CLASSES OF COMPANY SHARES

CLASSES OF COMPANY SHARES

Definition of Shares The subject ‘shares’ is a fundamental concept enshrined in the very core of the Nigerian corporate practice. Hence, it is imperative that anyone who intends to start or run a company successfully should have the knowledge and eventually be grounded in its roots. A share according to section 868 of CAMA 2020, is “the interests in a company’s share capital of a member who is entitled to share in the capital or income of such company…” in other words, a company is only able to generate shares from the contribution of its members in exchange for an...

WHAT IS THE MINIMUM SHARE CAPITAL REQUIREMENT FOR REGISTERING A COMPANY IN NIGERIA

WHAT IS THE MINIMUM SHARE CAPITAL REQUIREMENT FOR REGISTERING A COMPANY IN NIGERIA

One of the distinguishing attributes of a company from other types of business entities we have in Nigeria is that every company must have a share capital. However, the number of shares to be attributed to a company, especially during registration, depends largely on various factors one of which is the nature of the business activities of the company or industry the company will operate in. In this article, we will be examining a list of minimum share capital requirements for registering a company in certain sectors in Nigeria. WHAT IS A SHARE CAPITAL? A share capital of a company...

DO NGOs PAY TAXES IN NIGERIA

DO NGOs PAY TAXES IN NIGERIA

Its common knowledge that NGOs are primarily not created to generate profit. But it would interest you to know that NGOs in Nigeria are not totally exempted from paying taxes. Shocking right? In this article, we examine to what extent NGOs in Nigeria are exempted from filing and paying taxes as well as under what circumstances they will be required to pay or remit taxes. Meanwhile, if you own a business in Nigeria and you’ll like to know more about what taxes your business ought to pay, where to remit taxes when to pay/remit taxes as well as how to...

CAN I GET COMPENSATION FOR DELAYED OR CANCELLED FLIGHT?

CAN I GET COMPENSATION FOR DELAYED OR CANCELLED FLIGHT?

Download presentation here Imagine booking your flight with an airline for a future date, and ahead of time only to be told on arrival that your scheduled flight has been cancelled without any prior notice or You scheduled a flight ahead of time to make it to an important meeting in another city only to be informed on arriving at the airport that your flight has been rescheduled to a subsequent time or day. How would that make you feel? Angry, Teary, Sad, etc. Not to mention the extra resources needed to be spent for staying longer than you planned....

CBN REGULATORY SANDBOX PROGRAMME – EVERTHING YOU NEED TO KNOW

CBN REGULATORY SANDBOX PROGRAMME – EVERTHING YOU NEED TO KNOW

If you have ever considered setting up a fintech platform in Nigeria, you will agree that the entry barrier into the fintech space has been raised high with increased share capital requirements to be deposited in escrow while applying for a CBN license, not to mention other regulatory requirements which must be followed to the latter in other to gain the requisite license. This restriction makes it difficult if not impossible for innovators within the space with little to no capital to nurture their dreams to light. It is as a result of this, that the Central Bank of Nigeria...

HOW TO REGISTER AN NGO IN NIGERIA AS A FOREIGNER

HOW TO REGISTER AN NGO IN NIGERIA AS A FOREIGNER

Are you a foreigner with a desire to set up a non-profit organization or promote a non-profit-related cause in Nigeria? In this article, we’ll address concerns with respect to setting up your NGO in Nigeria as a foreigner. Before we proceed, it is important to note that the Companies and Allied Matters Act is the framework for the registration and operation of business entities and non-profit organizations in Nigeria. It is the law that guides the registration of non-profit legal organizations. The process and method of application for registration of non-governmental organizations are provided for in the CAMA 2020 under...

HOW TO FILE ANNUAL RETURNS IN NIGERIA

HOW TO FILE ANNUAL RETURNS IN NIGERIA

By virtue of the Companies and Allied Matters Act (CAMA) 2020, every business or non-profit organization (i.e. business name, company, or Incorporated Trustee) registered in Nigeria, with the Corporate Affairs Commission, is required to file its annual returns regularly and up to date. In this article, we will be explaining amongst other things, the meaning of annual returns, why it’s important for registered organizations, and the requirements for doing so. WHAT ARE ANNUAL RETURNS? Annual returns are a legal obligation required by all types of entities registered with the Corporate Affairs Commission (CAC) in Nigeria, to confirm that they are...

HOW TO SPLIT EQUITY AMONGST CO-FOUNDERS IN A STARTUP

HOW TO SPLIT EQUITY AMONGST CO-FOUNDERS IN A STARTUP

A common concern experienced by co-founders, particularly at the early stages of starting a company is that of how to divide equity amongst themselves. If you currently have similar concerns, I can assure you that it’s a valid issue to be addressed between you and your co-founder(s), particularly before the company is formed as it will enable all involved to address uncomfortable aspects of starting the journey so as to avoid conflicts which may arise afterward. What are shares/equity in a company? Shares and equity are used interchangeably. Shares are a unit of ownership of a company and are offered...

HOW MANY PERSONS DO I NEED TO REGISTER A C-CORP IN DELAWARE

HOW MANY PERSONS DO I NEED TO REGISTER A C-CORP IN DELAWARE

For several reasons, the State of Delaware seems to be the State of choice for African startups. This does not however mean that there are no benefits that come with setting up your company in other States in the US, particularly as a non-US resident. In our previous article, we considered another State in the US that could be a good option for non-US residents as well as how to determine which State is ideal for your business goals. You may check it out here. As a non-US resident, registering a company in a new territory can be tasking. You...

WHAT TO DO AFTER REGISTERING YOUR COMPANY IN THE US

WHAT TO DO AFTER REGISTERING YOUR COMPANY IN THE US

If you’ve gotten your company registered in the US, congratulations are in order. However, while having your company registered in the US is one thing, maintaining the registered status of same is another. In this article, we’ll be sharing a few important tips we believe will help you with maintaining the good standing of your company with the United States government especially in situations where you had your company registered in the US as a non-resident. WHAT TO DO AFTER HAVING YOUR COMPANY REGISTERED IN THE US AS A NON-RESIDENT 1. Get your Employer Identification Number (EIN) The EIN is...