So, your business has grown, and its present structure can no longer sustain your expansion. You need a bigger business model, which necessitates transforming your present Business Name (BN) into a Limited Liability Company (LTD). Can you upgrade your present business name into a limited liability company? The answer is yes. There are only a few things to consider. First, do you want to maintain the present name? Whatever your answer, you must search for a name to confirm that the name is available for use. Also, remember that you may change the nature of business or include a new nature of business when you upgrade to a limited liability company. Second, are you up to date with your annual returns filings? If not, you must sort it out. This is often the biggest barrier to upgrades and where most owners of business names get discouraged, and decide to opt for a new company instead. If you’re not up-to-date on your annual returns filings, it will cost you far more to make an upgra
Introduction NGOs, Not-for-Profits, Associations, Foundations, Clubs, Friendly Societies, Charitable Organisations, Religious Organisations – whatever you chose to call them, are all registered as Incorporated Trustees. As not-for-profits, the general notion is that NGOs are exempt from taxes. However, NGOs do pay taxes to the government when they make profits on certain transactions. In this article, we will discuss the various taxes that NGOs are liable to pay, and when they are liable to pay them. Like business names, NGOs also have basically 5 taxes they should concern themselves with: 1. Capital Gains Tax (CGT) 2. Personal Income Tax (PIT) 3. Withholding Tax (WHT) 4. Stamp Duties (STD) 5. Value Added Tax (VAT) Capital Gains Tax (CGT) NGOs will be liable for CGT if they sell certain of their assets. Chargeable assets under CGT include shares, non-Nigerian currencies and real estate. The rate of CGT is 10% of the profits made from the sale. NGOs that make profits by s