The Legal Requirements For Starting A Small Business In Nigeria
There are many legal requirements for starting a small business in Nigeria. Before you decide to establish a business, you should know that it is exciting as it is also challenging.
After you must have done your due diligence in researching your business, writing a concise business plan and deciding your business structure, you must never fail to consider the legal requirements your business, especially in the country Nigeria.
You must sure you have all the licenses and permits needed for the smooth running of your business. This article will be exposing five major legal requirements for starting a small business in Nigeria.
Five Legal Requirements For Starting A Small Business In Nigeria
In Nigeria, there are many people operating their businesses without having it registered with the necessary body.
Before you start your small business in Nigeria, make sure you are registered with the corporate affairs commission (CAC) of Nigeria.
There are corporate affairs commission offices in every state of Nigeria. If you don’t register your business with CAC, then you are at the risk of running into a serious problem in the future with this institution.
Believe me; you don’t want to be at loggerheads with CAC in Nigeria because it won’t end well for your business.
One of the benefits of registering with CAC is that your business name will be only used by you, and anyone that tries to use your business name for his/her own, you can sue that person for damages.
Register with the federal inland revenue service (FIRS) of Nigeria
This is also one of the legal requirements for starting a small business in Nigeria. By registering with the Federal Inland Revenue Service (FIRS) of Nigeria, you are automatically a taxpayer to the Nigerian state.
You must never evade paying your tax to the Nigerian government because if you are caught, you are at the risk of losing your entire business establishment as it will be confiscated by the Nigerian government.
Register with the state and local government tax offices
Wherever your business establishment is located in Nigeria, it must be within a particular state and local government.
You must also be registered with these local and state government internally generated revenue agencies so as to have a smooth running of your business without their hindrances.
This is also one of the legal requirements for establishing a small business venture in Nigeria. These tax obligations are really for the longtime benefit of your small business venture.
Obtain business permits and licenses
These are formal documents that allow you to operate your business locally in Nigeria. it is issued to individuals through the ministry of interior.
Before you are given these business permits, you must have copies of tax clearance certificate, CAC form etc.
Without these business permits and licenses and licenses, you can never be allowed to operate your business freely in Nigeria.
You must obey business laws and regulations of Nigeria
There are certain laws and regulations that guide every business operation in Nigeria, for standard business and service delivery to her citizens.
As a businessman within Nigeria, you are by law mandated to obey these laws to avoid being caught by the long arm of the Nigerian law.
The Standard Organization of Nigeria (SON) and National Agency For Food, Drug Administration And Control (NAFDAC) are the national bodies that are in charge of certifying that your business services and products are good for public consumption.
You must deliver your business products and services to the standard of SON and NAFDAC.
These legal requirements for starting a small business in Nigeria are very important to you as a business starter.
Never take them lightly because, without any of them, you are operating illegally in Nigeria, and your luck will certainly run out one day.