We look at the Requirements for Music Company Registration as a Private Limited Company by shares in Nigeria.
By a virtue of section 18 of the Companies and Allied Matters Act 2020 (“CAMA”), one or more shareholders can form a small company limited by shares. A company is small if, amongst others, the turnover is less than N25,000,000 and it has no foreigner or government corporation as a shareholder.
The CAMA 2020 requires a company to have at least two (2) directors though small companies may have one (1) director pursuant to section 271 of CAMA 2020.
Shareholders could be individuals or companies, but only individuals can become directors of a company. A director need not be a shareholder of the company and shareholders need not necessarily be directors as well.
- Shareholders / Members are the persons holding shares in a company.
- Directors of the company are responsible for the management of the company affairs and legal compliance under various laws. Directors are normally appointed by shareholders. Nigerian company laws specify that only an individual can be appointed as a director of a company.
This guide is designed to help you understand the minimum requirements you must fulfill in order to form a Nigerian limited company (limited by shares).
What are the Requirements for Music Company Registration in Nigeria?
Every business type has its own set of requirements before it is incorporated. The very minimum requirements of a Music Company as a private limited company in Nigeria are:
- There must be at least one director appointed.
- All directors must be at least 16 years old.
- There must be at least one natural person appointed as a director (Not solely other companies acting as corporate directors)
- The company must have a registered office address in Nigeria.
- The chosen company name must not be exactly identical, or too similar, to any other company name currently held on the register at Companies House.
- The company must issue a minimum of one share at the time of incorporation.
Other points worth noting:
- Company Secretary is an optional position for private limited companies. You can appoint one if you feel it will assist in administering your company.
- The director, secretary, and shareholders do not have to be based in Nigeria. Virtually anyone can own and manage a Nigerian private limited company but there must always be one real person who is at least 16 years of age appointed.
- Corporate bodies can act as directors, secretaries, and shareholders but there must still be another director who is a natural person. Using corporate entities as directors and shareholders can make opening a bank account more difficult in some circumstances.
- A company can be set up with one natural person as the director who also holds the shares and can use their home address as the business and registered address. You just need to keep in mind that CAC makes your home address publicly available on their website if you use it as the registered address and director's service address. This can be avoided by purchasing an address service from us on an annual basis.
Required particulars for Registering a Music Company in Nigeria
The following are particulars required for incorporation of a Music company limited by shares in Nigeria:
- Name of the Company:
Two preferred names for the proposed company are to be presented to CAC for Name Availability Search and Reservation. A name approved by the CAC is reserved for 60 days to enable presenters enough time to complete registration (even though the registration can now be completed on the same day of application).
- Amount of Share Capital:
A private company limited by shares (LTD.) is required to have a minimum issued share capital of 100,000 whilst a publicly quoted company (PLC) must have 2,000,000 minimum issued share capital (all shares must be issued). However, where a foreigner is a shareholder, then the company must be registered with not less than 10,000,000 issued share capital.
- Registered Address:
Every company registered with CAC is required to have its registered address in Nigeria. A proposed company can use a virtual office in Nigeria as its registered address.
- Company’s Email and Telephone Number:
The CAC requires an email to be designated for the proposed company for future correspondence. A Gmail or Yahoomail will suffice.
- Particulars of shareholders, directors, and company secretary:
The names, addresses, occupations, dates of birth, distribution of shares amongst the shareholders, a government-issued means of identity, as well as electronic signature of shareholders, directors, and company secretary are required for incorporating a company.
– Please note that by section 18 of the CAMA 2020, one (1) individual can be a sole shareholder and sole director of a small company.
– Please note also that directors and shareholders can hide their personal information from the public members who may later conduct searches into the company using the CAC online portal. This privilege costs extra per person.
– Please note also that where a foreigner with a Nigerian address is a director, proof of his or her Combined Expatriate Residence Permit and Aliens Card (CERPAC) must be uploaded into the CAC portal. CERPAC can be obtained from the Nigerian Immigration Service (NIS).
What is the Timeline for Completing the Incorporation of a Music Company in Nigeria?
The registration of a Music company can now be completed on the same day of application (24 hours). On the same day, the company gets its electronic certificate of incorporation, the business number (known as RC number), and the tax identification number.
We will obtain the Certified True Copies of your company incorporation documents from the Corporate Affairs Commission after registration. These documents will be required by Nigerian Banks when you want to open a corporate bank account for the company.
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.