Nigeria has relaxed the statutory requirements for incorporating new business ventures and allow the use of the internet to set up business meaning that statutory enterprises can be incorporated by individuals from anywhere in the world.
A new law passed by the Nigerian senate this week: the Companies and Allied Matters Act (CAMA) allows a company to be registered from anywhere in the world. Incorporated entities may be set up via an online window saving time and cost to initiate business ventures in Nigeria.
It’s a major step on the country’s ladder on ease of doing business. It will fast track how foreigners may engage Nigeria’s vast business opportunities.
The new CAMA will “allow business owners to now register their businesses in a faster and more efficient way — using technology; remove all the unnecessary regulatory provisions — such as the requirement for annual general meetings and company secretaries; and reduce the minimum share capital for all companies and start-ups in Nigeria,” according to an official statement by the senate.
AGM no longer mandatory
In addition, the law no longer makes it mandatory for annual general meetings (AGMs) to be part of the statutory demands for a company to be said to be in operation.
The law also recognises ‘Limited Liability Partnership (LLP)’ as a new form of legal identity for businesses in Nigeria to increase foreign investment and enable Nigerians register their businesses online.
“With the passage of CAMA, which is by far the biggest and one of the most far-reaching legislation ever passed in any legislature in our country, we have now put in place a regulatory framework to promote the ease of doing business and reduce regulatory hurdles,” said senate president Bukola Saraki.
“This is a pro-business law. This bill that we have just passed will show the audacity that we have to move Nigerian businesses into a new era of success and development,” added the Saraki.