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Before we move on to discuss the relevant provisions of the law, there are certain considerations you should be aware of if you are looking to start a business.
Issues for Considerations Prior to Registration
The BusinessIt is not only necessary but crucial that you know and to the extent possible, understand the type of business you want to do before you commence the registration process. This helps in determining the right registration vehicle to use.
This is different from the other registration options as it is applicable to not for profit ventures such as foundations amp charities, religious organizations, non governmental institutions amongst others.According to information presented on the Corporate Affairs Commission(CAC) website http//new.cac.gov.ng/home/resources/ (the Commission regulating registration and operation of businesses in Nigeria), from January September 2015 there were 54,587companies incorporated, 34,774business name registrations 6,809incorporated trustees.
Other Relevant Considerations
There are also other issues to consider in determining the type of business vehicle, including the following1. Initial Capital Outlay generally, the registration of a company involves more capital outlay than that of a business name.
Start out as a sole proprietor, if you then decide to do this full time or grow exponentially, it may be time to reregister as a company.3. Liability of Members With most options for business name registrations (sole proprietorship and partnership), the liability of the owners are usually unlimited, this means that any liability accruing to the business could be extended to the owner.