Back to: Store Management SS 3
Welcome to today’s class!!
We are thrilled to have you in our class!!
In today’s Store Management’s class, we will be learning about Documents Used In Home Trade
Documents Used In Home Trade
When we talk about trade, it is very likely we imagine buying and selling. However, as far as trading is concerned, it can either involve two or more countries or within a country. When trading involves two countries like Nigeria and China, we are talking about Foreign trade. Which is why sometimes you go to the market and find items with labels such as ‘made in China.’ But when it comes to Home trade, you discover that what is being sold and bought involves just a country. Home trade dwells on what people buy and sell in their own country.
In Nigeria, the documents used in Home Trade consist of documents such as Certificate of Company Registration and NAFDAC Registration Number.
Let’s take them one after the other.
- Certificate of Company Registration
Unlike school certificates that one receives after graduation, before the commencement or the starting of a business, the business must have what is called Certificate of Company Registration.
Certificate of Company Registration typically refers to the process of obtaining official documentation that confirms the legal existence of a business entity.
This means upon the receival of Certificate of Company Registration, a business is recognised by the law. So it is one thing to have a business or company recognised by your friends and family, it is another to have it recognised by the law.
This certificate of Company Registration is issued by the government agency responsible for registering businesses in a particular jurisdiction, such as the Secretary of State or the Department of Commerce.
In Nigeria, the Corporate Affairs Commission is given the responsibility of registering companies in Nigeria.
The body was set up by the Companies and Allied Matters Act (CAMA).
The Corporate Affairs Commission registration is an unquestionable first requirement for setting up a business in Nigeria.
Below are the current requirements, key facts and steps for getting a company registered in Nigeria.
Key Facts And Requirements for Registering a Company in Nigeria
- Only one person can register a company and act as both director and shareholder where no foreigner will be involved in the composition of the company.
- Where foreigners will be involved, a minimum of two directors will be required. And where the shareholders are individual foreigners, a minimum of two persons are required to act as shareholders for the company.
- A foreign company can register a Nigerian subsidiary and be the sole shareholder provided such company will appoint a minimum of two directors.
- A private company with only local director(s) is not mandatorily required to appoint a secretary at a point of incorporation, however, a company owned by foreigners or involving foreign participation must appoint a secretary at the point of incorporation.
- Every company must have an address in Nigeria at the point of registration (registered office address).
National Agency for Food and Drug Administration and Control (NAFDAC) is the agency responsible for regulating and granting permits for the exportation, importation, manufacture, and the registration of products such as drugs, chemicals, consumable goods, cosmetics, biological, and medical services which are produced in or outside Nigeria.
Any company involved in the production, manufacturing, and distribution of food, imported foods, drugs, the export of semi-processed food and cosmetics must incorporate a company with the Corporate Affairs Commission (CAC) before registering its company product with NAFDAC.
The registration process for the grant of NAFDAC permit comes in two stages, these stages are;
- Application for NAFDAC permit to bring in samples for products manufactured outside Nigeria. For this kind of application, NAFDAC grants special written authorization to importers to bring in samples of the products into Nigeria.
- Application for registration of products locally manufactured or imported.
The registration of locally made products is slightly different from the registration process for imported goods. Where a company produces different products it will be required to register each of them separately to obtain the NAFDAC registration numbers for each of the products.
In summary, Documents used in home trade dwells more on the process of obtaining official documentation that confirms the legal existence of a business entity.
Evaluation
Explain what you understand by Certificate of Company Registration
Reading Assignment
Write the full meaning of these acronyms:
- CAMA
- CAC
Weekend Assignment
List five functions of the Corporate Affairs Commission in Nigeria.
We hope you enjoyed today’s class. In our next class, we will be talking about Licenses And Uses.
Let us know your thoughts and questions in the comment section, and we will attend to them as fast as we can.
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