Foreign investors have a great opportunity to participate in the growth of the Nigerian economy. Whether you are an individual or a foreign company, investing in Nigeria can be highly profitable. However, it is essential to follow the legal steps to avoid any issues with law enforcement.
The first and most important step is to register your business with the Corporate Affairs Commission (CAC). Operating in Nigeria without registering is illegal and could result in fines. However, registration does not prevent you from protecting your rights or being held accountable under Nigerian law.
Steps for Foreign Investors to Start Business in Nigeria
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Register with CAC:
The foreign investor must engage a corporate lawyer in Nigeria and provide essential details such as the company name, business objectives, share capital (which must be 100 million and above), shareholder IDs, and a proposed registered address. -
Name Reservation:
The lawyer will check the availability of the company name and reserve it with the CAC. -
Submit Documents:
All necessary information and documents are submitted via the CAC’s online portal, along with payment of filing fees and stamp duties. -
Certificate of Incorporation:
Once the process is completed, a Certificate of Incorporation is issued as evidence that your business is officially registered.
Next Step: Register with the Nigerian Investment Promotion Commission (NIPC)
After receiving your Certificate of Incorporation, the next critical step is to register with the Nigerian Investment Promotion Commission (NIPC). This is mandatory for all foreign-owned businesses operating in Nigeria, except for those involved in activities on the “negative list” as defined by the NIPC Act.
The NIPC registration is essential for the government to maintain a record of foreign investments and offer a harmonised tax incentive system.
How to Register with NIPC
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Obtain NIPC Form 1:
Your lawyer will visit the NIPC online platform or office to download or collect Form 1. -
Complete the Form:
The form must be filled out and submitted along with the following documents:- Memorandum & Articles of Association
- Certificate of Incorporation from the CAC
- CAC Status report, Form 1.1 (or CO2 and CO7 for older companies)
- Power of Attorney or Letter of Authority (if applicable)
- Payment receipt of N15,000 for processing fees via Remita.
Once the application is approved, your company is officially registered with the NIPC, allowing you to operate legally and benefit from available incentives.
Conclusion
Investing in Nigeria offers significant opportunities due to its abundant natural and human resources. Whether you are interested in agriculture, manufacturing, oil and gas, or other sectors, the labour and resources are available to help you maximise profits.
Remember, “Investment is an asset purchased with the hope that it will generate income or appreciate in the future.” Following the legal steps with CAC and NIPC is the first move toward a successful investment in Nigeria.
For more information on the above topic, please call 08180524686 or send an email to info@ica.ng
