Corporate Affairs Commission commences two new forms of business registrations

The Corporate Affairs Commission (CAC) has commenced two new forms of business registrations pursuant to the new Companies and Allied Matters Act, 2020 (CAMA, 2020).

The development followed the successful deployment of the Online Application for Limited Liability Partnerships (LLPs) and Limited Partnerships (LPs).

Speaking shortly after the deployment, the Registrar-General of the Corporate Affairs Commission, Mr Garba Abubakar, described the LLP as a partnership arrangement with legal personality separate from the partners and added that the liabilities of the partners of an LLP were limited to the amount agreed to be contributed or outstanding in the event of winding up.

He said an LLP shall have at least two (2) “Designated Partners” who will be responsible for compliance with the requirements of the Act by the LLP.

The Registrar-General added that the Designated Partners shall be individuals, one of whom at least must be resident in Nigeria.

Mr Abubakar described the LP as a partnership arrangement with at least one general partner and at least one limited partner.

He stressed that the liabilities of a general partner were unlimited while the liabilities of a limited partner were limited (unless he takes part in the management of the partnership).

Mr Abubakar further stated that an LP shall not consist of more than 20 persons and the name of an LP shall end with the word “Limited Partnership” or the abbreviation “LP”.

Director-General, North East Governors Forum (NEGF), Senator Abba Aji, who is the first Nigerian to register an LLP said he was thrilled with the development, which he described as unprecedented.

He applauded the reform initiatives of the Registrar-General and for redeeming his earlier pledge to deploy the LLP and LP interfaces on the Companies Registration Portal by the end of August, 2021.

It would be recalled that the Registrar-General of the Corporate Affairs Commission, Mr Garba Abubakar, had announced that the new forms of business registrations were to be unveiled by the end of August, 2021.