THREE MISCONCEPTIONS ABOUT BUSINESS REGISTRATION IN NIGERIA.
Tax Liabilities
you pay taxes as soon as you register your business. Some business owners don’t want to register their businesses because of tax obligations. The structure of your business determines your tax liability. You may pay as little or no tax depending on your business structure. Engage a tax professional to know about the tax obligations of the business structure you intend to register.
Business Registration is expensive
Business registration is inexpensive compared to the advantages of registering your business. You get to open a bank account in your business name, have more access to business opportunities, and have legitimacy for operating a registered business. You can also register a business name for a start and later upgrade to a company.
Business Registration is not necessary
Why it may not be necessary to register your business. They are some regulations or opportunities that may require you to have a registered business. You may not be qualified for those opportunities if you are operating an unregistered business. Also, you may incur liabilities for operating an unregistered business. The Companies and Allied Matters Act 2020, the regulatory body in charge of registration and regulations of all registered business entities in Nigeria mandates every individual, firm or company to register their business with the Corporate Affairs Commission within 28 days after the commencement of business. Failure to do so will attract penalties in accordance with section 815 (7) of the Companies and Allied Matters Act 2020 and the Companies Regulations 2021.
By Fathenso Professional Services
The information in this blog post is provided for general information purposes only.