Company Formation in Nigeria – SK Patodia

ADVANTAGES OF COMPANY FORMATION IN NIGERIA

Nigeria can be categorized as an emerging market and a middle-income and mixed economy. It is ranked as the 27th-largest economy in the world in terms of nominal GDP, and the 24th-largest in terms of purchasing power parity. Moreover, Nigeria has the eight largest oil and gas reserves in the world. Starting a business in Nigeria is particularly rewarding for sectors such as manufacturing, finance, technology and service. Following are a few reasons why registering a company in Nigeria is a smart business decision.

  • Several economic zones offer tax incentives, which serves as a catalyst for setting up a company in Nigeria.

  • It enjoys a liberal exchange of control regulations.

  • The pro-business government of Nigeria prioritizes physical and industrial infrastructure development.

  • It has the highest projected GDP growth in Africa.

  • With an enormous land resource, it provides tremendous investment opportunities in the solid minerals sector.

  • It offers the lowest production cost in Africa due to the availability of skilled labour at an economic cost.

  • A balanced political climate as compared to the rest of the African market.

  • It’s fast progression towards a free market economy.

REQUIREMENT TO OPEN A COMPANY

BASIC REQUIREMENTS

  • Minimum 2 shareholder (Individual/ Corporate Entity).
  • Minimum 2 director.
  • A director or shareholder can be the same or different person of any nationality.
  • There is no requirement of local / resident directors for Nigerian Company. However, it is advised to keep one in a matter where it will be required that a Director should be around physically present for any work related to authorities.
  • 100% local or foreign shareholding allowed.
  • Minimum paid‐up capital for registration of a Nigerian company is 10,000,000 Naira.
  • A local registered office address is mandatory.
  • It is mandatory to appoint a Company Secretary.
  • There is no requirement to be physically present at the time of company registration, but banks in the Netherlands require the physical presence of the company principals at the time of account opening as part of their due diligence procedure.

DOCUMENTS REQUIRED

Individual Shareholder:

  • Application forms duly signed by the authorized signatory.
  • Passport Copy of the UBOs/ Shareholders/ Directors.
  • Copy of National Identity Card/Aadhar Card of the UBOs/ Shareholders/ Directors.
  • Most Recent Utility Bill/ credit card statement/ bank statement with name and residential address of the UBOs/ Shareholders/ Directors.
  • Curriculum Vitae (CV) /Profile of the UBOs/ Shareholders/ Directors.

Corporate Shareholder:

  • Applications forms duly signed by the authorized signatory.
  • Certificate of Incorporation of the corporate shareholder (mother company).
  • Memorandum & Articles of Association of the mother company.
  • Board Resolution detailing the formation of the branch or the subsidiary nominating an authorized manager.
  • Passport Copy of the UBOs/ Shareholders/ Directors.
  • Copy of National Identity Card/Aadhar Card of the UBOs/ Shareholders/ Directors.
  • Most Recent Utility Bill/ credit card statement/ bank statement with name and residential address of the UBOs/ Shareholders/ Directors.
  • Curriculum Vitae (CV) /Profile of the UBOs/ Shareholders/ Directors.

OUR SERVICES

Incorporation Services:

  • Company Formation.
  • Tax & VAT Registration (Full registration with FIRS, Obtaining of TIN, Company's Income Tax and VAT Registration with Federal Inland Revenue Service (FIRS), Obtaining the VAT Certificate, Tax Clearance Certificate for the period of 6 months).
  • SCUML (Special Control Unit Against Money Laundering).
  • Business Permit and Expatriate (Approval of Business Permit from Federal Ministry of Interior (FMI), Approval (Expatriate Quota) – Optional.
  • Immigration Permit (STR & CERPAC) – Optional.
  • Assistance in the Corporate Bank Account Opening Process.
  • Capital Importation.
  • National Investment Promotion Council (NIPC) (Registration with the Ministry).
  • Registration with National Information Technology Development Agency (NITDA) – Optional.
  • Registration with National Office for Technology Acquisition and Promotion (NOTAP) – Optional.
  • Provision for the Company Secretary in Nigeria for the 1st year.
  • Provision for the Resident Nominee Director in Nigeria for the 1st year.
  • Provision for the Registered Office Address Services in Nigeria for the 1st year.

Other Maintenance & Compliance Services:

  • Renewal for the Company Secretary in Nigeria Annually.
  • Renewal for the Local Nominee Director in Nigeria Annually.
  • Renewal for the Local Registered Office Address in Nigeria Annually.
  • Accounting (depending on the volume).
  • Drafting of the financial statements Statutory Audit (depends on volume and complexity).
  • Corporate tax filing (depends on complexity).

TIME PERIOD

The incorporation process can typically be concluded within a period of four (4) business days from the date on which all official fees have been paid and all relevant documents are filed with the CAC.
It is important to note that through the efforts of the Presidential Enabling Business Environment Council (""PEBEC"") at continuously improving the ease of doing business in Nigeria, a lot of innovative legal reforms have been introduced and implemented in order to enhance the process and/or shorten the time it takes to register a business in Nigeria. These reforms are implemented through the Ease of Business Environment Secretariat (""EBES"").
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