Requirements To Register New Startup in Nigeria: Get Label

The launch of the startup portal by the Federal Government of Nigeria has raised alot of interest from new startups who wish to get legal certification and recognition. In this guide, I’ll walk you through on the requirements to register a new startup in Nigeria.

The Minister of Information and Digital Economy, Mr Bosun Tijani made this announcement on his Twitter handle just a few months ago.

The bill was passed following the Startup Act. The Nigeria Startup Act 2022 provides incentives, structures and programmes for Nigerian startups to catalyse growth, create value and build a foundation to export tech-enabled services.

Furthermore, the Act also creates the National Council for Digital Innovation and Entrepreneurship whose primary mandate is to align national policies for the development of startups and establish programmes to support tech-enabled startups in Nigeria

Overview of Nigeria Startup Act

Below are key areas the Startup innovation is meant to cover.

1. To Establish the National Council for Digital Innovation and Entrepreneurship (The Council)

2. Set up a consultative forum for Nigerian ecosystem stakeholders to engage and present proposals to the Council

3. Provides for the Startup Investment Seed Fund  which will be managed by the Nigerian Sovereign Investment Authority (NSIA

4. Simplifies registrations and access to government services through the Startup Support and Engagement Portal

Features of Startup Support and Engagement Portal

  • Identifying structured and quality support for high-impact and scalable startups
  • Providing startups with valuable knowledge and information resources for growth and success
  • The Act offers a range of incentives to encourage both local and foreign investors to invest in a Nigerian startup
  • Ensuring access to financial resources and effective fund management for startups
  • Building a robust support structure for the startup ecosystem to grow and thrive
  • Fostering partnerships and connections with relevant government agencies to advance startup initiatives

Read Also: Functions of CAC

How To Register New Startup in Nigeria on NSP

The Startup portal is made available for all new startups in Nigeria. However, for some, it is not essential while for others it is mandatory, especially for those who wish to get a license label.

Below is a category of Startups that needs to be registered.

Startup Registration Requirements For Companies

As a company in Nigeria that wishes to get a legal license and recognition, below are some of the requirements you must meet.

1. You must be a registered company with full compliance under the Companies & Allied Matters Act (CAMA) 2020.

2. The registered company must be in operation for not later than 10 years from the time of incorporation. This means companies older than 10 years can not register

3. The company’s memorandum of association must contain objects that cover innovation, development, production, improvement, and commercialization of a digital technology innovative product or process.

4. Such a company must be a holder or repository of a product or process of digital technology or the owner or author of a registered software

5. On shares, the company must have at least one-third of local shareholding held by one or more Nigerians as the founder or co-founder of the startup.

6. Satisfy the conditions set out in the Act, in the case of a sole proprietorship or partnership.

7. Such a company must be an ICT and digital technology-enabled business that uses existing tools, platforms, libraries, and frameworks to make a company or a solution more efficient or effective

Enrollment Form

The enrollment form requires confidential information regarding your company such as;

  • Company Name, year of Incorporation, Industry and activity
  • Contact Information of subscribers of the company
  • Founder or Co-founder details
  • Means of Identification of Founders

With the information required above to be listed and licensed as a new startup, getting your CAC registration is very important.

Legacy Benjamin Consult

You can not possibly register for this startup if you don’t have your CAC documents ready. On this note, Legacy Benjamin Consult will process your company registration within a space of 7 to 10 days.

Companies lacking an updated annual returns report will also be denied access and approval from the Nigerian Startup Portal

Startup Registration Requirements for Venture Capitalists

Venture capital is money invested in a business, usually a start-up, that is seen as having strong growth potential.

On the other hand, a venture capitalist (VC) is a private equity investor who provides capital to companies (usually startups) with high growth potential in exchange for an equity stake.

For a venture capitalist to be registered with the New Startup Innovation portal, it must meet the following

1. Be a partnership or company that provides capital to a Startup that is exhibiting high growth potential in exchange for equity.

2. Such venture capitalists must have at least one fund with investments in a Nigerian Start-up.

Enrollment Form

The enrollment form requires information such as

  • Company name
  • RC number
  • Means of Identification
  • Business description

Startup Registration Requirements for Angel Investors

Angel investors are usually wealthy business owners who want to use their money to help projects they care about, especially startups that need help

1. Such an investor must be a high-net-worth individual or company which provides funding to an early-stage startup, typically in exchange for equity in the startup company.

2. The investor will have to provide legal documents of investments, membership of an Angel Network, or Investment Syndicate is desirable.

Enrollment Form

The enrollment form requires information such as

  • Company name
  • RC number
  • Investment info
  • Means of Identification
  • Business description

Startup Registration Requirements for Accelerators, Innovation Hubs & Incubators

The following will be required

1. Incubator: Be a company, partnership, non-governmental organisation or limited liability partnership, whose principal object is to support the establishment and development of a tech start-up, promotion of innovation, and related activities through the offer of dedicated physical spaces and services

2. Accelerator: Demonstrate experience in developing and implementing a fixed-term, cohort-based programme which provides start-ups with mentorship and educational assistance to aid their growth

3. Innovation Hub: Provide or demonstrate proof of possession of physical or virtual space where innovators, entrepreneurs, and technology enthusiasts come together to collaborate, exchange ideas, and work on innovative projects

Enrollment Form

The enrollment form requires information such as

  • Company name
  • RC number
  • Incubators form
  • Means of Identification
  • Business description

How To Get a Startup Label in Nigeria

How To Get a Startup Label in Nigeria

Starups looking forward to getting a legal label will be required to register on the Startups Portal and upload the prescribed documents just as earlier explained.
Once your registration and application are approved, your new Startup will now be issued a label and also included in the register of Startups in Nigeria under the National Council for Digital Innovation and Entrepreneurship.

Benefits of Getting a Startup Label in Nigeria

After much is said and done, below are some of the benefits your new Startup will enjoy upon registration and approval with Startups Portal in Nigeria

  • Access to the startup investment seed fund, grants, loans etc.
  • Access to tools and resources
  • Tax and fiscal Incentives for Startups and Investors
  • Capacity building programs and training
  • Participation in regulatory sandboxes
  • Ecosystem engagement and support infrastructure
  • Collaborations and linkages with relevant MDAs as they relate to a startup

Note:

The Ministry of Communications and Digital Economy under the Federal government has the power to withdraw a startup label if it fails to comply with the regulations.

Read Also:

Trade Accreditation in Nigeria

How To Register an NGO in Nigeria

Conclusion:

The Nigerian Starups portal is a platform designed under the Nigeria Startup Act 2022 which provides incentives, structures and programmes for Nigerian startups to catalyse growth, create value and build a foundation to export tech-enabled services

To register a new startup in Nigeria, your company must have to go through a registration procedure and approval before it can be granted a license label.

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