An Overview Requirements To Register New Startup in Nigeria: Get Label

Are you an aspiring entrepreneur with a great idea that can solve a problem, create value, or make a difference in Nigeria? If yes, then you are part of the growing community of startups in Nigeria, which are driving innovation, creating jobs, and boosting the economy and society.

Requirements To Register New Startup in Nigeria: Get Label

However, starting and running a startup in Nigeria is not easy. You may face many challenges and obstacles, such as lack of funding, complex regulations, poor infrastructure, and shortage of skilled talent. You may also miss out on many opportunities and resources that could help you grow and scale your startup.

That is why the Nigerian government enacted the Nigeria Startup Act, 2022, which is a landmark legislation that provides the legal and institutional framework for the development and operation of startups in Nigeria. The Act aims to create a conducive environment for startups to thrive, by providing them with various benefits and incentives, such as access to funding, tax breaks, regulatory exemptions, and support services.

But how can you access these benefits and incentives? The answer is simple: you need to get the Startup Label. The Startup Label is a certification issued by the National Council for Digital Innovation and Entrepreneurship (NCDIE) to eligible startups that meet the criteria specified in the Act. The Startup Label is your ticket to enjoying the privileges and opportunities under the Act.

In this blog post, we will guide you on how to get the Startup Label, which is a prerequisite for registering and managing your startup in Nigeria. We will explain what the Startup Label is, why you need it, and how to get it in a step-by-step manner. By the end of this blog post, you will have a clear understanding of the requirements and process to get the Startup Label and start your journey to becoming a successful entrepreneur in Nigeria.

What is the Startup Label and why do you need it?

The Startup Label is a certification issued by the NCDIE to eligible startups that meet the criteria specified in the Act. The criteria include:

  • The startup must be a company incorporated in Nigeria under the Companies and Allied Matters Act, 2020.
  • The startup must have its main activity in the digital sector or use digital technology to provide goods or services.
  • The startup must have been in operation for not more than seven years from the date of incorporation.
  • The startup must have an annual turnover of not more than N100 million.
  • The startup must have at least one founder who is a Nigerian citizen or a permanent resident in Nigeria.
  • The startup must have at least 50% of its employees who are Nigerian citizens or permanent residents in Nigeria.

If your startup meets these criteria, you can apply for the Startup Label on the Nigeria Startup Portal, which is the official website for registering and managing startups in Nigeria. The Startup Label is valid for three years and renewable for another three years, subject to meeting the criteria and paying the prescribed fee.

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But why do you need the Startup Label? What are the benefits of getting it? The Startup Label is not just a piece of paper or a logo. It is a recognition and endorsement of your startup as a potential contributor to the digital transformation of Nigeria. It is also a gateway to accessing various benefits and incentives under the Act, such as:

  • Access to the startup investment seed fund, which is a fund established by the NCDIE to provide equity and debt financing to startups at various stages of development.
  • Access to grants, loans, guarantees, and other forms of financial support from the NCDIE, the Bank of Industry, the Central Bank of Nigeria, and other relevant agencies and institutions.
  • Access to tools and resources, such as cloud computing, software, hardware, data, and other digital assets and infrastructure, provided by the NCDIE and its partners.
  • Tax and fiscal incentives for startups and investors, such as exemption from income tax, value added tax, withholding tax, and capital gains tax for a period of three years, subject to meeting certain conditions and thresholds.
  • Capacity building programs and trainings, such as mentorship, coaching, incubation, acceleration, and networking, provided by the NCDIE and its partners.
  • Participation in regulatory sandboxes, which are testing environments where startups can experiment with new products, services, or business models, without being subject to the full scope of existing regulations, subject to the approval and supervision of the relevant regulators.
  • Ecosystem engagement and support infrastructure, such as access to co-working spaces, innovation hubs, labs, and other facilities, provided by the NCDIE and its partners.
  • Collaborations and linkages with relevant MDAs as it relates to a startup, such as access to information, data, markets, opportunities, and challenges, provided by the NCDIE and its partners.

As you can see, getting the Startup Label is not only a requirement, but also a benefit for your startup. It will help you overcome some of the challenges and obstacles that you may face as an entrepreneur in Nigeria, and also help you leverage some of the opportunities and resources that are available for you to grow and scale your startup.

Therefore, it is important that you get the Startup Label as soon as possible, as it is valid for only three years and renewable for another three years. You don’t want to miss out on the benefits and incentives that are available for you under the Act, which could make a huge difference for your startup.

How to get the Startup Label: step-by-step guide

Now that you know what the Startup Label is and why you need it, let’s see how you can get it in a step-by-step manner. The process of getting the Startup Label is simple and straightforward, and it can be done online on the Nigeria Startup Portal, which is the official website for registering and managing startups in Nigeria.

The Nigeria Startup Portal is a one-stop shop for all your startup needs. It is a platform where you can register your startup, apply for the Startup Label, access the benefits and incentives under the Act, and manage your startup activities and obligations. The Nigeria Startup Portal is also a source of information and guidance on how to start and run a successful startup in Nigeria.

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To get the Startup Label, you need to follow these steps on the Nigeria Startup Portal:

  • Step 1: Determine the name you want to register for your startup and conduct a search to ensure the proposed name is available. You can use the name availability checker tool on the portal to check if the name you want is already taken by another startup or company. You can also use the name generator tool on the portal to get some suggestions for a unique and catchy name for your startup.
  • Step 2: Reserve the proposed name on the portal and pay the prescribed fee. You can reserve the name for a period of 60 days, during which you can complete the registration and labelling process. The fee for reserving the name is N500, which can be paid online using your debit or credit card, or offline at any bank branch or designated payment point.
  • Step 3: Upon approval of the name, upload the required details and documents on the portal, such as:
    • Signed and stamped copies of the memorandum and articles of association, which are the constitutional documents that define the objectives, powers, and rules of your startup. You can use the templates provided on the portal or create your own customized documents.
    • Application for registration of a company (Form CAC 1.1), which is the form that contains the basic information about your startup, such as the name, address, share capital, directors, shareholders, etc. You can fill and submit the form online on the portal.
    • Evidence of payment of stamp duty, which is the tax levied on the memorandum and articles of association. The stamp duty rate is 0.75% of the share capital of your startup, subject to a minimum of N500 and a maximum of N7,500. You can pay the stamp duty online on the portal or offline at any bank branch or designated payment point.
    • Identification documents of the directors and shareholders, such as passport photographs, national identity cards, driver’s licenses, or international passports. You can scan and upload the documents online on the portal.
    • Declaration of compliance (Form CAC 4), which is the form that declares that your startup has complied with all the requirements for incorporation under the Companies and Allied Matters Act, 2020. The form must be signed by a lawyer who is engaged by your startup. You can scan and upload the form online on the portal.
    • Notice of situation of registered office (Form CAC 3), which is the form that states the address of your startup’s registered office, which is the official place where your startup’s records and documents are kept. The form must be signed by a director or secretary of your startup. You can scan and upload the form online on the portal.
  • Step 4: Make the prescribed payment for the incorporation fee and the Startup Label fee. The incorporation fee is the fee charged by the Corporate Affairs Commission (CAC) for registering your startup as a company. The incorporation fee varies depending on the share capital of your startup, as shown in the table below:
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Share Capital (N)Incorporation Fee (N)
1 – 1,000,00010,000
1,000,001 – 5,000,00025,000
5,000,001 – 10,000,00050,000
10,000,001 – 500,000,000100,000
Above 500,000,000250,000
  • Step 4: Make the prescribed payment for the incorporation fee and the Startup Label fee. The incorporation fee is the fee charged by the Corporate Affairs Commission (CAC) for registering your startup as a company. The incorporation fee varies depending on the share capital of your startup, as shown in the table below:
Share Capital (N)Incorporation Fee (N)
1 – 1,000,00010,000
1,000,001 – 5,000,00025,000
5,000,001 – 10,000,00050,000
10,000,001 – 500,000,000100,000
Above 500,000,000250,000

The Startup Label fee is the fee charged by the NCDIE for issuing the Startup Label to your startup. The Startup Label fee is N10,000, which is a one-time payment for the initial three-year validity period. You can pay both the incorporation fee and the Startup Label fee online on the portal or offline at any bank branch or designated payment point.

  • Step 5: Where the Portal Coordinator is satisfied that an applicant has complied with the requirements for labelling, the startup Coordinator shall enter the name and particulars of the applicant in the register of startups and issue a label to the startup. The label will be in the form of a digital certificate, which will contain the name, logo, and unique identification number of your startup. The label will also have a QR code, which can be scanned to verify the authenticity and validity of your startup. You can download and print the label from the portal, and display it on your website, social media, and other platforms.

Conclusion

Congratulations! You have successfully completed the process of getting the Startup Label for your startup. You are now officially recognized and endorsed as a startup in Nigeria, and you can enjoy the benefits and incentives under the Nigeria Startup Act, 2022.

Getting the Startup Label is not the end, but the beginning of your journey to becoming a successful entrepreneur in Nigeria. You need to keep working hard, learning new skills, and improving your product or service. You also need to keep track of your startup activities and obligations, such as filing annual returns, paying taxes, and renewing your label. You can use the Nigeria Startup Portal to manage all these aspects of your startup, and also access more information and guidance on how to grow and scale your startup in Nigeria.

We hope this blog post has been helpful and informative for you. If you have any feedback, questions, or experiences to share, please feel free to leave a comment below or contact us via social media. We would love to hear from you and support you in your entrepreneurial journey.

Start your journey to becoming a successful entrepreneur today by getting the Startup Label. Join the vibrant and innovative community of Nigerian startups and contribute to the digital transformation of the country. Follow us on Facebook, Twitter, and Instagram for more updates and tips on how to grow your startup in Nigeria.

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