Legal Compliances for Business Organizations and Individuals in Nigeria -P. D. Pius, Esq.

1. Registration with relevant regulatory bodies. There are so many regulatory bodies that you expected to register with. We have the Corporate Affairs Commission, EFCC, NAFDAC, CBN, SON, Ministry of Trade and Industry, NOTAP, NDPC, NPA, NCAA, DPR and so many others. A lawyer will advise you one registration required for your particular business. We can also advise you on whether it is a business name registration you need or a company and if a company, what kind of company. We have limited liability companies, we have company limited by guarantee, public limited companies, group of companies, holding company among others. The share capital required for different kinds of business or companies depends on the objectives of your business. For instance companies with foreign participation requires 100M share capital.
2. The registration needed and the type of business organization to be formed is dependent on the proposed objectives and size of the business.
3. Commencement of business and contract forms. Virtually all transactions you do in your business is a contract. Contract simply means any agreement or transaction that is binding or will be enforced by law. We have oral contracts and written contracts. Some written contracts are LPOs, Invoice, Receipts, Credit alerts, MOUs, Agreements, Deeds, Technology Transfer Agreements, Leases, Licences, etc. It is important for business owners to have well drafted contracts or terms and conditions for their services to avoid legal challenges.
4. Business branding as intellectual property. For start-ups and small businesses, your intellectual properties are valuable. They are your ideas, inventions, brand, trade secrets etc. Logos are trademarks. Services are registered as trademark. Patterns are registered as designs. Inventions as patents. We also have trade secrets which are protected by contracts. These can be your list, catalogue, customer list, product list, pricing strategy, production strategy etc. Intellectual properties can be bought, sold, license or transferred from one business to the other.
5. Staff and Labour Labour requirements. There is a difference between contract for service and employment contract. Employment contract is also different from apprenticeship contract. We also have other workers like interns, NYSC Corp members and volunteers. It’s important to properly define the exact legal relationship between you and your workers because each legal relationship has different legal consequences. The National Minimum wage of N75,000 applies to both public and private businesses once you have up to 25 employees.
6. Business revenue and tax obligations. You have tax obligations as an individual and as a business. VAT is 7.5 of all revenue. CIT is 25% of taxable income. Personal Income Tax is minimum of 1%. Annual Returns to CAC is different from Tax obligations. There are also other regulatory filings and renewals. A consultation with a lawyer with properly guide you on all of these.
7. Moving your business from sole proprietor or self employed to Small Scale Enterprise or Large Company Requires a board. You need experts in your board of directors to get the job done.

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P. D. Pius & Associates Law Firm