As a business owner or a prospective one, there’s the need to know regulatory bodies governing your business sector. Asides from the initial registration and compliance tests, you’d be running into these bodies frequently.
Because of that, it’s always better to familiarize yourself with some of these agencies. Also, when you know these agencies, you reduce your susceptibility to falling for scam agencies who’d try to bully or extort you.
Hence, in this post, I’ll be highlighting the roles regulatory bodies play in your business and some of the regulatory bodies governing businesses in Nigeria.
What are Regulatory Bodies?
A regulatory body is any federal governing agency responsible for carrying out supervisory functions over a particular sector. In businesses, these bodies protect consumer rights while ensuring that a business complies with the standards and procedures given.
Regulatory bodies ensure that the economic system doesn’t collapse. Just like most sectors require the need for law and order, regulatory bodies enforce law and order for businesses in the country.
What are the Roles or Functions of Regulatory Bodies?
In addition to ensuring that businesses comply with the standard of service required, regulatory bodies also carry out a number of other functions. Here are some of the roles of regulatory bodies in Nigeria;
- They set guidelines, procedures and standards for businesses to adhere to.
- These agencies collect any required tax or levies.
- Regulatory bodies monitor how well businesses adhere to these set guidelines.
- They receive any complaints laid by consumers against businesses.
- Enforcement of sanctions against businesses who didn’t comply with the standards given.
Regulatory Bodies Governing Businesses in Nigeria
Now that you’ve seen why regulatory bodies are important in sustaining the longevity of your business in the nation, it’s essential to know who they are. Here are some of the important regulatory bodies you’ll run into as a business owner in Nigeria;
CAMA which is short for Companies and Allied Matters Act is a law enforced by the Corporate Affairs Commission (CAC). This regulatory body is responsible for the smooth establishment and running of business or companies in Nigeria. You’ve probably visited CAC while registering your business name. CAMA created this commission to aid the clear registration of companies and businesses in Nigeria.
Asides from the creation of business, they follow up with the management and rule of operation for these businesses. So if you ever want to start out a business, get incorporated trustees, or even close one down, you’d be meeting a lot with CAMA. Foreign companies inclusive.
2. The Trademarks, Patent and Design Registry, Commercial Law Department, Federal Ministry of Industry, Trade and Investment
This regulatory body is an organization protecting the trademark and intellectual property of businesses and companies. A business trademark is any word, symbol, logo or design that separates your business from other enterprises. Usually, the only way you’re entitled to this trademark is by registering it with this regulatory body.
So if you have issues with another business infringing on your trademark or if you’re the one infringing, you’ll be visiting the trademark, patent and design registry office a lot.
3. Federal Inland Revenue Service
As a Nigerian businesses owner, you should familiarize yourself with the mandatory tax payments to the federal government like VAT. Usually, all taxes remitted to the government are collected by the FIRS. So all tax laws, enforcement and sanctions are carried out by this regulatory body.
This is the one regulatory body you’d be remitting and interacting with a lot in the course of your business.
4. Standard Organization of Nigeria
The SON is responsible for ensuring that all required goods manufactured and imported, meet up with the standard set for consumer consumption. So if you’re into mass production or importation of goods and services, this is one regulatory body you’ll be getting visits from.
Other regulatory bodies include NAFDAC, NERC, FHA, NNA, NCC, NHIS amongst a host of others. The type of business you’re in determines the regulatory bodies you’ll be running into. For instance, if you’re into real estate, you’ll have to constantly go through the Federal Housing Authority (FHA) for clearance and property checks.
I hope this post has been helpful. What type of business are you running and which one of these regulatory bodies have you had to contact?