Document background
The Sole Proprietorship Operating Agreement is a crucial document for individual business owners in Nigeria who wish to establish clear guidelines and procedures for their business operations. This document becomes particularly important when setting up or formalizing a sole proprietorship, as it provides a comprehensive framework for business management, decision-making processes, and regulatory compliance. While not legally required under Nigerian law, having this agreement helps demonstrate proper business governance, can be useful for banking relationships, and provides clear operational guidelines. The agreement typically includes detailed sections on business structure, financial management, tax compliance, and operational procedures, all aligned with Nigerian business regulations and local commercial practices. It serves as both an internal reference document and a tool for demonstrating business legitimacy to external stakeholders.
