Can One Person Own an LLC in Nigeria? – Everything You Need to Know

Can one person own an LLC in Nigeria? Learn how CAMA 2020 allows one-person companies, the requirements, benefits, and steps to register with CAC.

Introduction

Starting a business in Nigeria comes with many decisions, one of the most important being the type of business structure you choose. Many entrepreneurs ask: “Can one person own a Limited Liability Company (LLC) in Nigeria?” The short answer is Yes.

The Companies and Allied Matters Act (CAMA) 2020 introduced a groundbreaking provision that allows a single individual to register and own a Private Company Limited by Shares (LLC). This is a major shift from the old law, which required at least two shareholders and two directors.

This article explains how one person can own an LLC in Nigeria, the legal backing, requirements, benefits, and potential drawbacks.

Legal Backing for Single-Member LLC in Nigeria

The Companies and Allied Matters Act (CAMA) 2020, under Section 18(2), states:

“One person may form and incorporate a private company by complying with the requirements of this Act in respect of private companies.”

This means:

• You can now register a One-Person Company (OPC) in Nigeria.
• That single person can serve as both the shareholder and the director.
• It enjoys the same protection and recognition as other companies registered with the Corporate Affairs Commission (CAC).

Requirements for Registering a One-Person LLC in Nigeria

If you want to own a company as a single individual, you must meet the CAC requirements. These include:

1. Proposed Company Name – Conduct a CAC name search and get approval.
2. Nature of Business – Clearly state the company’s objectives.
3. Share Capital – Minimum of ₦100,000 for general companies (some sectors require higher share capital, e.g., ₦30 million for travel agencies, ₦10 million for security companies).
4. Articles and Memorandum of Association (MEMART) – To outline the rules guiding your company.
5. Director/Shareholder Information – Since it is a single-member company, you provide your personal details (name, date of birth, occupation, ID, and passport photograph).
6. Registered Office Address – Where the company will operate.
7. Filing Fees – Pay applicable CAC registration fees.

Benefits of Owning a One-Person LLC in Nigeria

1. Limited Liability Protection – Your personal assets are protected if the business incurs debts or liabilities.
2. Full Ownership & Control – You don’t need partners; you have 100% ownership and decision-making power.
3. Ease of Decision-Making – No need for board meetings or multiple shareholder approvals.
4. Access to Opportunities – Eligible for government contracts, business loans, and corporate bank accounts.
5. Business Credibility – Registered companies are more trusted than sole proprietorships.
6. Continuity – The company exists as a separate legal entity, even if the owner passes away.

Drawbacks of a One-Person LLC

1. Limited Capacity – Being the only owner may restrict business expansion and investment.
2. Compliance Burden – You still need to file annual returns and comply with CAC and tax regulations.
3. Higher Costs than Business Name – Registration fees and compliance costs are higher than for a sole proprietorship.
4. Potential Isolation – Without co-owners, decision-making and risk-bearing rest solely on you.

Difference Between One-Person LLC and Business Name

• A Business Name (Enterprise) is cheaper and easier to register but offers no liability protection.
• A One-Person LLC costs more to register but provides limited liability and greater credibility.

Steps to Register a One-Person LLC in Nigeria

1. Conduct a CAC name search and reserve a unique company name.
2. Complete the registration forms online via the CAC portal.
3. Draft and submit the MEMART.
4. Upload necessary documents (ID, passport photograph, proof of address).
5. Pay the required filing fees.
6. Obtain your CAC Certificate of Incorporation and company documents.

Conclusion

Yes, one person can own an LLC in Nigeria—thanks to CAMA 2020. This makes it easier for entrepreneurs to structure their businesses as registered companies without needing partners. A one-person LLC combines the benefits of limited liability, credibility, and full control, though it comes with compliance responsibilities.

If you want to register your One-Person LLC in Nigeria, our team at Business Registration Ventures can handle the entire process for you—saving you time, stress, and mistakes.