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Updated: Mar 29

Developing a sound corporate governance structure is crucial for the success and sustainability of any startup.

One reason why your startup needs a strong corporate governance structure is to create transparency and accountability. A strong corporate governance structure ensures that everyone in your organization is aware of their responsibilities and is accountable for their actions. This helps in building transparency and trust within the organization.

Protecting the interests of all stakeholders, including shareholders, employees, clients, and suppliers, is another benefit of having a sound corporate governance framework. It ensures that the resources of your business are utilized properly and efficiently.

It is also worth mentioning that a startup with a strong corporate governance structure is more likely to attract potential investors. This is because investors feel confident about investing in a company that has a clear decision-making process, risk management processes, and ethical practices in place.

Having a strong corporate governance structure in place ensures long-term sustainability because it aligns the interests of all stakeholders, promotes financial stability, and encourages ethical behavior. It also ensures compliance and regulatory requirements are met.

The question is how do you develop a sound corporate governance structure?

The first step is to identify the legal and regulatory requirements that apply to Nigerian startups. This includes:

  • Registration with the Corporate Affairs Commission (CAC),

  • Registration with the Federal Inland Revenue Service (FIRS),