'Startup Company'- Right or Wrong label.

Have you notice that many companies have wrongly labelled themselves as startups? Are you certain that you have correctly labelled your business as a startup?

For your company to qualify for the "Startup" label in Nigeria, it must meet the criteria outlined in the Startup Act 2022. To simplify this, we have outlined the requirements for your company to be designated as a startup under the Startup Act.

1) Your company must be registered as a limited liability company under the Companies and Allied Matters Act 2020 and should have been in existence for no more than 10 years from the date of incorporation.

2) your company's objectives must include innovation, development, production, improvement, and commercialization of a digital technology innovative product or process.

3) Your company should either possess or be a source of a digital technology product or process or be the owner or author of registered software.

4) Your company should have at least one Nigerian as a founder or co-founder of the startup. The Nigerian founder or co-founder should have a share in the company's profits.

If your company doesn't meet the above criteria, it would be best for you to seek the guidance of legal counsel skilled in Startup Law and corporate law to explore potential restructuring options.

We trust this information is valuable to you.

Have a productive day!

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