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. The commission once set up a One Stop Investment Centre to coordinate the activities of relevant regulatory agencies in granting License, Permits, Approvals and rendering investment advice to foreign investors in Nigeria.
By the combined effort of the Companies and Allied Matters Act with the NIPC Act, a foreign company can join in the formation of a company in Nigeria and enjoy liberal foreign investment protections, assurance and incentives in Nigeria.
The section 20 of the NIPC Act provides that for 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 provides 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; production of arms and ammunition, production of narcotic drugs and military wears etc.
The requirement for registering a business with NIPC in Nigeria as a local or foreigner includes the following steps;
- The first step is to register the company business with the Corporate Affairs Commission in Nigeria.
- A company seeking to do business in Nigeria must register with the commission and pay stamp duties with the FIRS.
- A formal application is addressed to the Executive Secretary of the Commission, by the applicant first obtaining the duly completed NIPC Form 1 and making a non-refundable deposit of N10, 000 (Ten Thousand Naira)
- The form shall be completed by the company and submitted to the headquarters at Abuja along with the following documents:
- Receipt of payment of the NIPC Form
- Memorandum and Article of Association
- A copy of Certificate of Incorporation, with the minimum share capital of N10,000,000.00 (Ten Million Naira)
- Evidence of capital importation for wholly foreign companies
- The CAC Form 1.1, which comprises the details of the company’s shareholding and particulars of the directors.
- Evidence of a Joint Venture agreement where applicable
- Feasibility report and project implementation program of the company to carry on its business operations.
- Power of Attorney or Letter of Authorization where applicable
- Training programme for Nigerian Staff of the company.
- Payment of prescribed fee
Meanwhile, the NIPC permit is not what all that is required for foreigner to start a business in Nigeria. A company with the foreign participation shall also obtain Business Permit and Expatriate quota (where applicable) before commencing business operations in Nigeria with the Ministry of Interior.
The objective of registering with the Nigerian Investment Promotion Commission is to receive a permit to operate a company with the 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
Email: [email protected]