What benefits for startups and MSMEs?

The new Companies and Allied Matters Act, 2020 (“CAMA 2020” or “Act”) sustains the gains made by the Federal Competition and Consumer Protection Act, 2018 and the Finance Act, 2020 towards improving ease of doing business in Nigeria. Some of the amendments and fresh provisions are geared towards further liberalisation of Nigeria’s business environment.

Just like the Finance Act, 2020, efforts have been made to reduce the regulatory burden on small businesses by eliminating administrative bottlenecks. The CAMA 2020, incorporates innovative business rescue and recovery provisions to support and protect insolvent companies. No doubt the Act has altered the corporate, economic, and business landscape in Nigeria. This article focuses on implications of the Act for startups and small businesses generally.

Single Member Companies

Under the CAMA 2020, it is now possible for one person to form and incorporate a private company. Before now, sole membership of a company was impossible, leaving founders to look for family members or associates to subscribe to at…

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