5 Benefits of the New CAMA Bill for Small Businesses in Nigeria
The Senate of the Federal Republic of Nigeria has passed the #CAMA bill into law. The bill, in the words of the Senate President, is the biggest business reform bill in the country in over 28 years.
With regards to creating an enabling environment for startups in the country, this is by far the best move by the Government. The repeal and re-enactment of the Companies and Allied Matters Act (CAMA) was read and passed into law by the Senate and has given birth to a new dawn for small business and startups in the country.
#CAMA is a pro-business law. Its passage will show the world that 'Nigeria is ready for business.' By passing this Bill, the 8th Senate has shown that it has the audacity to move Nigerian businesses into a new era of development. pic.twitter.com/4ndZ56VW3a
— Bukola Saraki (@bukolasaraki) May 15, 2018
But what are the direct effects of the CAMA bill on small businesses and startups in Nigeria?
With the birth of this new bill, any individual can start and run a company. This is good news for budding startups and young entrepreneurs because it has totally resolved business registration bottlenecks. A lot of businesses have been forced into unnecessary partnerships because prior to the passage of this bill, to legally own a business in Nigeria, you needed to provide at least two or more people as co-owners of the business.
The new bill now lets you register your business from anywhere in the country via the e-registration portal. It promotes the use of technology in the registration of businesses— this is the best part of the CAMA bill. Now, people can register their small businesses from the comfort of their homes without having to go through all the previous rigorous processes.
Adopting simplicity without being simplistic put class in products, policies and services. Life is all about utilitarianism. Instead of expending hard earned money on a Vertu phone, I will settle for a dependable iPhone. This is why audits are necessary for needed Reforms. #CAMA pic.twitter.com/d0ekz7fee2
— SEGA L’éveilleur®🚨 (@segalink) May 17, 2018
The CAMA bill removes all unnecessary regulatory provisions such as the requirement for ‘annual general meetings’ and ‘company secretaries.’ This would make business ownership and registration easy, as the bill provides an environment for small business to start and grow.
The bill has also reduced the minimum share capital for companies and startup in Nigeria. Evidently, this will encourage more investments and create new jobs.
With the repeal of major parts of the Archaic Companies and Allied Matters Act and in its place a replacement by the Saraki led @NGRSenate , here are ways with which it opens up Nigeria for business. Those who want to start a Business would love it #CAMA pic.twitter.com/nrJHQSBZwV
— Daddy Khalil (@Oddy4real) May 16, 2018
The bill creates the ‘LLP’ (Limited Liability Partnership) which is a new form of legal identity for businesses in Nigeria that is targeted at increasing foreign investments in the country
In summary, the CAMA bill will surely give rise to many small businesses, make the country more attractive to foreign investors, and positively impact the lives of millions of Nigerians.
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