CAC Unveils New Forms of Business Registration

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The Corporate Affairs Commission (CAC) has introduced two new forms of business registration pursuant to CAMA, 2020.

It was gathered that the new development followed the successful of the Online for Limited Liability Partnerships (LLPs) and Limited Partnerships (LPs).

Garba Abubakar, the Registrar General made the announcement in a statement by Rasheed Mahe, CAC Head of Media.

Abubakar described the LLP as a arrangement a legal personality, separate from the partners.

The liabilities of the of an LLP are limited to the amount agreed to be contributed or outstanding in the event of winding up.

An LLP shall have at least two “Designated Partners” who would be responsible for compliance the requirements of the Act by the LLP.

The designated should be individuals, at least one of whom must be resident in Nigeria.

However, the LP is a arrangement at least one general partner and at least one limited partner.

The liabilities of a general partner are unlimited, while the liabilities of a limited partner are limited unless the individual partakes in the management of the partnership.

An LP should not consist of more 20 persons and that the name of an LP should end with the word “Limited Partnership” or the abbreviation “LP”.