What is a Limited Liability company?

What is a Limited Liability company?

This type of corporation is where the liability of the shareholders is limited to the quantity of share capital of each shareholder if ever the Company is liquidated.

The procedure to register a Limited Liability Company in Nigeria requires the followings

  1. The company must have a registered office in Nigeria
  2. The company must not share the same name with any company registered with Corporate Affairs Commission (CAC)
  3. At least one person for a small company or two people for a big company must subscribe to the memorandum of understanding (MOU) and articles of association.
  4. The total number of members in a private limited company should not be more than 50. This does not include the legal employees of the company.
  5. The authorised share capital shall not be less than 10,000
  6. The Director(s) must be 18 and above, of sound mind and not bankrupt
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I guess you would want to know the procedures to get your company registered as a Limited Liability Company in Nigeria

  1. The first step is to submit two proposed names to the CAC for an availability search.
  2. Complete information regarding the directors, shareholders and secretary of the company must be provided such as Full name, Residential Address, Age, Nationality, Valid identifications documents, etc. There can be a maximum of 50 members and the director(s) should be above 18 years of age.
  3. The shareholders of the company become a part of the Memorandum and articles of association and are allocated shares in the company.
  4. The company must submit a name not similar to any other company name in the CAC register.
  5. Appointing a Company Secretary is no longer a legal mandate for every Nigerian company but may be desirable. No formal qualification is required to be a company secretary of a private company limited by shares. Public companies are however mandated to appoint qualified secretaries.

In conclusion, a limited liability company must be incorporated with the CAC in accordance with the Companies and Allied Matters Act 2020.

 

 

 

 

 

 

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Greengold Attorneys is a progressive, dedicated law office aspiring to be one of the leading corporate and commercial law offices in Nigeria and the World at large. It was founded in 2011 to provide effective, efficient, and creative legal services to meet the distinctive needs of various organizations, corporations, governments as well as individuals. Our philosophy is to provide advice and representation that allows entities to achieve their goals while minimizing legal risk.