Procedures for Establishing a Business Enterprise

PROCEDURES FOR ESTABLISHING A BUSINESS ENTERPRISE BY A FOREIGNER IN NIGERIA
...Continued

PIONEER STATUS
The benefit of a Pioneer Status Certificate is that the holder (i.e. the company) is exempted from payment of tax for a specified number of years (5 years or 7 years for companies located in economically disadvantaged areas).

Requirements
I. Certificate of Incorporation.
ii. Memorandum and Articles of Association.
iii. Feasibility study.
iv. Tax Clearance Certificate.
v. Joint Venture Agreement.
vi. Evidence of acquisition and installation.
vii. Evidence of development carried out at factory site.
viii. NIPC Form II (to be purchased from NIPC at N10,000 and should be returned with original purchase receipt).
ix. The company must not be more than one year old from its commencement date of production.
x. Evidence of physical development of the factory site.
xi. Joint venture must attain a minimum expenditure of N5 million.

TECHNICAL SERVICE AGREEMENT
This is a form of technical co-operation agreement in which a party will agree to offer technical services to a company for the payment of a fee.

Details and terms of such agreements are normally worked out between the parties involved but such agreements should be registered with the National Office for Technical Acquisition and Promotion (NOTAP).


D. Fees Payable
Purchase of NIPC Form I or II N10,000.00

Approval Fees
Business Permit N5,000.00
Expatriate Quota N5,000.00 per slot
Renewal or Redesignation of Quota N5,000.00 per slot
Amendment of Business permit N2,500.00
Permanent Until Reviewed (PUR) $5,000 per slot
Pioneer Status N10,000.00


E. Technical Committee on Business Approvals
A committee of NIPC has been constituted to consider and grant or reject applications for business permit, pioneer status and expatriate quota within 14 days. The committee is headed by the Executive Secretary.

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