Identification Number, business bank account, and regulatory compliance services, along with other tools and resources for business growth.
