What Businesses Should Know Before Signing a Contract
A short overview of the terms that most often cause problems in commercial contracts, and why they deserve attention before signature.
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Key Considerations When Starting a Business in Nigeria
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Business structure is usually the first legal decision a founder makes, and one of the most consequential. Incorporating a limited liability company is the most common route for businesses intending to raise capital, take on employees, or limit the personal exposure of their founders.
Shareholding structure deserves early attention, particularly where there is more than one founder. Questions such as what happens if a founder leaves, how new investors are brought in, and how decisions are made, are far easier to resolve on paper before a disagreement than after one.
A shareholders' agreement, even a relatively simple one, is worth having between founders from an early stage. It sets expectations before they are tested, which is generally the point at which they are cheapest to agree.
Finally, founders should build basic contracting discipline into the business from the start: written agreements with suppliers, customers and staff, rather than informal understandings that are difficult to rely on later.
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