Procedures for Establishing a Business Enterprise




PROCEDURES FOR ESTABLISHING A BUSINESS ENTERPRISE BY A FOREIGNER IN NIGERIA

STEP 1
Incorporation of the Business at the Corporate Affairs Commission (CAC) in accordance with the Companies and Allied Matters Act of, 1990.

STEP 2
Registration of the company with Nigerian Investment Promotion Commission for the granting of Business Permit. IPC also grants approvals for expatriate quota positions and incentives.

A. Requirements for Business Permit
i. Purchase NIPC form I for N10,000.00. Completed form submitted with original receipt.
ii. Certificate of Incorporation.
iii. A minimum share capital holding in the joint venture.
iv. Details of share holding in the joint venture.
v. Joint venture/partnership Agreement where applicable.
vi. Memorandum and Articles of Association.
vii CAC�€™s Form CO2 and CO7 duly certified.
viii. Evidence of capital importation for wholly foreign companies.
ix. Approval from the appropriate professional bodies where applicable.

B. EXPATRIATE QUOTA
In addition to the requirements listed under Business Permit, the following additional requirements have to be met for expatriate quota approvals.

i. Evidence of acquisition of operational premises and operational machinery/equipment in the case of industrial establishment.
ii. Evidence of Foreign Capital Importation.
iii. Management and Technical Services agreement (for service companies).
iv. Tax Clearance Certificate.

v. Minimum authorised share capital of N5million.

vi. Evidence that the personnel required is not likely to be available in Nigeria.

vii. Minimum share capital of N15 million (for two automatic expatriate quota positions) and of N30 million share capital (in case of four automatic expatriate quota positions).
viii. Supply names, address, qualifications and positions to be occupied by the expatriates.
ix. The company must produce its project implementation programme.
x. The company must produce a training program for Nigerians in addition to management succession schedule.
xi. The company will furnish its feasibility report where applicable especially for new and prior industries.

C. Incentives
These include pioneer Status and Technical Agreement incentives:

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