| Procedures for
Establishing a Business Enterprise by a Foreigner in Nigeria
Requirement
for Business Permit
Expatriate Quota
Incentives
Pioneer Status
Requirements
Technical Service
Agreement
Fees Payable
Technical
Committee on Business Approvals
Procedure
Step 1: Incorporation of the Business at the Corporate
Affairs Commission (CAC) in accordance with the Companies and Allied
Matters Act, 1990.
Step 2: Registration
of the company with Nigeria Investment Promotion Commission for
the granting of Business Permit (NIPC). NIPC also grants approval
for expatriate quota positions and incentives.
Requirement
for Business Permit
- Purchase NIPC Form 1 for N10 000.-
Completed form must be submitted with original receipt.
- Certificate of Incorporation.
- A minimum share capital of N5 million.
- Details of share holding in the
joint venture.
- Joint venture/partnership Agreement
where applicable.
- Memorandum and Articles of Association.
- CAC's Form C02 and CO 7 duly certified.
- Evidence of capital importation
for wholly foreign companies.
- Approval from the appropriate professional
bodies where applicable.
Expatriate
Quota
In addition to the requirements listed under Business Permit, the
following additional requirements have to be met for expatriate quota
approval
- Evidence of acquisition of operational
premises and operational machinery/equipment in the case of industrial
establishment.
- Evidence of Foreign Capital Importation
- Management and Technical Services
agreement ( for service companies)
- Tax Clearance Certificate
- Minimum authorized share capital
of n5 million
- Evidence that the personnel required
is not likely available to be available in Nigeria
- Minimum share capital of N15 million
( for two automatic expatriate quota position) and of N30 million
share capital ( in case of four automatic expatriate quota positions)
- Supply name, addresses, qualifications
and positions to be occupied by the expatriates
- The company must produce its project
implementation programme.
- The company must produce a training
programme for Nigerians in addition to management succession schedule.
- The company will furnish its feasibility
report where applicable especially for new and pioneer industries.
Incentives
These include Pioneer Status and Technical Agreement incentives:
Pioneer
Status
The benefit of a Pioneer Status Certificate is that the holder (i.e.
the company) is exempted from payment of tax for a specified number
of years (5 years or 7 years for companies located in economically
disadvantaged areas)
Requirements
- Certificate of Incorporation
- Memorandum and Article of Association
- Feasibility study
- Tax Clearance Certificate
- Joint Venture Agreement
- Evidence of acquisition and installation
- Evidence of development carried
out at factory site
- NIPC Form 2 ( to be purchase from
NIPC at N10 000.- and should be returned with original receipt)
- The company must not be more than
one year old
- Evidence of physical development
of the factory site
- Joint venture must attain a minimum
expenditure of N5 million
Technical
Service Agreement
This is a form of technical co-operation agreement in which a party
will agree to offer technical services to the company for the payment
of a fee.
Details and terms of
such agreement are normally worked out between the parties involved
but such agreement should be registered with the National Office
for Technological Acquisition and Promotion NOTAP
Fees
Payable
Purchase of NIPC Form 1 or 2 N10 000.-
Approval Fees
Business Permit N5 000. -
Expatriate Quota N5 000, -
Renewal or Redesignation of Quota
N5 000.-
Amendment of Business Permit
N5 000.-
Permanent Until Reviewed (PUR)
N5 000.- Technical
Committee on Business Approvals
A committee of NIPC has been constituted to consider and grant or
reject application for business permit, pioneer status and expatriate
quota within 14 days. The committee is headed by the Executive Secretary.
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