HOW TO REGISTER A FOREIGN COMPANY IN NIGERIA
Companies registered in other countries can also be registered anywhere in the world. The process of registering foreign companies for business participation in other countries can be a little overwhelming considering the factors of setting up a company in a totally new environment with different laws, business values and challenges. We have decided to write this short article in order to aid foreigners who intend to register businesses in Nigeria.
The Nigerian system has made it quite easy for foreign business participation in Nigeria. There are a few requirements for such participation and they include;
- Foreign companies intending to do business in Nigeria must incorporate a limited liability company with share capital of at least 10million naira with the Corporate Affairs Commission (CAC). This process usually takes 2-3weeks.
Requirements for the registration of a foreign company in Nigeria
- A Nigeria address for receipt of documents and notices
- Name and address of business
- Nature /object of business
- Share capital at least 10million naira and the share capital structure i.e how it would be shared between the shareholders.
- Particulars of shareholders and valid identification cards
- Particulars of directors and valid identification cards
- Particulars of secretary and valid identification cards.
There are exceptions to this general rule of registration of foreign companies in Nigeria as stated in (S 56) Companies and Allied Matters Act (CAMA). These exceptions are:
- Foreign companies invited to Nigeria by the government to carry out a specific duty.
- Foreign companies in Nigeria for the execution of specific individual loan projects on behalf of a donor or international organization
- Foreign companies engaged only in export promotion activities
- Engineering consultants and technical experts engaged in specialist project under contract with the government or any other agency where such contract is approved by the government.
REQUIREMENT OF FOREIGN COMPANIES AFTER REGISTRATION
- TIN and VAT registration; Foreign companies are expected to obtain a tax identification number at the Federal Inland Revenue. This process can take 1-2 weeks.
- Foreign companies are required to open a domiciliary with a bank in Nigeria and obtain certificate of capital importation.
- Foreign companies are required to register at the Nigerian Investment promotion council a body set up to monitor foreign investment in Nigeria.
- Foreign companies are required to register with the Federal Ministry of Internal Affairs and obtain a business permit, which is a requirement to obtain expatriate quota and start its work permit application if it intends to employ foreign staff.
After the fulfillment of these steps your company is ready for business in Nigeria.
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