NIGERIAN INVESTMENT PROMOTION COMMISSION
GUIDELINES / PROCEDURES FOR DOING BUSINESS IN NIGERIA
Based on the existing legal framework, any investor that
wishes to do business in Nigeria is required by law to register a company with
the Corporate Affairs Commission and pay stamp duties with the Federal Inland
Revenue Services (FIRS).
For the purpose of clarity and simplicity, the NIPC has
divided into stages the procedures for doing business in Nigeria either by a
local or a foreigner as the case maybe. Please find below the processes:
Stage
1:
Corporate Affairs Commission (CAC) was established under
the Companies and Allied Matters Decree No. 1 of 1990. The Commission has
statutory responsibility for registration of companies, business names and
Incorporated Trustees.
.
REQUIREMENTS FOR COMPANY INCORPORATION
• Conduct an availability/name Search,
at the CAC Desk, for the proposed Company to be registered.
• Once the desired name has been
cleared, a set of incorporation forms will be purchased, and the investor may
proceed to prepare the Memorandum and Articles of Association for the Company.
• Initial documents are then submitted
to the Federal Inland Revenue Service Desk for payment of stamp duties and
stamping.
• Completed and stamped documents with
attached permit(s) are to be submitted to the CAC Desk for verification.
• The Certificate of Incorporation is
then handed over, with accompanying Certified True Copies of relevant
documents, to the investor.
Note:
• The investor has an 18-month grace
period before paying for Annual Returns on the Company.
• All Post Incorporation processes are
done at the Head Office of CAC where all Company files are kept in safe custody
pending the completion of the on-going data entry on CAC records.
For further information visit website at www.cac.ng.org.
FEDERAL INLAND REVENUE SERVICE (FIRS)
Under the extant laws in Nigeria, Companies are required
to register and render their tax returns to the FIRS Tax Offices nearest their
registered addresses and pay their taxes there.
Requirements for
payment of Stamp Duties
Documents submitted for the payment of Stamp Duty are the CAC 2 Form
(statement of share capital), and 2 (two) duly completed and signed Memorandum
and Articles of Association.
• When the Stamp Duty has been paid and the
incorporation documents stamped at the FIRS Desk, the investor returns to the
CAC Desk to complete the incorporation process. He or she will be given FIRS
Taxpayer Registration input form for companies to fill and submit to the FIRS
Desk.
• A Tax Clearance Certificate is issued after the
investor presents evidence of incorporation.
• At the point of collection of the Tax Clearance
Certificate, the following relevant Tax forms are issued with the addresses of
the Integrated Tax Offices to enable the investor commence the process of
rendering returns.
Note: Payment of Stamp Duties on share capital is
compulsory for all incorporating companies, and varies according to the
company’s share capital amount.
Value Added Tax
The Value Added Tax (Nigeria) is a
tax on supply of goods and services which is eventually borne by the final
consumer but collected at each stage of the production and distribution chain
at the rate of 5%. The VAT was introduced to Nigeria Tax Laws in 1993 as a
replacement to the Sales Tax and came into force on 1st January,
1994.
WHO IS REQUIRED TO REGISTER
All domestic manufacturers,
wholesalers, distributors, importers and suppliers of goods and services in
Nigeria are expected to register for VAT. Also, non-resident companies that
carry on businesses in Nigeria are expected to register using the addresses of
the persons with whom they have subsisting contracts as their addresses for the
purposes of correspondences relating to the tax.
TAXABLE ACTIVITY
A taxable activity includes any
activity other than those mentioned in the exempt list of the Value Added Tax
Act, 2007, conducted as business, vocation, trade and profession. It includes
the activities of governments, associations and clubs.
ZERO-RATED SUPPLIES
Zero-rated supplies are supplies
that are charged to tax at the rate of 0%. This includes non-oil exports, goods
and services purchased by diplomats and goods purchased for use in humanitarian
donor funded projects. The main difference between a company whose products have
been exempted from VAT and a company whose supplies are zero-rated is that the
former need not register for VAT while the latter is mandatory to register and
also submit VAT returns.
SUBMISSION OF TAX RETURNS
Once a company is registered for
VAT, such a company is expected to render VAT returns of activities on a monthly
basis to the Tax Office treating the tax matters of the company. The activity
of a particular month is reported on the VAT returns of the following month
which is due for submission on or before the end of that month.
Stage 2:
In accordance with the NIPC Act No. 16 of
1995, every company with foreign participation after incorporation with Corporate
Affairs Commission (CAC) must register their company with the NIGERIAN
INVESTMENT PROMOTION COMMISSION (NIPC).
Requirements for Business Registration
i. Duly completed NIPC Form I (collected at the OSIC Centre)
ii. Memorandum & Articles of Association
iii. Evidence of Incorporation
iv. CAC Forms CO2 and CO7
v. Power of Attorney/ Letter of Authority (where applicable)
Stage 3:
An enterprise, in which foreign participation is involved, shall
obtain Business Permit and Expatriate Quota before commencing operations in
Nigeria with the Ministry of Interior.
The Citizenship and Business Department of the Ministry of Interior
has responsibility for administering and enforcing the provisions of the
immigration Act. 1963 as they relate to the establishment of business in
Nigeria and the employment of expatriates. In other words, the Interior
Ministry is entrusted principally with the following responsibilities:
Requirements for Business Permit and Expatriate Quota
i.Formal application letter to the Honourable
Minister, Ministry of Interior
ii.Minimum share capital requirement of N10million
iii.Duly completed Immigration Form T1
iv.Certificate of incorporation
v. CAC forms C02 and CO7
vi.Memorandum and Articles of Association
vii.Tax Clearance Certificate
viii.Certificate of Capital Importation
ix.Evidence of acquisition of business premises
x.Tenancy or Lease Agreement (to be registered with
Federal Inland Revenue)
xi.Feasibility Report or Business Plan
xii.Training Programme for Nigerians
xiii. Schedule of names, addresses, qualifications and
positions to be occupied by expatriates
xiv. Evidence of machinery acquisition (where
necessary)
xv. Bank reference
Fees
of different Agencies at the One Stop Investment Centre (OSIC)
A. GRANT OF BUSINESS REGISTRATION CERTIFICATE
SN
|
SERVICES
|
FEES
|
1
|
Business Registration application form
(NIPC
Form 1)
|
Free
|
2
|
Issuance of Business Registration
certificate
|
N50,000
|
B.
GRANT OF PIONEER STATUS INCENTIVE
SN
|
SERVICES
|
FEES
|
1
|
NIPC
Form 2
|
|
2
|
Processing fee
|
|
3
|
Collection of Approval Letter
|
|
4
|
Application of Pioneer Status Extension
|
Free
|
5
|
Approval of Pioneer Extension
|
C. COMPANY
INCORPORATION (Corporate Affairs Commission)
SN
|
SERVICES
|
FEES
|
1
|
A set of company incorporation forms
|
|
2
|
Availability form
|
|
3
|
Registration of public companies
whose share capital does
not exceed
Exceeds
|
first
|
4
|
Registration of private companies
whose share capital does not exceed
Exceeds
|
first
|
5
|
Registration of increase in share capital
of public companies for every
|
|
6
|
Registration of increase in share capital
of private companies for every
|
|
7
|
Certified True Copy of Memorandum and
Articles of Association
|
|
8
|
Certified True Copy of CO2, CO7,
and CO6
|
D. STAMP
DUTY (Federal Inland Revenue Service)
N1.50 is charged
for every N200.00 worth of Share Capital. A sum of N100.00 is also charged on
each Memorandum and Articles of Association submitted for stamping.
E. FEES
FOR EXPATRAITE QUOTA POSITIONS ( Federal Ministry of Interior)
S/N
|
SERVICES
|
FEES
|
1.
|
Business Permit/Expatriate Quota: ( Form T1)
|
|
2.
|
Grant of Establishment Quota (per slot)
|
|
3.
|
Renewal of Quota Position (per slot)
|
|
4.
|
Additional Quota (per slot)
|
|
5.
|
Stay of Action
|
|
6.
|
Regarding of Quota (per slot)
|
|
7.
|
Appeal Processing Fee
|
|
8.
|
Restoration of Lapsed Quota
|
|
9.
|
Upgrading of Quota P.U.R (per slot)
|
$10,000
|
10.
|
Resignation of P.U.R. slot (GM to MD or MD to
GM etc)
|
$10,000
|
11.
|
De-tagging /Extension of Quota (per slot)
|
|
12.
|
Revalidation of Lapsed Quota (per slot)
|
F. FEES
FOR IMMIGRATION SERVICES (Nigerian Immigration Services)
S/NO
|
CATEGORY
|
FORM
ISSUED
|
CERPAC
VALID
1 YEAR
|
1.
|
Missionary
|
CR
|
$200
|
2.
|
Students
|
CR
|
$200
|
3.
|
Non ECOWAS
African Nationals
|
CR
|
$200
|
4.
|
Cameroonians
|
CR
|
$240
|
5.
|
Others
|
AO
|
$350
|
Agencies
and the services rendered at the One Stop Investment Centre
Agency
|
Mandate
|
Role in OSIC
|
|
1.
|
NIGERIAN INVESTMENT PROMOTION COMMISSION (NIPC)
|
The Nigerian Investment Promotion Commission
(NIPC), as a Federal Government Agency, was established by Act of Parliament
No. 16 of 1995 to among others; encourage,
promote and coordinate
investments in the Nigerian economy.
|
Registration of Foreign Investments, Issuance of
Business Permits, Complaint Management, Linkages with NIPC Departments, and
other Government Agencies, Country-wide liaison with the 36 States on
investment matters etc.
|
2.
|
CORPORATE
AFFAIRS
COMMISSION (CAC)
|
CAC was established under the Companies and
Allied Matters Decree No. 1 of 1990.The Commission has statutory
responsibility for registration of companies, business names and Incorporated
Trustees.
|
Undergo Name searches and Company Incorporation
|
3.
|
NIGERIA
IMMIGRATION
SERVICE (NIS)
|
The Nigerian Immigration Service (NIS) was formally
established by an act of Parliament (section 5 of Immigration Act L.N. Cap.
171 1963) to attend to immigration matters.
|
Provision of information and guidance on
immigration matters, regularization of Permanent Work Permits and issuance of
STR Visas
|
4.
|
NIGERIA CUSTOMS SERVICE (NCS)
|
Established by Customs and Excise Management Act (CAP 45 LFN 2004), ‘An Act to
regulate the management and collection of duties of Customs and Excise, and
for purposes ancillary thereto’.
|
Issuance of Import & Export Guidelines,
Procedure for citing Excise Factories, Goods clearance facilitation and
general information on Fiscal Policy issues.
|
5.
|
FEDERAL INLAND REVENUE SERVICE (FIRS)
|
FIRS
mandate is to assess, collect and account for the taxes accruable to the
Federal Government under the Companies Income Tax
(amendment) Act, 2007, the Value Added Tax (Amendment) Act, 2007 and the
Federal Inland Revenue Service (Amendment) Act, 2007.
|
Tax Registration , Payment of Stamp Duties,
Issuance of Tax Clearance Certificates
and issuance of Tax Forms
|
6.
|
NATIONAL OFFICE FOR TECHNOLOGY ACQUISITION &
PROMOTION (NOTAP)
|
NOTAP,
a parastatal of the Federal Ministry of Science and Technology, was
established by Decree No. 70 of 1979 to among other things facilitate and
implement the acquisition, promotion and development of technology in
Nigeria.
|
To
facilitate the registration of contract agreements dealing with transfer /
acquisition of Technology between Nigerians and their foreign partners.
Facilitate
approvals for licenses, Patents and Franchises etc.
|
7.
|
NATIONAL AGENCY FOR FOOD & DRUG ADMINISTRATION & CONTROL
(NAFDAC)
|
National Agency For Food & Drug Administration & Control (NAFDAC), was
established by Decree No 15 of 1993 as amended by Decree 19 of 1999 and now
the National Agency For Food &
Drug Administration & Control Act Cap N1 Laws of the Federation of
Nigeria (LFN) 2004.
This Act mandates
NAFDAC to regulate and control the manufacture, importation, exportation,
distribution, advertisement, sale and use of food, drugs, cosmetics,
chemicals, detergents, medical devices and packaged water (known as regulated
products).
|
Provision of
information, advisory services, facilitation and kick starting of
registration process on products.
On-going processes such
as registration of pharmaceuticals and food can be facilitated at the
Centre. The registration status of a
product can also be obtained at the Centre through the NAFDAC Registered
Products Automated Database (NARPAD).
|
8.
|
STANDARDS ORGANIZATION OF NIGERIA (SON)
|
SON was established by Enabling Act No. 56 of
1971 for preparing, implementing and promoting standards for products and
processes and for ensuring compliance with Federal Government policies on
standardization and conformity assessment of both locally manufactured and
imported goods, throughout the country.
|
Facilitates
all aspects of Standardization activities, approvals or permits for use of
standards.
Provision of information and guidance on
the following:
·
MANCAP Certification
·
SONCAP Certificate
·
Training in NIS ISO 9000 and NIS ISO 14000
|
9
|
MINISTRY OF MINES AND STEEL DEVELOPMENT (MMSD)
|
The Ministry is saddled with responsibility for
the formulation and execution of policies as well as the enforcement of all
Laws relating to prospecting, mining, and quarrying of Solid Minerals
throughout Nigeria. The Ministry, through its Agency, the Nigerian Geological
Survey Agency (NGSA), is also responsible for the geological mapping and
exploration of Minerals with a view to providing information for investors.
|
Facilitation
in obtaining Exploration Licenses, Mining Leases and Provision of information
and guidelines on investing in the Solid Minerals Sector
|
10
|
NATIONAL BUREAU OF STATISTICS (NBS)
|
The
National Bureau of Statistics (NBS) is the Federal Agency mandated by Law to
produce statistics for the Nation on all aspects of Human Activities
|
Provision
of information on Statistical Data on the Nigerian Economy
|
11
|
MINISTRY OF THE FEDERAL CAPITAL TERRITORY (FCTA)
|
The Federal Capital Development Authority (FCDA)
was created by virtue of the FCT Act of 1976 to oversee the development of
the new city. In 1979, it was given the status of a Ministry called the
Ministry of Federal Capital Territory created via an official gazette
extra-ordinary no. 55 volume 66 October 26, 1979, by virtue of this Act FCDA
has the responsibility of planning and development of the entire FCT.
|
Facilitation on Land Matters for investment
Projects, promotion of investments especially in Tourism, Infrastructure,
Industries etc and provision of general information on the FCT.
|
12
|
FEDERAL MINISTRY OF FINANCE (FMF)
|
The
Federal Ministry of Finance is conferred with the responsibility of
controlling, managing and monitoring revenues and expenditures of public
finance of the Federation
|
Administration
of Industrial Incentives, Tariff Administration and general information and
guidelines on Fiscal Policy
|
13
|
CENTRAL BANK OF NIGERIA (CBN)
|
The core mandate of the Central Bank of Nigeria
(CBN) is derived from the provisions of the CBN Act of 2007. The functions
are mainly in the following:
§ Ensure Monetary and Price stability
§ Issuance of legal tender currency
§ Maintenance of External Reserve to safeguard the international value
of the legal tender currency;
§ Promotion of a Sound Financial System and
§ Banker and financial adviser to the Federal Government.
|
Provision of information on financial sector
regulatory requirements and procedures for carrying on such transactions by
prospective investors, guidelines on correspondent banking and funds
transfer, including Capital Importation.
|
14
|
NIGERIA MARITIME ADMINISTRATION AND SAFETY AGENCY (NIMASA)
|
NIMASA has the mandate to superintend the
holistic but systematic implementation of the National Shipping Policy, the
Nigerian Maritime Labour Policy; the Cabotage Law and the Nigerian Shipping
Laws which are all geared towards the development of the Nigerian Maritime
Sector to contribute optimally to the country’s socio-economic development.
|
Provision of general information and guidance and
facilitating investments in the Maritime Sector.
|
15
|
THE FEDERAL MINISTRY OF INTERIOR (FMI)
|
The Ministry of Interior has responsibility for
administering and enforcing the provisions of the Immigration Act. 1963 as
they relate to the establishment of business in Nigeria and the employment of
expatriates. Hence the Ministry is
statutorily mandated to, amongst others to do the following:
· Responsible for Commercial and Civil Regulation.
· Issuance of Expatriate Quota / Business Permit in
Nigeria.
|
Provision of general information and guidance and
facilitating the issuance of Business Permits and Expatriate Quota
|
16
|
NIGERIAN EXPORT PROMOTION COUNCIL (NEPC)
|
The Nigerian Export Promotion Council (NEPC) is
the apex government agency charged with the responsibility of promoting non
Oil Export in Nigeria. It was established through the Nigerian Export Decree
No. 26 of 1976 and is
statutorily mandated to, amongst others do the following:
· Promote the development and diversification of
Nigeria’s export trade.
· Assist in promoting the development of
export-related industries in Nigeria.
· Spearhead the creation of appropriate export
incentives.
· Articulate and promote the implementation of
export policies and programmes of the Nigerian Government.
|
Facilitating investments and Provision of general
information and guidance related to Nigeria’s Export Trade.
|
17
|
NIGERIAN ELECTRICITY REGULATORY COMMISSION (NERC)
|
NERC is an independent regulatory
agency which was established by the Electric Power Sector Reform Act
2005 and is mandated to carry
out the monitoring and regulation of the
electricity industry, issuance of licenses to market participants, and
to ensure compliance with market rules and operating guidelines.
|
Facilitating investments and Provision of general
information and guidance in the Electricity Industry in Nigeria.
|
18
|
MINISTRY OF FOREIGN AFFAIRS (MFA)
|
The Ministry of Foreign Affairs (MFA) by the
provision of the constitution of the Federal Republic of Nigeria is the
statutory organ of Government charged with the primary responsibility of
formulating, articulating and conducting Nigeria’s Foreign Policy.
|
Facilitating and fast-tracking all trade and
investment related issues through over hundred Missions abroad and carrying out
basic due diligence of foreign companies.
|
19
|
NATIONAL PLANNING COMMISSION
|
NPC was established by Act No. 71 of 1993 to
among other things determine and advices on policies that will best promote
national unity and integration and sustain the Nigerian nation. The key
functions include:
·
Provision of policy advice to Mr. President in
particular and Nigeria in general on all sphere of national life;
·
Set national priorities and goals and engender
consensus amongst public & private sectors stakeholders for its
accomplishment;
·
Undertake periodic review of & appraisal of
the human & material resource capabilities of Nigeria for efficient and
effective utilization;
·
Formulate and prepare short, medium & long
term development plans and coordinate their implementation at the three tiers
of government;
·
Monitor projects and progress relating to plan
implementation;
·
Conduct research into various aspects of national
interest and public policy with a view to foster sustainable economic
development of Nigeria;
·
Manage multilateral & bilateral economic
cooperation, including development aids, and technical assistance
programming; and
·
Deals with matters relating to regional economic
cooperation - ECOWAS, UNECA, South-South Cooperation etc.
|
·
Provision of information and technical advice on
macroeconomic indicators;
·
Provision of information on Government Policy
thrusts and priority sectors of the Nigerian economy;
·
Facilitation of registration of Non-profit making
International NGOs;
·
Facilitate the activities and operations of the
development partners in Nigeria such as EU, USAID, JICA, CIDA, DFID, UNICEF
etc; and
·
Follow-up action on other matters relating to NPC
mandates and functions at the Commission’s Headquarters in Abuja.
|
20
|
DEPARTMENT OF PETROLEUM RESOURCES
|
Established by the Petroleum Act 1969, the
Department of Petroleum Resources has the responsibility -
•
To regulate and
monitor Upstream and Downstream oil and gas activities in Nigeria, ensure
standards, compliance and best international industry practices.
•
To manage and
administer Nigeria’s oil and gas acreage and concessions.
•
To conserve the
nation’s hydrocarbon resources, and maximize returns on investment to
government.
•
To
determine/collect royalties and other Oil and Gas statutory fees, charges,
and penalties.
•
To serve as the
repository for archiving and retrieval of all oil and gas data in Nigeria.
•
To advise
government on the nation’s authentic oil and gas reserves, production and
export for planning and development purposes.
•
To ensure that oil
and gas activities are carried out in a safe and environmentally sustainable
manner.
•
To co-operate with
other agencies in ensuring that Oil and Gas operations in Nigeria have
linkages with the host communities, and meet local content aspirations of
government.
•
To follow best
practices in global HSE and environmental standards and adapt same to our
national circumstances.
•
To implement
government policies on Oil and Gas matters.
•
To grant necessary
/ relevant approvals, Licenses and Permits for operations and installations
in the Oil and Gas Industry.
|
· Provision of general Information/data on DPR
statutory mandate and the Oil and Gas Sector to facilitate informed
investment decisions.
· Facilitation and guidance to investors in the
issuance of various approvals/licenses granted by the DPR.
· Provision of general advisory services on the
investment opportunities in the Oil & Gas Sector, including matching
investors’ requirements with opportunities available in the Sector.
· Assisting investors through facilitation with relevant
stakeholders in the Oil & Gas industry on access to support in respect of
investment projects.
|
21
|
ODU’A INVESTMENT COMPANY LIMITED
|
Odu’a
Investment Company Limited was incorporated in July, 1976 to take over the
business interests of the former Western State of Nigeria now comprising Oyo,
Ogun, Ondo, Osun and Ekiti including Lagos State.
The
Company was established to promote the socio-economic and industrial growth
of the host States and create employment opportunities.
|
The
Desk serves as the information bank for investment opportunities in the 5
South-Western States, with a view to attract foreign / local investments into
the States including Lagos State.
Provision
of relevant investment data on security and incentives.
|
22
|
NEW NIGERIA DEVELOPMENT COMPANY (NNDC)
|
NNDC is a Development Finance Institution (DFI)
owned by the (19) states that constitute the Northern Region of Nigeria. The
company was established in 1949 to contribute to the Socio-Economic
development of the region.
|
Provision of general advisory services on
investment opportunities in Northern States, including matching investors
requirements
|
23
|
SOUTHEAST/SOUTH SOUTH REGIONAL DESK
|
The Southeast/South-south Regional Desk is an
innovation by NIPC at OSIC, established on march 16th, 2009 as
part of the Commission’s proactive strategy to facilitate and fast-tracking
inflow of foreign and local investment into the eleven(11) states of the
SE/SS regional block.
|
Provision of data on investment opportunities,
investment environment and incentives in the Southeast/South South Region of Nigeria.
The Desk also liaises, co-ordinates and maintains
necessary investment promotion and facilitation in collaboration with the
States.
|
24
|
PHARMACISTS COUNCIL OF NIGERIA (PCN)
|
PCN is the agency statutorily charged with the
responsibility for the regulation and control of the Practice of Pharmacy in
Nigeria.
|
·
Provision of
general Information/data on PCN statutory mandate and the Health Sector to
facilitate informed investment decisions.
·
Facilitation and
guidance to investors in the issuance of various approvals/licenses granted
by the PCN.
·
Provision of
general advisory services on the investment opportunities in the
Pharmaceutical Industry, including matching investors’ requirements with
opportunities available in the Sector.
·
Facilitation with
relevant stakeholders in the industry on access to support in respect of
investment projects on behalf of investors.
|
25
|
NIGERIAN COPRYRIGHT COMMISSION (NCC)
|
NCC is the Anti-Piracy and Enforcement agency for
Intellectual Properties in Nigeria.
The agency plays an important role in the
maintenance of effective databank of authors, their works and the monitoring
of the copyright Industry.
|
· Provision of general Information/data on the
Agency’s statutory mandate and the Copyright Industry to facilitate informed
investment decisions.
· Facilitation and guidance to Investors in the
issuance of various approvals/licenses granted by the NCC.
· Provision of general advisory services on the
general requirements in the Copyright Industry.
· Facilitation with relevant stakeholders in the
Copyright industry on access to support in respect of investment projects on
behalf of investors.
|
26
|
MANUFACTURERS ASSOCIATION OF NIGERIA (MAN)
|
MAN is the focal point of communication and
consultation between industry on one hand and the Government and the general
public on the other hand.
MAN plays a strategic role in Nigeria and has
contributed immensely to Government Policy formulation through constructive
recommendations and view points.
It has
provided manufacturers with the means of formulating and influencing general
policies with regard to industrial, labour, social, legal, training, and
technical matters in the overall interest of stakeholders.
|
· Provision of general information/data based on
the objectives/mandate of MAN to facilitate informed investment decisions.
· Facilitation and guidance to investors on
membership registration.
· Provision of general advisory services on the
investment opportunities in the Manufacturing Sector, including matching
investors’ requirements with opportunities available in the Sector.
· Facilitation with relevant stakeholders in the
Manufacturing industry on access to support in respect of investment projects
on behalf of investors.
|
No comments:
Post a Comment