Skip to content FORMS OF BUSINESS ORGANIZATION IN NIGERIA A business entity is responsible for using its economic resources to provide goods or
services to customers for profit. There are different types of companies and business structures in Nigeria. First, it is a note of worth to state that under Nigerian law, it is only the Corporate Affairs Commission, an agency of the Federal Government that engages in company registration. Business organizations in Nigeria come in different forms of ownership and these include:
A sole proprietorship is usually registered as a business name with the Corporate Affairs Commission. And Nigerian residents can only register it.
A partnership is also registered as a business name with the Corporate Affairs Commission.
Types of Companies in Nigeria
A limited company by shares separates the business assets of the company from the personal assets of its owners. It states in its memorandum to be a private or public company
When registering a Company limited by Guarantee, it shall not be registered with a share capital.
Finally, it is important that out of various types of companies in Nigeria, a private limited liability company is still the most recognized and preferred form of business organization in Nigeria. Additionally, a private limited liability company is the most suitable form of business organization for foreigners seeking to do business in Nigeria. By Corporate & Commercial Law Team Resolution Law Firm Emai: Related PostsWhat is it called when a business is owned by two or more persons?Partnership
Similar to sole proprietorships, a partnership is the simplest type of business ownership when two or more people are involved. There are two kinds: limited partnerships and limited liability partnerships.
Which type of business is owned by two or more persons who contribute resources and responsibilities in running the business?Partnership. A partnership (or general partnership) is a business owned jointly by two or more people.
What is defined as a business that is owned by two or more persons who have unlimited liability for its debts and obligations?A general partnership is an unincorporated business with two or more owners who share business responsibilities. Each general partner has unlimited personal liability for the debts and obligations of the business. Each partner reports their share of business profits and losses on their personal tax return.
What refers to a form of business organization that is owned by one person?Sole Proprietorship
This is a business run by one individual for his or her own benefit. It is the simplest form of business organization.
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