How to Start an Investment Company in Nigeria: A Step-by-Step Guide

Starting an investment company in Nigeria is a smart way to grow money and help others do the same. Nigeria has many people looking for ways to invest and save for the future, so the market has lots of chances for success. 

This guide will show you the important steps to set up your business, follow the law, and make good plans so you can build your company with confidence.

Step 1: Choose the Right Business Structure

Begin by deciding how you want to own and operate the company. A sole proprietorship gives you full control but also places all liabilities on you personally. A partnership allows two or more people to share ownership, responsibilities, and profits according to an agreed partnership deed.

Most founders, however, choose a limited liability company (LLC) because it creates a separate legal entity and shields their personal assets from business debts. For credibility and risk protection, registering as an LLC with the Corporate Affairs Commission (CAC) is often the best path.

Step 2: Reserve Your Company Name and Register with CAC

Once you’ve settled on a structure, pick a clear, professional name. Start by checking the CAC’s online portal to ensure it’s available. Then, apply for name reservation, paying a small fee to hold it for up to 60 days.

Next comes incorporation: submit CAC Form 1.1 along with your Memorandum & Articles of Association, a Statement of Compliance, copies of the directors’ IDs and passport photographs, and your name reservation approval. After review, the CAC will issue your Certificate of Incorporation, your company’s official birth certificate.

Step 3: Define Capital Requirements and Share Structure

Determine the amount of capital you need to launch and plan how ownership will be split among founders or investors. Specify your authorised share capital (the maximum value of shares you can issue) and then decide on issued shares (the number and value of shares actually allocated).

For example, you might authorise ₦1 million in share capital and issue 1 million shares at ₦10 each. A clear share structure prevents future disputes and establishes each party’s stake and profit‑sharing arrangements.

Step 4: Obtain Regulatory Approvals

Investment firms in Nigeria must register with the Securities and Exchange Commission (SEC). If you plan to pool client funds or manage portfolios, you’ll need a Fund or Portfolio Manager license. Companies that underwrite new share or bond issues must secure an Issuing House license.

Should your services include pension‑related products, you’ll also register with the National Pension Commission (PenCom).

The SEC application process requires your incorporation documents, detailed business plan, directors’ biographical data, and proof of minimum paid‑up capital—usually ₦50 million for fund managers.

Step 5: Register for Taxes and Compliance

With your licenses in hand, register for tax compliance. Obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) and register for VAT if your fees are taxable at 7.5%. If you will employ staff, set up Pay As You Earn (PAYE) for monthly payroll deductions.

Good accounting and timely filings are essential; consider hiring a professional accountant or audit firm to manage these obligations and avoid penalties.

Step 6: Set Up Banking and Operations

Open a corporate account at a reputable bank that assigns you a dedicated relationship manager and offers robust online banking tools. These features let you monitor client fund flows in real time.

If you handle cross‑border transfers, choose a bank with strong trade finance and foreign exchange services. Implement an accounting system, such as QuickBooks or Xero, and establish clear internal controls to keep client assets separate from company funds.

Step 7: Hire Qualified Staff and Build Infrastructure

Your firm’s reputation rests on expertise and reliability. Recruit investment advisers, compliance officers, risk managers, and support staff, giving priority to candidates with CFA, ICAN, or CIS qualifications.

Secure a professional office with reliable internet, data backup, and communication systems. A lean, well-trained team can deliver high‑quality service without excessive overhead.

Step 8: Develop Your Brand and Client Onboarding Process

Differentiate yourself with a clear value proposition, be it sector specialisation, technology‑driven analytics, or personalised service. Create a professional website that showcases your licensing credentials, team bios, service offerings, and client success stories.

Establish “Know Your Customer” (KYC) and anti‑money‑laundering (AML) procedures to verify client identities, proof of address, and source of funds. A smooth, transparent onboarding experience builds trust and encourages referrals.