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 business formation of a company to 1 person. It further seeks to create “Limited Liability Partnership” as a variant of the existing “Partnership”.
Interestingly, small companies would be uncompelled to engage the services of a company secretary or hold an annual general meeting while the minimum share capital for companies and startups would 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.
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