Nigeria seeks to reform company incorporation process

15/08/2008

The Corporate Affairs Commission (CAC) in Nigeria is setting out on a path of reform in order to encourage more businesses to register companies in the jurisdiction.

Ahmed Almustapha, the CAC's registrar general, told local publication This Day: "Yes, the government is talking of reforms and we are talking of reform... Since the world is changing, organisations also have to change."

The Corporate Affairs Commission (CAC) plays a central role in the facilitation of business, trade and investment in Nigeria. It is the first port of call for people who want to register companies, and has a direct bearing in the setting up of businesses.

Research has shown that businesses are often confused about how to register company names with the CAC, and this is something Almustapha has pledged to tackle. One such element of confusion a wide-spread belief that the CAC requires people to go through agents in order to incorporate a company in Nigeria.

In actual fact, only one of the three types of business registration requires an agency to act as intermediary. Registering business names and creating non-governmental organisations can be done without an agent. Only the formation of a limited liability company requires such an intermediary.