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In this part of the world, restaurants thrive a lot and this accounts for the lucrativeness of the restaurant business. Restaurants are big businesses not only because they earn a large amount of profits but also due to the legal jargon attached to starting up the business.
The establishment of a restaurant has to undergo very stringent legal processes starting from the really important details like choosing a business structure and goes down to dealing with staff. For establishing a restaurant a handful of legal processes has to be executed, they are highlighted in this list;
- BUSINESS STRUCTURE
In Nigeria, three business structures are popular amongst all businesses, the sole proprietorship, the partnership, and the limited liability company (LLC). The sole proprietorship and the limited liability company structure are peculiar to the restaurant business.
The sole proprietorship allows to have a registered business name and there are only a few restrictions for the business owner, but a huge legal risk accompanies this structure as the business is not a separate legal entity, this means the business and the founder are like the same individual, legally, and this allows the direct effect of legal actions, directed towards the business, on the founder.
An LLC is preferred in this line of business and in other businesses too in Nigeria. The LLC structure allows the business to be a separate legal personality from the founder and limits the company’s liabilities on the founder. Also, it has tax benefits, here is how, since the business is a separate legal entity, properties and assets for personal use can be acquired in the name of the business to legally evade taxes as the acquisition of property by the business will not attract extra taxes.
2. LICENCES AND PERMITS
A variety of licenses and permits must be acquired in order to establish a restaurant business. The licenses are obtained from the Local Government Office of the area and they vary by location, goods retailed (alcohol selling restaurants need a permit) and other determining factors, hence seeking of adequate legal advice is advised when getting your permits.
3. HEALTH AND SAFETY
The business involves publicly feeding people, the possibilities of poisoning is vivid and this is a health complication that arises from lack of hygiene, neglect of consumers’ health safety. Health complications should be avoided to steer the founder and the business away from an avalanche of legal trouble. Apart from health safety, physical safety must be assured too, fire hazards must be checked and also crowd control issues should be checked by seeking permits from police and fire departments.
4. INSURANCE
Insurance policies protect the business from risks that are accompanied by mishaps, accidents, and uncontrolled contingencies, it is advised you seek an insurance agent’s service and sit him with your lawyer to consider assess risks and also protect the business from such risks.
The Occupier Liability Insurance is a must for public buildings that are not used for residential purposes and compensates for damage that occurs in the building and done to the building.
5. TAX
Assessment of tax implications prior to fledging and establishing the business should be considered. There are a handful of compulsory taxes for businesses in the country and some taxes are peculiar to certain states and in order not to break any law concerning illegal tax evasion and related crimes it is advised to seek the service of a legal practitioner that is conversant with tax implications of the state and business.
Now that you know how to start a restaurant business in Nigeria, it’s time to get a business plan for your restaurant business.
How To Download The Restaurant Business Plan Template
If you want the complete Restaurant business plan with the full financial plan, calculations, and more, follow the procedures to download it.
Pay the sum ofN8000 (Eight thousand naira only) to the account detail below:
Bank: GTBank
Name: Oyewole Abidemi (I am putting my name and not our company account so you know we are real people and you can trust us)
Ac/No: 0238933625
Type: Saving
Thereafter, send us your email address through text message to +234 701 754 2853. The text must contain the title of the business plan you want and also your email address. Immediately after the confirmation of your payment, we will send the Restaurant business plan in Nigeria to your email address where you can easily download it.
