Do you need help with How to incorporate a Record Label in Nigeria? If you want to get into the music business, then starting your own record company could be a great idea.
Starting a music record label in Nigeria is an avenue to contribute to the recent growth in the Nigerian music industry. It has also been experiencing tremendous growth and acceptance worldwide, thanks to the talent and skills of the industry players.
With this development, music record labels play a vital role in supporting artists and the growth of the industry at large. We’ve had record labels that rocked the Nigerian music scene in the 2000s and 2010s such as Storm Records, Trybe Records, Mohits Records, Kennis Music, Chocolate City Music, Empire Mates Entertainment, and so on.
After the 2010s, more record labels sprung up and dominated the music scene within and outside Nigeria by signing incredible artists. Some of these record labels are; Marvins, DMW, YBNL, Zanku Records, Spaceship Entertainment, Starboy Entertainment, and many more.
Whether you’re a band or artist that wants to control your own destiny, or you want to sign and promote the talents of others, owning a record label gives you options.
What is a Music Record Label?
A music record label is an organization that helps to connect artists to their fans. They support their artists by funding their music and videos and handling their welfare. They promote their artists’ music and lifestyle just so that they become desirable and likable to their audience.
It consists of artists, music producers, vocalists, instrumentalists, songwriters, and a host of creatives. They also have technical roles like human resources, legal team, accounting, publicity, etc. So it is more like a music firm.
Running a music record label in Nigeria could be complicated, and your success will depend on how much you know about the music business. For example, you need to know about contracts, copyrights, publishing, royalties, promotion, marketing, advertisement, accounting, general business operations, etc.
How Does a Music Record Label Operate in Nigeria?
A typical music record label in Nigeria profits from its artist’s music. And this is only possible if they create demand for their artists and music. A music record label, through public relations, creates buzz around the artist so that they stay relevant in the game.
They spend money on artists to make their lifestyle desirable. They create a personality around their artists so that want fans will crave their music and the artists.
The music record label has created a model where loyal music lovers like and trust the artist and purchase their songs.
Fans care more about the artiste than his music. Fans don’t buy music. They buy artists. That’s why different artists don’t get to charge the same amount for their concerts, irrespective of the quality of their music. With this model, music record labels have created an avenue to make money.
How to Incorporate a Record Label in Nigeria: Everything You Need to Know
To start your own independent record label, you’ll have to register the business in Nigeria. Joining the right industry organizations will increase your chances of success. It will involve a substantial time investment. You’ll also have fees to pay, but all of this is necessary to legally operate a business and protect yourself.
Deciding on a Business Entity
You can legally operate a recording business alone as a sole proprietor, but there are other business structures that provide personal liability protection. The business structures that give you this protection require more time and effort to run.
Sole proprietorships are simple and inexpensive to run. You’re responsible for paying income tax on your earnings, but the biggest concern is the personal liability you incur for your business debts.
In a partnership, two or more people come together to run the business. Partners generally agree to split profits and losses based on an agreed-upon percentage. They should refer to their partnership agreement for how the company is run on a day-to-day basis, as well as everyone’s duties and procedures for handling disputes. Partners pay taxes on their share of business profits. You should only enter into a partnership with people you trust.
A limited company or corporation is a legally separate entity from its owners. The owners own shares in the company. Corporations pay taxes on their profits and dividends to their shareholders.
The main advantage of forming most business types is the limited personal liability the owners enjoy. In the event the company is sued for a substantial sum, your personal liability wouldn’t be more than what you invested or any outstanding amounts on any share capital.
The Private Limited Liability Company (LTD) is ideal for most record-label businesses. An LTD is easy and inexpensive to set up and has the least administrative requirements of any formal business entity.
1710Media is equipped with accredited experts and the necessary resources to assist you in completing the Incorporation of a Music Company / Record Label as a Private Company Limited by Shares (LTD) in Nigeria.
- Incorporation of a Private Company Limited by Shares (LTD) in Nigeria.
- Delivery of Certificate Of Company incorporation.
- Drafting and delivery of approved Memorandum of Association and Articles of Association (MEMART).
- Delivery of Status Report.
- FIRS’ Tax Identification Number Inclusive.
- Corporate Bank account opening.
- 3 to 14 Business Days Delivery.