Senate Pass Bill to Ease Business Registration in Nigeria

Enterprise Television- Senate Pass Bill to Ease Business Registration in Nigeria

On Tuesday the Nigerian Senate passed a Bill to repeal and re-endorse Companies and Allied Matters Act (CAMA) to make it possible for individuals to register their companies from any part of the world.

The Senate President, Bukola Saraki, said the ease of doing business plays a crucial role in the economic growth of any country hence the need for the Senate to amend the act.

The bill comes 28 years after the passage of the original Companies and Allied Matters Act and is expected to make Nigeria the best country in Africa to do business in.

Currently in the World Bank’s record on the comfort of Doing Business ranking, which rates countries for the comfort at which one can open, conduct and close down businesses, Nigeria currently ranks 145 out of 190 countries.

Most of the changes are aimed at encouraging investments that will allow small businesses and startups thrive, lower costs and ease regulatory burdens.

The bill will also spur more young people to start new business and will enable an individual incorporate a company. It will enable new young and innovative start-ups the opportunity to operate as separate legal entities without the risk of losing their personal assets.

In addition, small companies will no longer be required to have a company secretary or hold Annual General Meetings and the requirement for statutory declaration of compliance has also been removed.

The minimum share capital required for companies to be registered has also been reduced to encourage more investments in small companies; and individuals will no longer need a lawyer to register a company.

 

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