PROCEDURE FOR NIPC REGISTRATION IN NIGERIA
Nigerian Investment Promotion Commission (NIPC) is a Federal Government Agency in Nigeria established by the NIPC Act 1995. The objective of the NIPC is to promote, coordinate and monitor investments in Nigeria. The commission initiates and supports the enhancement of the investment climate in Nigeria for both Nigerian and Non- Nigerian Investors.
By the combined effect of the Companies and Allied Matters Act with the NIPC Act, a foreigner or foreign company can join in the formation of a company in Nigeria and enjoy liberal foreign investment protections, assurance and incentives in Nigeria.
Section 20 of the NIPC Act provides that an enterprise in which foreign investment is permitted shall before the commencement of business register with the Commission, but before registration, the enterprise with foreign participation must first be incorporated under the Companies and Allied Matters Act. What this implies is that foreigners can invest and participate in the operations of any enterprise in Nigeria except for enterprises that engage with activities in the negative list, which includes; the production of arms and ammunition, the production of narcotic drugs and military wear etc.
When the company has been duly registered with CAC, the next step is to register with the NIPC. The registration is done by duly completing the registration form and providing the required documentation and details.
The requirements for registering a registered company with NIPC include the followings:
- A copy of the Certificate of Incorporation of the company
- Memorandum and Article of Association
- The CAC Form 1.1, which comprises the details of the company’s shareholding and particulars of the directors.
- Particulars of the company
- Particulars of shareholders, which will include name, email, phone number and country of residence
- Description of business activities
- Investment information, which includes the company structure, number of proposed employees, and investment value in USD among others.
- Payment of registration fee
Meanwhile, the NIPC permit is not all that is required for a foreigner to start a business in Nigeria. A company with wholly foreign participation must also obtain a Business Permit and Expatriate quota (where applicable) from the Ministry of Interiors before commencing business operations in Nigeria
The objective of registering with the Nigerian Investment Promotion Commission is to receive a permit to operate a company with foreign participation or investment in Nigeria.
The benefits of registering with the NIPC are many for the investors, but the most important one is that the Nigerian Investment Promotion Commission Act ensures that no foreign-owned enterprise or establishment shall be expropriated or nationalized by any government in Nigeria after the due registration with the NIPC.
By the Corporate & Commercial Law Department at Resolution Law Firm, Nigeria