The needs for businesses in an economy

A business arises when there are buying and selling of goods and services. People go into starting a business for various reasons. Not all businesses are legal. However, to meet the human needs is one reason why business activities take place daily. In this article, we explain business and how you can register a legal one in Nigeria.

1. What's business?

Business is a commercial activity that people engage in to earn a living. It is referred to as the legal activities people do daily to make profit or put food on their table. Businesses can also be seen as any valid activity that helps solve human problems. 

Commercial activities include manufacturing, trading, and servicing activities. Companies can be involved in the manufacturing of items that are needed by humans for consumption or use. Trading entities stock inventory and sell them. On the other hand, service firms render certain activities for a fee.

Businesses are established with the sole aim of making profit. But, not all businesses are established for profit motive. Some are established to satisfy certain needs. For example, the government runs state-owned businesses to provide essential services. Nonprofit entities are formed to take care of certain social needs such as health, education, and more.

2. Need to businesses 

• The main needs for businesses is to provide goods and services to the populace
• Create wealth for people engaged in it.
• Improve standard of living for both the business owners and customers.
• Provide employment opportunities.
• And, solve certain problems in society.

3. What is required to start a business in Nigeria?

For a business to be legal in Nigeria, it must be registered within the Nigeria law system. The company and allied matters act (CAMA) is the primary law guiding the establishment of companies in Nigeria. The act established the corporate affairs commission (CAC). Therefore, to establish a legal business in Nigeria, it must be registered with the CAC. 

To do this, you need to contact an agent of CAC. Or dive into their website to DIY (Do it yourself). Agents are individuals who do not work with the commission but are approved by them. Do not use anybody as an agent. The individual must have a professional certificate such as ICAN to register as an agent with the corporate affairs commission.

After registering the business, you also need to register with the tax authority on value added tax, withholding tax, pay as you earn, and corporate tax. And ensure that you make filings regularly. Failure to do so may attract fines that are capable of reducing the cash flow of your business or at worst lead to its liquidation.