WHAT YOU SHOULD KNOW ABOUT COMPANY SET UP IN NIGERIA
The sole government agency responsible for company registration in Nigeria is the Corporate Affairs Commission (CAC) and all applications for company registration must be channeled to the CAC.
The most suitable form of business structure in Nigeria is a private company limited by shares (popularly known as LLC or LTD). Also, it is the only type of structure recommended for a foreigner seeking to incorporate a company in Nigeria
All companies registered in Nigeria must have a local address of service at the point of registration, and where a foreigner is involved in the company, the company must also have a local secretary.
The basic requirements to register a company in Nigeria are the proposed name of the company, valid identification card, address, phone number, and email of the director/shareholder.
A company can have just one shareholder/director provided a foreigner is not involved in the company. However, a person who is below the age of 18 is not eligible to be a company director in Nigeria.
Where any of the shareholders or directors of a company will be a foreigner, the minimum authorized share capital shall be NGN100 Million. The CAC (government) does not require evidence of payment of the share capital during the incorporation process although it is deemed to have been paid.
Registering a company in Nigeria does not automatically qualify one to engage in all or any kind of business. Some industries are subject to special regulatory control and licenses must be obtained from the industries’ regulator before one can engage in industries.
Although Nigerian companies do not expire once registered and are not subject to renewal, however, all companies registered in Nigeria are required to file annual returns with the CAC. This can be filed by a solicitor on behalf of the company.
All registered companies must register at the tax office (FIRS) to obtain and activate a Tax Identification Number(TIN) after incorporation, the TIN is required for opening a corporate bank account.
All company incorporation documents are now issued electronically, which include the Memorandum and Articles of Association(MEMART), Certificate of Incorporation, and Application for Registration of the Company.
The minimum share capital threshold applies to some categories of businesses in Nigeria. What this implies is that before someone can register a company to engage in business in some industries, the company must have a certain share capital amount.
Registration of a company in Nigeria does not automatically qualify a foreigner to be a signatory to a corporate bank account in Nigeria. All persons seeking to open or operate a bank account must have a Nigerian Bank Verification Number (BVN). There are foreign locations to obtain the BVN.
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Resolution Law Firm is an accredited company registration agent in Nigeria.