So, if you are looking at making a social impact while earning on the side, you may want to consider starting the POS agency business. However, before you explore this possibility, it is important to consider this vital question – Can you run a POS agency business in Nigeria without registering your business?

Addressing this legal question will determine the feasibility of your aspiration, and this article will guide you through the essential steps to ensure your POS agency business’ compliance and success in Nigeria.

Why Should You Register Your POS Agency Business?

Ensuring that your POS agency business is legally registered in Nigeria offers several benefits:

1. Legal Compliance: You will comply with a mandatory legal requirement, thereby avoiding the risk of penalties.  Generally, it is illegal for any individual or group to conduct business in Nigeria as a company, limited liability partnership, limited partnership, or under a business name without registering in accordance with the Companies and Allied Matters Act, (‘CAMA’) 2020 (Section 863 CAMA 2020). In line with the above, the Central Bank of Nigeria (CBN) has issued a deadline to existing POS vendors to register their businesses with the Corporate Affairs Commission (CAC) by 7th July 2024. Failure to register can result in default fees, arrest by security agencies and prosecution.
2. Access to Financial Institutions: Registration will provide the necessary access to banks and fintech companies, which are the primary sources for your POS agency business, as they are bound to comply with legal requirements.
3. Eligibility for Institutional Support: Your POS agency business may be eligible for support from government and corporate bodies if registered.

How Do You Register Your POS Agency Business?

Now that you have decided to venture into the entrepreneurial world, the registration of your business is the next line of action. In Nigeria, you can register your business under a business name, company or partnership. Generally, your preference should depend on your business needs.

For a POS agency business, registering under the business name category will typically be sufficient to fulfil the legal requirement. Setting up a business name is relatively easy and less costly compared to other options. However, a business name offers limited protection, as the liabilities of the business are directly borne by the business owner.

The registration is done on the CAC electronic portal, and begins with an application to reserve the name for the business. You have the option to propose 2 (two) names for consideration, and the CAC will either approve one or deny both. A pro tip is to make your chosen name as unique as possible, so it does not closely resemble the name of another business already registered, as this could serve as a basis for denial by the CAC.

If the name reservation is successful, a second application will be made in the prescribed form to register the business under the approved name. Typically, the registration process is completed within a week of the application.

Recently, to ensure compliance with the approaching deadline for existing POS vendors, the CAC has provided alternative options to fast-track the registration process.

What Next?

Whether you are an existing POS vendor or a prospective one, registering your business with the CAC is an essential step towards ensuring the legitimacy and success of your business venture. Registration not only ensures your business’ compliance with laws but also opens numerous opportunities that can help your business grow and thrive.

If you need further guidance or require assistance in registering your POS agency business in Nigeria, we are here to help. Get in touch with our team on +[234] 803 534 8690 or email us at shola@eunoialaw.com.ng; taiwo@eunoialaw.com.ng

This story exemplifies the dual reality every family member operating a family business faces. There is a constant tussle between balancing decisions that positively affect the family business and maintaining a cordial relationship between family members.

When non-family business partners commence operations, the issue of corporate governance is readily brought to the fore so as to formalize the governance process; usually not so when the business is owned by a family. However, due to the proliferation of family owned businesses, the need for such businesses to adopt a tailored and effective family business governance mechanism arises.

Family Business Governance refers to a well structured and balanced process that governs decisions made around the family, the business and the intersection of the two.

Family businesses come in different forms and sizes, from small mom-and-pop stores (such as small or medium sized businesses owned by a husband and wife, siblings, extended family members etc) to global companies (such as  Walmart, Johnson&Johnson, the Henry Ford Motor Company and the Dangote Group), and these businesses account for a significant share of the economy in the jurisdictions where they operate.  Job creation for family members and other employees, source of revenue for suppliers and governments, and general economic stability of the host communities, are some of the ways the family business supports the ecosystem. Hence, the  failure of these enterprises can have cataclysmic implications on economic growth, especially in developing economies

Just like we see generally in businesses, disagreements envenom relationships and could be fatal to the life of a business if no effective resolution is found. It therefore means that families in business can benefit from establishing a sound operating model. Principle 9 of the UK Institute of Directors Corporate Governance Principles for Unlisted Companies states that family run companies should establish family governance mechanisms that promote coordination and mutual understanding among family members as well as organize the relationship between family governance and corporate governance.

Here are some established best practices for families to consider as they evolve and formalize their family business governance practices:

• Clarify the overarching business priority. That is, whether to build a great business, maximise wealth or put the family first by creating and securing opportunities for the current generation and the future ones.
• Anticipate and provide solutions for flash points that can derail the success of the business and jeopardize family harmony. Such issues include leadership choices on who handles what aspect of the business, resolution of disputes, wealth sharing among family members etc.
• The family members should have a working understanding of the ownership structure (current and future). Every member should know who owns or is entitled to what.
• Establish a family council that is saddled with the responsibility of making decisions on policies that pertain to the intersection of the family and the business, including family employment, liquidity, succession, promotion, conflict resolution and communication policies.
• Determine the disciplinary/corrective actions to be applied to family members in the event of misconduct.
• Partnering with trusted professional advisers (such as corporate lawyers) with relevant experience can help avoid common pitfalls and imbue best practices into the development process. They can act as an independent sounding board for strategic business considerations. Another very important function of these trusted advisers is to facilitate the very difficult and sometimes raw conversations about succession planning, remuneration/profit sharing among family members, roles and involvement of various sections of the family in the business, disciplinary measures etc.

Regardless of where the family and the business are in their progression, implementing governance is always a worthwhile exercise.

Patients could not have speedy access to their medical history. The few that had records were records that were made up of files with low quality sheets, prone to tears at the littlest of pressure with ink already fading out, thereby rendering the files unreadable and almost useless.  Kunle felt he could develop an electronic medical record (EMR) software that  doctors in the hospital could use, where the medical history of the patients are immediately imputed into a central system and updated with each new encounter.

He approached the Chief Medical Director (CMD) of Infinity Medical Group and discussed this. Quite impressed by his presentation, the CMD asked Kunle to show him a dummy of how the software will work. Kunle excitedly laid it all bare and they both had a robust discussion on how the hospital can deploy th use of this software.

A few days later, the CMD called his nephew, who was a final year Computer Science student at a private university, and discussed the EMR software. He asked if it was something  his nephew could build. His nephew said he would try his hands on it.

Kunle didn’t get any feedback on when he will be formally engaged by the hospital to build the software.  So he thought to pay the CMD a visit. On getting to the hospital that morning, he was told the CMD was at a meeting so he decided to wait at the reception. Then, an interface on the laptop of one of the nurses caught his attention. He was so sure what he was looking at was an exact replica of the dummy EMR software he had shared with the CMD. Then it struck him- the CMD had taken his dummy, given to some other programmer who developed the EMR for the hospital. He was devastated.

Stories like this and many more abound in the business world. Ideas rule the world they say, but if you do not protect those ideas, you could be said to have slept on your rights. Many business men and women enter into mere handshake deals (verbal agreements) with each other without detailing in fine print, the terms and conditions of the contract. This does not augur well for businesses in the long run.

Sad stories and instances of  corporate thefts is why we business lawyers advise clients to draft and sign Non Disclosure Agreements (NDAs) with intending business partners. An NDA is a contract or contractual provision containing a party’s promise not to disclose any information shared by or discovered from a trade-secret holder, including all information about trade secrets, procedures, or other internal matters.
Proposed business partners, beta-testers and contractors etc. should all be required to sign NDAs.

At Eunoia Law, we deliver bespoke corporate legal services to our clients so their businesses can survive and thrive. Book an appointment to speak with us today.

This is a work of fiction. Names, characters, business, events and incidents are the products of the author’s imagination. Any resemblance to actual persons, living or dead, or actual events is purely coincidental.