Issues to consider in choice of Business Entity for doing Business in Nigeria
INTRODUCTION
The term “business entity” in this paper loosely refers to the choice of business identity that a businessman or businessmen choose to give to their business; its the kind of legal life that the business owner(s) choose to infuse their business with at inception; or the kind of perception which the business owner(s) wish to portray to the public about their business.
Nigeria is a country that operates a free market economy and the only restrictions and regulations in place by law are those which are generally necessary in the national interest such as restriction of the participation of aliens under Immigration (Amendment) Act 2015[1], Nigerian Investment Promotion Commission(NIPC) Act 1995[2] and Foreign Exchange (Monitoring & Miscellaneous) Act 1995[3].Government intervention and monopoly are generally not encouraged. The 1999 Constitution (as amended)[4]provides that “The State shall, within the context of the ideals and objectives for which provisions are made in this constitution – (d) without prejudice to the right of any person to participate in areas of the economy within the major sector of the economy, protect the right of every citizen to engage in any economic activities outside the major sectors of the economy”.[5]
[1] Cap. I1, Laws of the Federation of Nigeria, 2004.
[2] Cap. N117, Laws of the Federation of Nigeria, 2004.
[3] Cap. F34, Laws of the Federation of Nigeria, 2004.
[4] Cap. C23, Cap. N117, Laws of the Federation of Nigeria, 2004.
[5]Section 16(1)(d) of the Constitution of the Federation of Nigeria (as amended).
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Category: Company Secretarial and Corporate Advisory
Written by: Oluwatobi Oyesanya Esq. (Senior Associate)