Recently, the Nigerian Senate passed a bill to revoke and reenact the Companies and Allied Matters Act. An individual intending to form a company can explore beyond the sole-proprietorship option. The proposed Act would reduce the “2 or more persons” requirement for the business formation of a company to 1 person. It further seeks to create a “Limited Liability Partnership” as a variant of the existing Partnership.
Interestingly, it will not be mandatory for small companies to engage the services of a company secretary or hold an annual general meeting. The minimum share capital for companies and startups will also reduce. Investors can now register a company from a remote location using the e-registration portal. Overall, these revisions should improve the ease of doing business in Nigeria, foreign direct investment, and enhance Nigeria’s global competitive index.
To download a copy of the Companies and Allied Matters Act 2020 presented to the Nigerian President, click here.