When Do You Register Your Company?

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I’ve been wondering, at what point is it necessary to register a company and what kind of structure is best for a techstartup in Naija ? I think it has to be after the idea has been confirmed but then again i dont think it makes sense to register a company whose viability hasn’t been confirmed but then again, getting investors and serious partnerships require some form of legal doc. Some form of catch 22.

Could I be wrong? Your opinions are highly welcome.

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copying @Odunoluwa, our in-house startup lawyer. You can also visit her post collection here http://techcabal.com/author/odun/

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Waohhh. Excellent collection. How did i miss all these posts
If @Odunoluwa is organizing any meetup soon.

I’d be first in line.

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Thanks @remi.

@YoungSage, you actually asked and answered your question brilliantly by yourself. It does make sense to wait till conceptualization and sometimes, maybe validation before registering a company as the registration costs becomes sunk costs if the founders do not proceed with the idea but have registered an entity. However, not registering also works against you if the intention is to raise money.

Whilst the likelihood of raising money at ideation stage is slim, some founders particularly,non-first time founders are able to raise money on an idea and for that reason, may need to set up a legal entity prior to conceptualization and validation. Each scenario is different and it is best to talk specifics out with your lawyer to determine best timing. Also best to discuss most suitable entity with your lawyer

Type of entity will likely be either a business name or limited company. Business Name is less expensive with less reporting obligations and lesser tax whilst Limited Liability Company offers better protection, and is more trusted by investors. Both have their disadvantages.

As @remi recommended, posts here, espectailly the Startup 101 posts would provide more information

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Thank you @waleoyediran. We would keep you posted when we organise one which we hope is soon.

We may likely be at Capital Square this Friday though for a small business clinic. I however cannot confirm yet if the public holiday will affect this

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Thanks a great deal for the clarity and resources. I’d review asap.