How to start a new business in Nigeria: The detailed processes

When an entrepreneur wants to start a business, he must first decide on what he wants to do and how. He will first scan available options and then select the type of business, given his major consideration. He will proceed to decide the form he wants his enterprise to take such as sole proprietorship or a private company limited.

The law prescribes the category of persons who cannot participate in the formation of a company, and they include who are less than 18 years of age(In Nigeria), those who must have sound mind, undischarged bankrupt, a corporate body in liquidation, aliens and foreign companies in prohibited trade among others.

Below I will be discussing in details how to start up a new business in Nigeria

How to get started.
After having developed a business idea and capital, the next is to Register your bus in with the government.

Registration and Documentation: The legal environment in Nigeria requires all enterprise to register with the corporate affairs commission (CAC) . the CAC is charged with the responsibility for the regulation and the supervision of the formation, incorporation, registration and winding up of companies in Nigeria. CAC provides the following services :

1.Registration of business name,
Registration of incorporated trustee,
Issuance of certified true copies of filed documents,
Registration of share capital increase; acceptance of statutory fillings,
instead, and change of name; arrange or conduct investigation into the affairs of any company where the interest of the shareholders and the public so demand; management and winding up of companies.

2.Obtaining Permits and license.
A business enterprise that starts operating without ensuring that all legal and regulatory requirements stipulated for that particular type of business and industry are compiled with will be illegal and sealed up. For example, a BUSINESS NAME not registered CAC ,and permit approval from the relevant agency like NAFDAC for food, drug and water will be likely sealed off from operating.

Persons in certain trade or profession must be licensed with the relevant central government,state or local government on an annual basis for them to be able to operate. For Instance ,the pharmacy acts provides for annual licensi amongst others.

Another factor that must be considered in start up a business is the location.

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3.Location and Site Selection
location is very Important in starting a business in Nigeria. Certain products and services are best in some locations. Every location and environment has a special place where it can thrive.

A good location is an excellent competitive advantage for small business because they are easily accessible, whereas a poor location can ruin a business.

Location decisions, though infrequently made, must be carefully made since they do have significant long term impact or lasting effects on the organization. For small business, location decision is a decision.

However, relocation is possible for proximity to customers, operating costs reduction, expansion, or to achieve other competitive advantages.

Some Factors that affect location decisions includes: Owner’s personal preference, position in supply chain, nearness to market, cost and access to raw materials, ownership to a vehicle to convey to and fro to the market, labour factors, convenience of customers, this and many others are factors that must be considered before choosing a location.

This will have to be very deliberately chosen if not chances are that the business may not thrive well.

The last factors I will be listing here that’s basic factor is the model of Labour.

4.The mode labor.
This include the choice of Labor, here technology and use of manual efforts is consider. A high capital intensive entrepreneur would be considering the use of technology for production, This is to be able to meet up to targets and expectations. While this is obtainable for a high scale capital intensive business, It may not work for small scale business as at best it can resort to the use of manual labor. Here he may be the only source of Labor or he could employ his family to join him in the business.

The outcome of the business is determinat on the efforts put into labour. Capital intensive will yield more results if his or her labour is effective and intensive.

With these above, starting up a business in Nigeria will be much easier.

Feel to ask your question on the comment box.

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