How a foreigner can obtain a Business permit in Nigeria

How a foreigner can obtain a Business permit in Nigeria

January 31, 2020

The law is trite that no foreigner can engage in business in Nigeria without a business permit except those expressly exempted by the Companies and Allied Matters Act Cap C20 LFN 2004. As such, a registered company wholly owned by foreigners is required to obtain a business permit from the Ministry of Interior before it can commence business operation in Nigeria. Pursuant to Section 36 of the Immigration Act, no person other than a Nigerian citizen shall, on his own account or in partnership with any other person, practice a profession or establish or take over any trade or business whatsoever or register or take over any company with limited liability for any purpose without the written consent of the Minister of Internal Affairs. The consent of the Minister of Internal Affairs is issued in the form of a Business Permit.

The application for a business permit in Nigeria must be accompanied with the following:

  • Completed NIPC Form I (3 copies) submitted with the original copy of the treasury receipt (3 copies).
  • Copy of the company’s Certificate of Incorporation.
  • Tax clearance certificate of the registered company
  • Details of the shareholding structure of the joint venture (3 copies).
  • Joint venture Agreement where applicable (3 copies).
  • Certified True Copy of the company’s Memorandum and Articles of Association (3 copies).
  • Certified True Copies of CAC Form 2 & 7 (i.e. Particulars of Shareholders and Directors) duly certified.
  • Evidence of capital importation for wholly foreign companies.
  • Approval from the appropriate professional bodies where applicable.
  • A Copy of Feasibility Report and Project Implementation Programme (Business Plan)
  • A copy of Deed of Sub-Lease/Agreement evidencing firm commitment to acquire requisite business premises for the company’s operation;
  • Profile of Foreign Investor as a testimony of international expertise and credibility of the foreign partner in the proposed line of business.

NOTE: A business permit is only required where the company is entirely owned by the foreigners or where an international entity is engaging in a joint venture with a Nigerian Corporation. Citizen participation in any company may eradicate the need for the business permit. Also note that, obtaining a business permit in Nigeria could take anywhere from 6 to 8 weeks for a foreigner.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

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Frequently Asked

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

  • What is an execution clause in a contract?

    This is the section in which the parties sign the contract or agreement.

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • What is classified as personal data?

    Name, photograph, personal health/bio information, account/financial information, phone number, Address, date of birth, place of birth, Email address, etc.

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    However, when the copies are large, you must seek permission from the copyright owner.

  • Do I have to physically drop off my product sample at NAFDAC office?

    No, you can choose to have it sent to NAFDAC office

  • How many shareholders do I need to start a company?

    A minimum of one (1) adult shareholder is required to form a company.

  • Will my trademark registration in Nigeria protect me worldwide?

    No, all intellectual property (IP) rights which includes trademarks are territorial, which means you are protected in the countries in which you register them.

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