Learn How to set up a Music Business in Nigeria. If you’re looking for a great business idea, do consider the arts or music business in Nigeria. You may be an artist or artiste looking at branding your talent. You may want to boost revenue by capitalizing on established art and music brands. You may even love arts and music so much that you want to teach and spread the good vibes.
Whatever your reason for doing so, arts and music is a stable industry in Nigeria and a brilliant business idea. It will allow you to generate continuous revenue as well as build a legacy. Copyright and ownership will always remain or be licensed with the business and this, in turn, creates sustainable income streams.
The Private Limited Liability Company (LTD) is ideal for most Music businesses. An LTD is easy and inexpensive to set up and has the least administrative requirements of any formal business entity.
How to start a Private Limited Company for Music Business
If you own and operate a record label or other Music Business, you’ve probably at least considered forming a Private Limited Liability Company (LTD) for your business. The LTD is a popular option for all sorts of businesses looking for asset protection, and it has a handful of other major advantages as well.
Of course, forming an LTD isn’t the only option for your record label, so our mission is to help you decide if it’s the best choice for you. There are many different factors to consider when you’re forming a business entity for your recording company, so let’s dive into the details of the Private Limited Company to figure out if you should form one.
What Is an LTD?
LTD are formal legal entities; the owners or members are not usually personally accountable for the financial status of the business. This means that if someone sues your Private Company Limited by shares (LTD), your personal assets are not at risk.
The essential characteristics of a limited company are as follows:
- The owners of a private company have limited liability. The company's liability cannot be assumed as theirs.
- An Ltd. company has a limited number of shareholders.
- The owners are not allowed to sell shares/stocks publicly.
- The number of owners is limited to fifty shareholders.
Why Starting a Private Limited Company (LTD) for a Record Label Is Important
Incorporating your Music Company or Record Label will provide you with many benefits, including:
- Personal Asset Protection
The top reason to form an LTD for a record label is to gain access to the personal asset protection provided by this business structure. Whether you operate your business as a small independent label or a large recording company with an array of clients, you need the limited liability protections that an LTD can provide.
As an example, let’s say that you record a musician performing a cover song. You later find out that neither you nor the artist has the rights to record the song, and the original writer sues you. If you operate your record label as a sole proprietorship or general partnership, your personal assets — like your house, car, personal bank accounts, etc. — would be at risk if that individual decides to sue your business.
On the other hand, if you form an LTD for your record label, and you operate and maintain that LTD in a compliant fashion, the scope of that musician’s lawsuit will be limited to your business assets. In other words, your personal assets will be protected by the business structure you’ve chosen.
- Enhanced Credibility and Name Uniqueness
A Private Limited Company (LTD) structure can enhance the credibility of your record label business venture. With an LTD, you not only have the rights to exclusive use of a business name, but you will also have either the phrase “Limited liability company”, or "Limited" or the letters “LTD” in that business name.
This provides your business with a jolt of respectability because customers respect the professionalism displayed by an LTD. Also, they typically feel more comfortable writing checks to a business entity rather than to an individual.
How to set up a Music Business in Nigeria
If you love music and can handle challenges, record label entrepreneurship could be right for you. If you can find great artists, manage them well, stay on top of marketing, and put together a solid business plan, you will have every chance for success.
1710Media helps creatives take the first step in entrepreneurship. Let us assist you with the formation of your business.
Private Limited Companies are used to conduct regular commercial businesses with the purpose of the owners making a profit, whilst providing limited liability protection. Artists & Labels risk personal liability when they operate unprotected.
To incorporate a company limited by shares in Nigeria, a minimum number of 1 Member (owner) and a maximum of 50 members are required. The minimum share capital to incorporate a company is; 100,000 Naira and the name shall end with the word, “Limited” or "Ltd".
Market research, a location survey, a business plan with financial projections, and sourcing for resources all need to be done beforehand. You will also need to consider financial statements and accounting – it will help to know about the laws and policies in order for taxation purposes. The Federal Inland Revenue Services (FIRS) website has some useful guidelines to follow.
It is always advisable to engage companies like 1710Media to help you make inquiries or start the whole process. This allows you to concentrate on fine-tuning your business while the professionals do the running around.
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.
- Delivery of Certified True Copy of Application Form.
- FIRS' Tax Identification Number Inclusive.
- Corporate Bank account opening.
- 3 to 14 Business Days Delivery.