If you are a limited liability company, it is 30% of taxable profit, for those in employment it is graduated based on the income. For the 1st ₦30,000 it is 5%. The 2nd ₦30,000 it is 10%, the next ₦50,000 the tax is 15%, the next ₦50,000 the tax is 20%, while above ₦160,000 the applicable tax is 25%.
The procedure for the registration of a Business Name for use by a “sole proprietor” or “partnership/firm” essentially involves the submission of a duly completed Application Form to the CAC signed by the appropriate persons. This form will include some of the following details: Proposed name, nature of the business, address of the principal office and other subsidiary offices, age, sex, occupation, nationality of partners. Also certificates of professional qualification should be tendered.
Marketing is your most important organizing tool. There are four basic aspects of marketing, often called the “four P’s”:
Product: The item or service you sell.
Price: The amount you charge for your product or service.
Promote: The ways you inform your market as to who, what and where you are.
Provide: The channels you use to take the product to the customer.
When you apply for the loan, you must provide projected financial statements and a cohesive, clear business plan which supplies the name of the firm, location, production facilities, legal structure and business goals. A clear description of your experience and management capabilities, as well as the expertise of other key personnel, will also be needed.
An enterprise may take one of the following forms:
A Private company limited by shares
A Public limited company
An Unlimited liability company
A Company limited by Guarantee
A Sole Proprietorship
An Incorporated Trustee
There are four basics of success in small business:
Sound management practices
Few people start a business with all of these bases covered. Honestly assess your own experience and skills; then look for partners or key employees to compensate for your deficiencies.
It may seem silly to ask yourself, “What business am I really in,” but some owner-managers have gone broke because they never answered that question. One watch store owner realized that most of his time was spent repairing watches while most of his money was spent selling them. He finally decided he was in the repair business and discontinued the sales operations. His profits improved dramatically.
Every business needs a Business Plan! It is a Plan that helps the entrepreneur think rigorously through his business idea. This is done through the crystallization of the business concept in an orderly manner in such a way that the resulting document (Business Plan) is the road map that takes your business from start up to functional, then expansion, and ultimately to where ever you want the business to go – IPO, Buy out, etc. Simply put, it’s about setting business goals and achieving results! A good business plan should capture the reason for the business, the identified gap, your value proposition, the market opportunities as well as the challenges. Important numbers / ratios should derive from your understanding of the market and the segment you choose to play in. It is also used in raising funds.
It may seem silly to ask yourself, “What business am I really in,” but some owner-managers have gone broke because they never answered that question. One watch store owner realized that most of his time was spent repairing watches while most of his money was spent selling them. He finally decided he was in the repair business and discontinued the sales operations. His profits improved dramatically