- A label is a business first, so choose a clear model, register it and open a business account.
- Put every agreement in writing, especially who owns the recordings, how royalties are shared and how either side can exit.
- Start small with one or two artists and a budget for each release.
The Short Answer
Starting a record label means running a business that finds artists, funds and releases music, and shares the income fairly. The creative side is exciting, but long-term success depends on contracts, rights, budgets and trust. This guide gives a practical roadmap for Nigeria. It is general information, so speak to an entertainment lawyer and an accountant before you sign agreements or commit money.
Step 1: Choose Your Label Model
| Model | What you do |
|---|---|
| Traditional label | Fund and own or license recordings, and share income with artists |
| Label services | Provide marketing, distribution and support for a fee or a smaller share |
| Management plus label | Develop the artist's career and release their music |
Step 2: Register the Business
Decide whether to register a business name, a limited company or another structure with the Corporate Affairs Commission. Follow our CAC registration guide, then open a proper business account. See business banking alternatives. Also review obligations under Nigeria's new tax law.
Step 3: Get the Contracts Right
- Artist agreement: length of the deal, number of releases, who owns the masters, royalty percentages, advances and how recoupment works.
- Exit terms: what happens if either side wants to leave.
- Split sheets: who wrote and produced each song and their shares.
- Producer, feature and video agreements.
- Sample and licence clearances.
Have each artist get independent legal advice. Fair deals build trust and protect your label.
Step 4: Rights and Royalties
Register works with the relevant collecting societies, such as COSON in Nigeria, and make sure recordings have correct metadata and codes. Choose a distributor carefully, check fees and reports, and keep accurate accounts for every release. Learn how artists earn in how artists make money in 2026.
Step 5: Plan and Budget Each Release
- Recording, mixing and mastering.
- Artwork and video.
- Distribution and pitching.
- Marketing and content, using ideas from our content calendar guide and music promotion page.
- Shows, press and radio.
Set a budget before you start and track spending against it. If cash is tight, read about business loans carefully and avoid predatory lenders (guide).
Step 6: Build Your Brand and Team
Create a simple website and social presence, share your artists' stories and build an email list. See how to start a blog and look at the Grammy pathway in our eligibility guide.
Action Checklist
- Choose your label model
- Register the business and open a business account
- Write fair artist agreements and use a lawyer
- Create split sheets for every song
- Register works with a collecting society
- Budget every release in advance
- Start with one or two artists and learn
