Economy
Entrepreneurs Don’t Need Professionals to Register Their Businesses—CAC
By Adedapo Adesanya
The Corporate Affairs Commission (CAC) has reiterated that the Companies and Allied Matters Act, 2020 (CAMA 2020) will reduce the burden of starting and running small businesses in Nigeria as an individual can incorporate a private company.
According to the News Agency of Nigeria (NAN), this was disclosed by the Registrar-General of the commission, Mr Garba Abubakar in an interview with the agency on Monday in Abuja.
Mr Abubakar said the provisions of the new CAMA would stimulate economic growth, attract investment and promote the Ease of Doing Business campaign of the federal government, especially for Micro Small and Medium Enterprises (MSMEs).
He further said CAMA 2020 provides for individuals to register their businesses with the CAC without going through a lawyer or other stipulated professionals.
He said that under the new act, it was possible for one person to form and incorporate a private company, unlike before when a sole member of a company was impossible.
“For most small entrepreneurs, they do not even have the capital to start the business and some have to borrow the money to even pay the registration fee.
“If you made it mandatory for them to go through professionals before they register, that is actually adding to the cost; it is an unnecessary burden.
“Those that can afford it can pay lawyers and accountants, and those that cannot be able to do their registration by themselves.
“Under the new law, one person can register a company, unlike before when you need a minimum of two persons as directors and shareholders.
“An individual can register a company and he will be the sole shareholder and the sole director, and that company will have all the powers of the company.
“In the past, only a business name was allowed to be registered by an individual but now a company can be registered by an individual,” he said.
The CAC Register-General said that another significant benefit for small businesses under CAMA 2020 was the increase in the threshold for qualification as a small company.
“Under the old CAMA, a small company is one with a yearly turnover not exceeding N2 million and a net asset value not exceeding N1 million; otherwise it is recognised as a large company.’’
He, however, said that CAMA 2020 had substantially increased the threshold to an annual turnover of not more than N120 million, and net asset value of not more than N60 million.
“The implication of the increase is that much more businesses may now take advantage of the regulatory and financial privileges enjoyed by small companies.
“The mandatory requirement for a secretary is now optional, the requirement for filing audited financial statement and appointment of the auditor is also optional for small companies.
“Under the new law, we now have Limited Partnership and Limited Liability Partnership as new legal entities, and this has actually opened windows for entrepreneurs.
“They have a choice to register companies as business name, have Limited Partnership and Limited Liability Partnership, and that actually support the ease of doing business initiative,” he said.
The Registrar-General also said CAMA now recognises the authentication of documents by the electronic signature of a director, secretary, or other authorised officials of the company.
He said that the act also endorsed the electronic transfer of shares and private companies might also hold their general meetings electronically, however, this must be permitted by the articles of the company.
He said that personal notice and a notice of meetings might also be sent by e-mail, and business operations conducted remotely, and electronically endorsed documents would be fully recognised by the Corporate Affairs Commission (CAC).
“These provisions are geared toward easing business processes and eliminating challenges associated with strict application of the old CAMA,” he said.
President Muhammadu Buhari had on August 7 signed into law the CAMA 2020, which repeals and replaces the Companies and Allied Matters Act, 1990.
By Modupe Gbadeyanka
Customers of AXA Mansard in the Micro Small and Medium Scale Enterprise (MSME) sector of the economy will enjoy free exhibition stands at the Made by Nigerians Fair.
The fair is scheduled to take place on Saturday, December 7 and Sunday, December 8, 2024, at the Landmark Event Centre, Lagos.
To support small business owners, AXA Mansard is paying for stands for selected entrepreneurs to showcase their products at the fair, which attracts thousands of people.
According to the Head of Marketing at AXA Mansard Insurance Plc, Mr Olusesan Ogunyooye, this is another gesture by the company to show that MSMEs can benefit from having insurance.
He described MSMEs as the backbone of any economy, noting that they drive innovation, create jobs, and contribute significantly to national development.
“Our support for these businesses at the MBN Fair reflects the commitment to their growth and sustainability. We are passionate about helping them reach their full potential by connecting them with resources and opportunities that foster success.
“By the very nature of insurance, its benefits are in the future and they are uncertain. That has been a main source of discouragement, particularly to MSMEs. Businesses are geared to making money.
“So, when thinking about insurance, an average MSME would rather invest the money in the growth of his business first.
“The risks that businesses face are also real. There are various types of risks businesses have to contend with today; from burglary to fire, the health of employees, and so on.
“When these risks manifest, they can significantly impact a business negatively. We understand that to get MSMEs to protect themselves and the millions of jobs they create, we must help them strike a balance between growing their businesses and protecting them.
“So, we have come up with different Initiatives to help them grow their businesses. The opportunity to exhibit their products and services to thousands of visitors to the MBN Fair is another in the series of our initiatives.
“We are convinced that for insurance to grow, we need to help people and businesses see it as a strategic lever to grow their businesses, not a cost that takes away from them. If we get this right, it can’t have a massive impact on our economy because, when MSMEs thrive, the economy will prosper.
“We have experimented with this model, and we are particularly excited about the responses from our customers. It is a call for us to do more, and we are committed to Nigerian MSMEs,” Mr Ogunyooye stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.05 per cent gain on Friday, December 6 after the price of Afriland Properties Plc went up by 60 Kobo to settle for the day at N16.60 per share versus Thursday’s closing price of N16.00 per share.
Consequently, the market capitalisation of the bourse increased during the session by N520 billion to settle at N1.056 trillion, the same value it ended a day earlier, as the NASD Unlisted Security Index (NSI) went up by 1.5 points to wrap the session at 3,014.91 points compared with 3,013.41 points recorded in the previous session.
Business Post reports that yesterday, the price of Acorn Petroleum Plc depreciated at the close of business by 15 Kobo to trade at N1.54 per unit compared with the preceding day’s N1.69 per unit.
The volume of securities traded in the session by investors soared by 168.3 per cent on Friday to 199,577 units from 74,381 units, but the value of securities went down by 45.8 per cent to N1.4 million from the N2.7 million recorded a day earlier, and the number of deals grew by 20 per cent to six deals from the five deals executed in the preceding session.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rebounded by 0.10 per cent on Friday as almost all the key sectors closed in green when trading activities ended for the week.
The banking index appreciated by 0.73 per cent, the insurance sector gained 0.55 per cent, the energy counter improved by 0.17 per cent, and the industrial goods space jumped by 0.04 per cent, while the consumer goods sector depreciated by 0.16 per cent.
At the close of business, the All-Share Index (ASI) moved up by 96.64 points to 98,210.75 points from 98,114.11 points and the market capitalisation gained N58 billion to quote at N59.534 trillion compared with Thursday’s closing value of N59.476 trillion.
The bourse finished with 27 price advancers and 21 price decliners, representing a positive market breadth index and bullish sentiment.
Golden Guinea Breweries jumped by 9.98 per cent to N5.40, Japaul improved by 9.30 per cent to N2.35, Sunu Assurances expanded by 9.07 per cent to N5.05, Sovereign Trust Insurance rose by 7.69 per cent to 84 Kobo, and Secure Electronic Technology grew by 7.69 per cent to 70 Kobo.
On the flip side, Eterna lost 4.62 per cent to N22.70, Sterling Holdings depreciated by 4.12 per cent to N4.65, Prestige Assurance fell by 3.85 per cent to 75 Kobo, Consolidated Hallmark shrank by 3.85 per cent to N2.50, and Champion Breweries slumped by 3.50 per cent to N3.86.
Yesterday, investors bought and sold 1.0 billion equities worth N17.5 billion in 7,220 deals, in contrast to the 723.0 million equities valued at N12.8 billion transacted in 8,495 deals a day earlier, indicating a decline in the number of deals by 15.01 per cent and a surge in the trading volume and value by 43.98 per cent and 36.72 per cent, respectively.
On top of the activity chart on Friday was Wema Bank with the sale of 472.5 million stocks valued at N4.1 billion, Fidelity Bank traded 251.5 million shares worth N4.0 billion, FCMB transacted 45.0 million equities for N404.9 million, UBA sold 42.3 million shares valued at N1.4 billion, and Japaul traded 20.7 million stocks worth N46.3 million.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN