Company Formation in Nigeria | Business Registration | IMC
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Nigeria

SET UP A BUSINESS IN NIGERIA

Nigeria is found in Western Africa, sharing the bore with the Gulf of Guinea, between Benin and Cameroon. This oil-rich country is Africa’s most populous, with over 170 million people. Nigeria is the 12th largest producer of crude oil in the world and the 8th largest exporter. The government however is working toward developing stronger public-private partnerships for roads, agriculture, and power, in order to move away from its dependence on oil. Nigeria is a vigorous member in the Organization of Islamic Cooperation (OIC) trading bloc, minimizing tariffs when trading with any of the 57 member countries, together with Saudi Arabia, UAE, and Malaysia. The Nigerian Stock Exchange (NSE) is the number one ranked exchange in Africa and offers glorious investment prospects having grown 70.5% in 2013.

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 Company Formation in Nigeria

  • Foreign entrepreneurs interested in Nigeria company registration can wholly own a limited liability company (LLC) with a minimum of 2 shareholders and 2 directors of any nationality.
  • Foreign corporations can also create a wholly foreign owned presence in Nigeria by registering a branch office or representative office or incorporating a limited liability company as a subsidiary
  • Free zone companies allow international entrepreneurs to import and export without any taxation in Nigeria. Nigeria boasts 25 Export Processing Zones (EPZ), offering foreign companies i) a tax holiday on all taxes including federal, state, and local government taxes ii) duty free importation iii) 100% return of capital, profits, and dividends

 Company Registration in Nigeria – Licensing

  • A license is needed for all business activities. To support Nigeria business registration, IMC can assist our clients in determining what type of licenses are required for their company
  • Any business registered within an Export Processing zone is exempt from all import and export licensing requirements, though an operating license is required for many business activities
  • Foreign ownership is restricted in the aviation, shipping, petroleum, real estate and telecommunication industries

Accounting and Tax for Company Registered in Nigeria

  • Both resident and non-resident corporations are subject to corporate tax of 30% on net profits
  • Registering a Nigeria LLC is liable to pay a VAT rate of 5% on goods unless incorporated within a Freezone, in which the VAT is  0%
  • Under the Nigeria tax law, Companies are liable to pay withholding tax on the following types of payment made to non-resident: interest, royalties and other service fees. The rate of withholding is 10% of gross paymentCompany Incorporation in Nigeria
  • Foreign entrepreneurs interested in Nigeria company registration can wholly own a limited liability company (LLC) with a minimum of 2 shareholders and 2 directors of any nationality.
  • Foreign corporations can also create a wholly foreign owned presence in Nigeria by registering a branch office or representative office or incorporating a limited liability company as a subsidiary
  • Free zone companies allow international entrepreneurs to import and export without any taxation in Nigeria. Nigeria boasts 25 Export Processing Zones (EPZ), offering foreign companies i) a tax holiday on all taxes including federal, state, and local government taxes ii) duty free importation iii) 100% return of capital, profits, and dividends
Type Limited Liability Company/Branch office
Under Nigerian law, foreigners can own 100%
Share Capital 10 million naira
Directors Minimum two directors, may be resident or non-resident
Shareholders Minimum two shareholders of any nationality
Memorandum and Articles of Association Provided
Can the entity hire expatriate staff in Nigeria Yes
Secretary Not mandatory
Tax Registration Certificate Required Yes
Statutory audit required Yes
How long to open Corporate Bank Account 2 weeks
Timeframe for Incorporation: 3 – 4 weeks
Annual Return Must file with Corporate Affairs Commission
Annual Tax Must file with Federal Inland Revenue Service
Access to Nigeria double tax treaties Yes

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