The ease of setting up sole proprietorships (One man business)

The ease of setting up sole proprietorships (One man business)

July 23, 2019

Sole proprietorships also widely known as one man business are very easy to set up and manage. It can be incredibly easy to set up hence its popularity amongst many business owners. So, apart from the fact that they are very affordable, the registration process is very straightforward.

Unlike limited liability companies, Sole proprietorships generally don’t need a list of directors or shareholders and you don’t need a Memorandum and Articles of Association (MEMART) but you are able to open and operate a corporate account in the name of the business. All that is required are the details of the proprietor, passport photograph and maximum of three (3) objects.

While setting up a sole proprietorship is easy and affordable, it is crucial to note that setting up your business as a sole proprietorship means that as the owner, you are held personally liable for business related obligations. You re personally liable for the debts of the business and your personal assets can be used to satisfy those debts if the need arises. Personal liability for business obligations stems from the fundamental legal attribute of being a sole proprietor. You and your business are legally one and the same person. In other words, it’s you trading under an alias.

The few set backs notwithstanding, sole proprietorships are very easy to set up and maintain and they are the most suitable for small, one owner managed businesses that require a little structure to operate.

Best regards,

Efe Ugboro

CEO, 618 Bees

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advise, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advise from the particular facts and circumstances at issue from a lawyer.

This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • Do I need a Company Secretary?

    A limited liability company (LLC) must not have a company secretary.

  • What is a testimonium clause in an agreement?

    This is the part of the agreement where the witness attests to have witnessed the execution of the agreement.

  • What are the penalties for not registering my products with the SON?
      1. Seizure of goods by the Inspectorate and Compliance Directorate
      2. Payment of a fine.
      3. Prosecution

     

  • Is it legal to transfer the personal data you obtained legally to another person?

    No, its not legal. This is because the law prohibits anyone from transferring the data of a third party to another person without consent from the third party to do same even if the data was rightfully obtained in the first instance.

  • Can I grant another person the permission to use my design?

    The right of the owner of an industrial design includes the licensing and authorization of another person to use the design.

  • When can I start renewal of the registration of my product(s) with NAFDAC?

    You can start renewal 6 months to the date of expiry.

  • How many directors do I need to start a company?

    A minimum number of one (1) adult director is required to form a company.

  • How long does a trademark registration in Nigeria Last?

    Trademark is valid for seven years from the date of application but you may renew the application for the trademark for an additional period of 14years.

Call Us Now on +234 901 719 0079 Chat on WhatsApp