18 May 2018, Sweetcrude, Lagos — When the Senate on Tuesday, passed a fresh Companies and Allied Matters Act, CAMA, many, especially entrepreneurs and business owners breathe a breath of fresh air, especially since the new move came twenty-eight years after the passage of the original CAMA.
The Bill passed on Tuesday, seeks to repeal and re-enact the ease of business registration, and make Nigeria the best country in Africa to do business in, and likewise make it possible to register companies from any part of the world.
Nigeria currently ranks 145 out of 190 countries in the World Bank’s Ease of Doing Business ranking.
Senate President, Bukola Saraki, while speaking during the session, said passing the bill for the amendment was crucial for the economic growth of Nigeria.
“The processes, rules, and regulations set up by the government or government agencies can either help promote a business-friendly environment or hold businesses back from their entrepreneurial ambitions.
“With the passage of CAMA, we are reshaping Nigeria and we changing how Nigerians do business.
“I thank my colleagues for reaching another milestone on our legislative agenda that will positively impact the lives of millions of Nigerians,” he said.
Following its successful outing at the Senate, the bill will now be transferred to the House of Representatives for approval, with the last point of call being the table of President Mohammadu Buhari, for an ascent.
Once the changes are made, investors will further be encouraged, especially small businesses and startups, will witness doing business at lower costs.
The Bill will also ease regulatory burdens.
Due to the changes, many of the over 75,000 private companies limited by shares which are established in Nigeria every year, will be able to incorporate more easily.
This will lead to savings in professional fees and substantial improvements to the ease of doing business in Nigeria by comparison to competitors.
The bill will also encourage more youths to start a new business and will enable an individual to incorporate a company.
Young and innovative start-ups will also have the opportunity to operate as separate legal entities without the risk of losing their personal assets.
In addition, small companies will no longer be required to have a company secretary or hold Annual General Meetings and the requirement for statutory declaration of compliance has also been removed.
Minimum share capital required for companies to be registered has also been reduced to encourage more investments in small companies, and individuals will no longer need a lawyer to register a company.
If the bill is eventually signed into law, will provide significant benefits to companies by reducing red tape and making it easier to comply with regulatory obligations.