WHAT NEXT AFTER BUSINESS REGISTRATION?
Do you want to take your business to the next level by registering it as a corporate entity? Then you should read our article on Important things to know about registration of business in Nigeria.
Yes! Congratulations, you have successfully completed the first phase of your business. I call this stage turning on the ignition. Your business is on a journey to success. Now that the ignition is on, what are the things you have to do? Overtime, many business owners after registering their business proceed to doing business without putting things in place rightly. Some in fact restructure ownership of the business by adding partners, or allot shares to new shareholders or appoint directors to the business.
Some on the other hand come up with a brand name, trade with the name without protecting and securing their exclusive use of the name. Some also proceed to business without identifying the regulatory agency in charge of the business. In essence, they are thereby unable to adhere to the regulations put in place to govern the activities of the business to keep it compliant with laid down regulations.
If you’re a business that has successfully completed the registration/incorporation phase, the question then becomes, what next? You can gather insights from our article on HANDLING POST INCORPORATION MATTERS IN YOUR BUSINESS.
Did you know that some businesses, even though stated in your registration papers as business to be carried on by your company, require that a license is obtained to give your business activities legal backing. Failure to obtain the necessary license may put your business at a risk of incurring penalties, sanctions and even loss of money spent on operation because you can not put something on nothing and expect it to stand.
Where your business demands that you register products with the National Agency for Food and Drug Administration and Control (NAFDAC), it is expected that you also comply with laid down regulations. It is not good practice to produce, manufacture, import, export or engage in any activities without complying thereby leaving your business products at the mercy of the agency who have the powers to seize and destroy products not compliant with its regulations.
Aside from registering your business with the Corporate Affairs Commission, are there other agencies that you are expected to register with for effective management of your business? Definitely yes, the following registrations are expected to be initiated and concluded immediately after your business registration.
Tax registration with LIRS and FIRS as applicable (All businesses). See our article on TOP REGULATORY COMPLIANCE MOST BUSINESS OWNERS NEGLECT AND WHY YOU SHOULD OBSERVE THEM.
Register your business intellectual property such as your designs, trademarks and Patents with the Trademarks, patents and design registry to enjoy maximum protection of exclusive use of your products, ward off infringers and enjoy royalties accrued to such products. See our articles on How to Protect Founder’s Stake Through Trademark Licensing and 7 Ways I.T. Professionals (and Others at Large) Can Protect their Ideas from Pirates.
SCUML registration with Special Control Unit Against Money Laundering (SCUML) Note that for your SCUML registration, additional documents aside your CAC registration documents are required where other documents such as licenses, authorizations, approvals or certifications apply to your line of business. E.g COREN certificate & REDAN Certificate for Construction and real estate company
NAFDAC Registration for products required for registration such as Food, Drugs & Medical Devices, Herbals & Cosmetics, Vaccines & Biologics, Chemicals, Narcotics, Veterinary. If your line of business requires NAFDAC registration, you can gather insights on what it entails in our article INTEGRATION OF NAFDAC ON THE TRADE PORTAL.
Obtain Money lenders License as required under the laws of the state where your business is to be carried on where your business is into money lending or license for financial institutions from the Central Bank of Nigeria. For insights on money lending business in Nigeria, see our article How to Start a Money Lending Business in Nigeria.
Register with the Securities and Exchange Commission, Nigerian Investment Promotion Commission where your business is regulated by these agencies.
Please note that the above is not an exclusive list of registrations to be done after registering with CAC, your business determines the kind of registration, the first four registrations listed above are however applicable to all businesses.
While you are enthusiastic about starting a business, it is advised that you take proper measures in complying with laid down regulations so you don’t run afoul of them, incur penalties and get sanctioned for non-compliance. Don’t therefore think that once your business is registered with the Corporate Affairs Commission you are finally done with all that needs to be done. It is in fact the beginning of your business journey from ideation to greatness.
To have a grasp of the legal intricacies involved in starting and sustaining your business, we recommend our article on LEGAL MISTAKES TO AVOID AS AN ENTREPRENEUR. We also recommend our article on THE ONE THING YOU MUST DO FOR A BUSINESS BEFORE YOU START ANOTHER.