The aviation training Institute company in Nigeria is the lucrative business offering education to those interested in the aviation industry of Nigeria.
However, it requires a good understanding of the legal and regulatory landscape of establishing it.
Legal Structure and Regulatory Requirements
In this comprehensive guide, we will unravel the legal structure and regulatory requirements for starting an Aviation Training Institute in Nigeria.
We will cover the following subtopics:
1. Company Formation and Registration
2. Protection of Trademarks
3. Special Control Unit Against Money Laundering (SCUML) Registration
4. Contracts for Your Aviation Training Institute Company
Services Offered by a Aviation Training Institute Company
Just like regular schools teach subjects like math and science, these institutions teach everything about aviation, from how airplanes work to how to fly them safely. They provide the knowledge and skills needed for careers in the exciting world of aviation.
Company Formation and Registration Requirements
An aviation institute must be registered as a business before it can begin operations in Nigeria. The reason is because it is illegal to carry on business without registering the business in Nigeria.
The Corporate Affairs Commission (CAC) is the agency responsible for registrations of businesses and Non Governmental Organisations in Nigeria. For businesses that will be registered as company, the CAC offers 3 company types: the Limited Liability Company, Unlimited Company, and the Company Limited by Guarantee.
It is compulsory that an aviation training institute be registered as a company. The reason is because according to the CAC, any education related business in Nigeria must be registered as a company.
In addition, since the institute will be profit oriented, it is only wise choice to register the institute as a company because it is the best form for a business that is profit oriented.
Also Read: Understanding The Types Of Companies In Nigeria To Make The Best Choice in Business
In this article, the Limited Liability Company will be our focus. To register the Aviation Training Institute as a company, it must first meet the following requirements.
- Shareholders
– Minimum Number: At least one shareholder is required.
– Who Can Be a Shareholder: Shareholders can be individuals or corporate entities. Nigerian citizens and residents can be shareholders.
Foreigners can also be shareholders, but they must comply with the Nigerian Investment Promotion Commission (NIPC) regulations and might need to obtain a business and residence permit.
2. Directors:
A minimum of one director is required for a private limited company. However, having at least two directors is recommended for better management and compliance.
– Who can be a Director: A person qualified to be a director of the company must:
– Be above 18 years but not older than 70 years.
– Be a person of sound mind (not a mentally unstable person)
– Must not be a person declared by the bank to be a debtor.
– Not be disqualified by a High Court from being a director.
– Directors should possess relevant experience and qualifications to manage the company effectively.
3. Authorized Share Capital
The minimum authorized share capital for an Aviation Training Institute in Nigeria is 2 million.
This ensures the company has sufficient capital to operate within the regulatory framework.
Although a share capital is not the total amount of capital used to start the business. Just like cash at hand, machineries and human resources are some of the types of capital required to start the business, the share capital is also one of the types of capital that the company must have.
This share capital must be completely distributed or allocated to all the shareholders at the point of registration and the shareholders can pay for those shares over time.
4. Company Name
Search and reserve a unique company name with the Corporate Affairs Commission (CAC).
To search and reserve a name means you must first of all apply to CAC asking for permission to use your preferred company name. After following the due process, CAC informs you on whether the name is available or not.
5. Registered Office Address:
Provide a physical address for the company’s operations in Nigeria.
6. Memorandum and Articles of Association (MEMART): Drafted documents outlining the company’s objectives, regulations, and operational guidelines.
7. Provide the particulars of the following:
- The directors
- Shareholders
- Company Secretary: The company secretary is the person responsible for administrative tasks such as keeping and filing documents on behalf of the company. However, this requirement is optional.
8. Filing Fees: Pay the required CAC filing and stamp duty fees and submit proof of payment.
9. Identification Details Needed:
For Directors and Shareholders:
– Full name
– Date of birth
– Gender
– Phone number
– Email address
– Residential address
– Means of identification (International Passport, National ID, Voter’s Card, or Driver’s License)
– Proficiency Certificate as an educator or aviation training professional.
2. Company Secretary (if applicable):
– Name and address
– RC number (if a corporate entity)
– Means of identification
Please note that only one person can register a company and act as both director and shareholder where there are no foreigners involved in the creation of the company.
Where foreigners will be involved, a minimum of two directors will be required. Where the shareholders are individual foreigners, a minimum of two persons are required to be shareholders for the company.
Importance of SCUML Registration
It is important that the Aviation Training Institute Company registers with the Special Control Unit Against Money Laundering (SCUML).
The Economic and Financial Crimes Commission (EFCC) is the agency responsible for the registration of the SCUML.
The reason for getting the SCUML certificate is because it is mandatory for all non designated financial institutions to register for a SCUML certificate.
The most important reason is that registration helps protect your business account from being targeted for money laundering.
Another reason is that it is necessary for opening a corporate bank account for the Aviation Training Institute.
The requirements for SCUML registration include:
– Certificate of Incorporation
– Memorandum and Articles of Association
– Form CAC 1.1 (or CAC 2 and CAC 7 for older registrations)
– Tax Identification Number (TIN)
– BVN, bank name, and account number
INTELLECTUAL PROPERTY PROTECTION
The law protects artistic, literary creations created from your mind. These creations are called intellectual properties and there are three main types which are: patents, copyrights, and trademarks.
However for your business, trademarks are the most important. So what is trademark?
A trademark is a unique sign that shows your company’s products or services are different from others. It could be a name, logo, or symbol.
For instance, some products are known by their trade names such as like Coca-Cola or Apple or Mercedes or Toyota.
As a matter of fact, their names and logos are usually almost immediately recognizable.
A Certificate of Registration is what is usually given after successful registration to prove that the trademark belongs to you.
Patents protect inventions such as your machinery or industrial designs while Copyrights protect literary and artistic works such as videos, music or poetries.
Requirements for Trademark Registration
Registration of your trademark gives you the legal right to take legal action against anyone who wants to steal away your trademark.
The requirements for registering your trademark include:
– Any of the marks which you intend to register (name, logo, image, or symbol) or a combination of these.
– A description of the services of the Aviation Training Institute covered by the trademark
– Name of the owner of the company
– Contact details of the owner of the Aviation Training Institute
– Power of Attorney appointing an agent to do the registration (an accredited agent/lawyer may help to prepare the power of attorney)
– Upon registration, the Aviation Training Institute gets a trademark certificate which is valid for 7 years and can be renewed.
Also Read: What Every Business Owner in Nigeria Should Know About Intellectual Property Rights
CONTRACTS FOR YOUR AVIATION TRAINING INSTITUTE COMPANY
The Aviation Training Institute will be involved in many contracts as a commercial company. The reason it is important for the Aviation Training Institute to have contract documents readily available for its operations.
It is important to note that the contracts must be legally valid.
For a contract to be valid, it must include certain necessary details.
To protect your business and prevent losses, our legal experts ensure these details are included in the contracts.
Some of the documents required include the following:
- Terms and Conditions for Institute Application
To avoid disputes and ensure smooth operations, it is important to have clear terms and conditions in place for application and registrations.
Therefore, this contract should detail the application and registration process, payment terms, cancellation policies, liability limitations, and trainee obligations.
It should also include clauses on fees payment, changes and cancellations, refunds, insurance, and disclaimers about third-party service providers.
A clear drafted terms and condition ensures customers are able to acknowledge and accept these terms before confirming their applications.
- Employee contract of employment
This document tells employees that are newly employed into the Aviation Training Institute, what their individual job description is, the salary, the rules to be followed while working with the company and the rules for leaving or resigning from the institute.
- Company policies and employees handbook
The Aviation Training Institute should also have its rules and regulations that the company itself and every staff must abide with.
The document containing the company policies and the handbook usually includes the institute’s work rules, the code of conduct, safety guidelines, and procedures for conflict resolution.
These rules and regulations provide a structured work environment for the staff thereby contributing to a harmonious workplace, boosting employee morale and their overall productivity.
- Website Terms of Use
Aviation Training Institute services involve taking applications and registrations.
Where the institute accepts these application via a website or application, it is necessary for the institute to have well drafted website terms of use.
They explain what your applicants can and can’t do when they visit the site.
They cover things like their rights, the website’s rights, and how disputes arising from mix ups or errors can be resolved.
- Privacy Policy
In addition to the website terms of use, the institute’s website also requires a privacy policy.
A Privacy Policy is like a set of rules that explain how your applicants and trainee’s information is handled when they use your institute’s website or applications.
The documents usually includes details about how your applicants and trainee’s information are collected, used, the security measures put in place and the procedures for getting access to the information or deleting the information.
You need these agreements to keep your applicants and trainees rest assured that their personal information is safe with you and this brings about trust and integrity for the institute.
- Refund Policy
Based on the commercial activity of an Aviation Training Institute, a refund policy will be of great importance to the business operations.
It is a set of rules that say when and how your applicants can get their money back if they decide to change their minds.
It usually includes details like the conditions for refund, time frame for the refund, their eligibility criteria and any other special requirement for a refund.
It is needed to create a fair win for both you and your customers when the need for a refund arises.
- Independent Contract Agreement
An Independent Contractor Agreement is drafted when the institute hires people such as freelancers or temporary staffs to do a specific job.
You agree on things like what they’ll do, how much they’ll be paid, and when it should be done.
It’s important because it shows that they’re not a full-time employee, so they might have different rights and responsibilities.
- Service Level Agreement
A Service Level Agreement is an agreement between a company and its customers.
It outlines the services rendered, the response time, performance metrics and procedures for dispute resolution.
It’s like a deal to make sure your trainees are happy with the training they’re getting.
- Lease/Tenancy Agreement
Whether the institute’s space is rented or leased, it needs a well drafted tenancy or lease agreement.
Having this agreement ensures legal compliance and secures operational space.
It also clarifies the responsibilities for both the institute and the owner of the property.
Buying your own property? Ensure to follow the due process to avoid getting scammed, you can watch this video here for more.
Also Read: 7 New Strategies For Lagos Landlords To Avoid Hassles in Real Estate Transactions
CONCLUSION
Now this article has shown us that establishing a Aviation Training Institute company in Nigeria demands careful planning and strict adherence to legal requirements.
Therefore, seeking legal help is crucial to getting the legal foundation of your business right.
We offer our services to sophisticated entrepreneurs who are particular about getting it right in the legal foundation of their business right from the get go.
If you need our team to work with you to set up an Aviation Training Institute as a company, you can click HERE to get started.
Company Registration Service – Silver Package
₦300,000.00
Add to Basket
Company Registration Service – Gold Package
₦700,000.00
Add to Basket
This Is How Charis Legal Practice Can Help You!
- Business Legal Consultation
Get started with an initial consultation tailored specifically for business owners like you.
Receive expert legal advice customized to your unique business needs and goals.
- Company Registration Service
Simplify the process of registering your company, whether it’s a limited liability partnership or a limited partnership.
Ensure your business has the proper legal structure and stays compliant with regulatory requirements
- Trademark Registration Service
Receive guidance and assistance for registering your trademark.
Safeguard your brand identity and protect your intellectual property rights with our expert support.
- Contract Drafting for Commercial Transactions
Gain access to expert negotiation and contract drafting services for commercial transactions valued at a minimum of 10 million naira.
Ensure that your business agreements are legally sound and protect your interests.
- Ongoing Corporate Legal Services Retainership
Access comprehensive legal support through a retainer agreement tailored to your business’s needs.
Benefit from ongoing legal advice, contract reviews, and representation whenever required
WHY CHOOSE CHARIS LEGAL PRACTICE?
We are your top Business Law Firm in Lagos Nigeria
As an entrepreneur, it can be overwhelming to manage legal processes and contracts on your own. Our virtual legal consultations make it easy for you to get expert advice and guidance in the comfort of your own space.
We have successfully registered numerous companies and negotiated contracts worth billions of Naira for our clients. Let us handle all of your legal needs with our comprehensive services package specifically designed for business entities.
BOOK YOUR SERVICE