Document background
The Single Owner LLC Operating Agreement is a crucial document required when establishing a single-member Limited Liability Company in Nigeria. It serves as the foundation for the company's internal governance and operations, ensuring compliance with the Companies and Allied Matters Act (CAMA) 2020 and other relevant Nigerian regulations. This document becomes necessary when an individual or corporate entity wishes to establish a limited liability company with sole ownership, providing protection for personal assets while maintaining full control over the business. The agreement covers essential aspects such as capital contributions, management structure, profit distributions, and dissolution procedures. It also helps demonstrate the separation between the owner and the business entity, which is crucial for maintaining limited liability protection under Nigerian law. The document should be prepared at the time of company formation and updated as necessary to reflect significant changes in the business structure or operations.
