As stated earlier in a previous post (click here), for a foreign company to carry out business in Nigeria, such a company must be registered and incorporated in Nigeria just like any other Nigerian company. The steps involved include:
Step 1
Incorporation of a Limited Liability company with a share capital of N10m (Ten Million Naira) at the Nigerian Corporate Affairs Commission (CAC).
All companies intending to operate in Nigeria must be registered with the CAC. The minimum share capital which a private company must have is N10,000. However, for Foreign owned companies, the minimum share capital is N10,000,000 (Ten Million Naira). The process to register is fairly straightforward, and normally takes about 2-4 weeks.
Step 2
Obtain a Tax Identification Number and register for Value Added Tax at the Federal Inland Revenue Service – TIN and VAT Registration. The first action for every company after incorporation is to obtain a tax identification number as it is what the company will use when paying for corporate tax and all other taxes, also important is registering for VAT. Also, companies are expected to file monthly VAT returns to the tax authorities. The process for tax registration takes between 1-2 weeks depending on the location of the tax office.
Step 3
Open Domiciliary Bank Account with a Commercial Bank in Nigeria and obtain a Certificate of Capital Importation. Once a foreign company has been set up in Nigeria, the next thing is to open a corporate bank account where the founders will pay the minimum paid up share capital. Once this is done, the company will need to obtain a certificate of capital importation from its bankers. This document certifies that the funds have been remitted into the bank account, and it is also necessary for future purposes when the company wants to repatriate profits of the company outside of the country. The documents required and timelines depend on the bank where the account is opened.
Step 4
Registration at the Nigerian Investment Promotion Council (NIPC). The NIPC is a body set up by the Federal Government of Nigeria with the aim of encouraging, promoting and monitoring foreign investment into Nigeria. In fulfilling this role of investment monitoring, the NIPC requires that all foreign-owned companies in Nigeria should be registered with it. The NIPC requires some documentation, including data about of the company and the founders, and also tax and banking details.
Step 5
Obtain a Business Permit from the Nigerian Ministry of Internal Affairs. The final step for a 100% foreign-owned company is that it needs to be registered with the Federal Ministry of Internal Affairs and obtain a business permit. This permit is important not only because the company cannot commence trading without it, but also because it is a precondition for the company to obtain an Expatriate Quota and commence work permit applications if it intends to hire foreign workers.
Once the above have been done, the next phase is to ensure that you comply with all business operation regulations. For instance, depending on the nature of the business you have set up, you might be required to register with certain regulatory bodies.
source: https://lawpadi.com/register-foreign-owned-business-nigeria/
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