For foreigners looking to invest in Nigeria or Nigerians seeking to hire foreign experts, it is crucial to ensure that a business entity is registered with the Corporate Affairs Commission (CAC) as a Limited Liability Company (LTD).
Once the incorporation process with CAC is complete, there are additional steps that the foreigner or their prospective Nigerian employers must take to secure a residential address in Nigeria.
Below is a step-by-step guide, including the requirements and costs involved in processing an Expatriate Quota application, Subject to Regularization (STR) Visa, and Combined Expatriate Residence Permit and Alien Card (CERPAC).
STEP 1: Expatriate Quota
The first step for a wholly foreign-owned company, a joint venture company (between a Nigerian and a foreigner), or a Nigerian company wishing to employ a foreigner is to secure an official residence permit for the foreign employee. The following are the necessary steps:
- Application for Expatriate Quota Slot:
- The application must be on the company’s letterhead and addressed to the Permanent Secretary, Federal Ministry of Interior, Old Secretariat, Garki, Area 1, Abuja, FCT.
- It is important to note that only a company can apply for an expatriate quota. Individuals, whether Nigerian or foreign, are prohibited from such applications.
- Certificate of Incorporation:
- Issued by CAC upon completing the incorporation process, this certificate serves as prima facie evidence that the business entity has met the essential requirements before the issuance of an Expatriate Quota Slot(s) and a business permit.
- Status Report and Forms CAC 2 and 7 or 1.1:
- These forms establish company details related to the composition of the Board of Directors, shareholders, the shareholding structure, the registered office address, and company secretarial details.
- Memorandum and Articles of Association:
- This document is crucial as it confirms the nature of the company’s business in relation to the expatriate’s job title.
- Feasibility Report:
- Required by the Ministry to assess the viability and practicality of the applicant’s projects.
- Tax Clearance Certificate:
- This official document from the Federal Inland Revenue Services (FIRS) verifies that the company has paid all assessed taxes.
- Bank Reference Letter:
- Demonstrates the company’s banking relationship with credible banks in Nigeria and confirms that the company has not defaulted on any mutually negotiated terms.
- Lease Agreement:
- Confirms the applicant’s right to use a property, establishing title to a property for business use.
- Joint Venture Agreement (if applicable):
- Required in the case of a foreign partnership.
- Evidence of Capital and Machinery Importation:
- A Certificate of Capital Importation issued by Nigerian banks on the mandate of the Central Bank of Nigeria (CBN) is necessary. It proves that the company has imported foreign currency for business purposes in Nigeria and aids the repatriation of dividends and profits by the foreign investor. Additionally, if machinery is being imported, due process laid down by the Standard Organisation of Nigeria (SON) and Nigerian Custom Services (NCS) must be strictly followed.
- Proposed Salary, Job Description, Designation, and Qualification of Expatriates:
- These details are essential for the application process.
| FEES: | N | |
| 1 | Online registration/Automation | 100, 000 |
| 2 | processing fee | 100,000 |
| 3 | Business Permit | 100,000 |
| 4 | Singe Quota position | 50,000 |
| 5 | Portal fee | 50,000 |
STEP 2: Subject to Regularization (STR) Visa
After obtaining an Expatriate Quota from the Minister of Interior, the next step is to apply for a Subject to Regularization (STR) Visa at the Nigerian embassy in the expatriate’s country of origin, where they have resided for the past six months.
Requirements for STR Visa Processing:
- A valid passport with at least 6 months of validity.
- A letter of employment from the Nigerian employer.
- Expatriate Quota approval issued by the Minister of Interior.
- The expatriate’s credentials/CV.
- For the CEO position, evidence of the extract of the minutes of the Board of Directors must be attached.
- Proof of online payment of the visa fee.
Fee: ₦120,000
STEP 3: CERPAC (Residence Permit Application)
After the STR Visa is granted, the expatriate can travel to Nigeria and regularise the visa with the following documents and fees:
Requirements for CERPAC:
- Purchase of CR (Concessionary) Forms.
- Four (4) passport-sized photographs (2×2) on a white background.
- An application letter on the employer’s letterhead, indicating acceptance of Immigration Responsibilities (I.R.) endorsed by the Nigerian High Commissioner.
- The expatriate’s national passport with the STR Visa endorsement and photocopies of relevant data pages.
- Letter of appointment and acceptance of the offer by the expatriate.
- Expatriate Quota approval issued by the Minister of Interior.
- Photocopies of the expatriate’s credentials.
- Duly completed forms IMMA 2.1 and E.20.
- Particulars of incorporation documents as required for the Expatriate Quota application.
- Qualifying certificate and resume of the expatriate.
- Company profile of the applicant.
Fees:
- CERPAC fee: $2,000 per expatriate. (This new rate was introduced by the Minister of Interior in 2018).
Duration: After submitting the application, a temporary card valid for one year will be issued while the permanent card is being processed (usually within 2-3 months).
The application must be submitted at the office of the Comptroller-General of Immigration (Immigration HQ, Airport Road, Sauka, Abuja). The presence of the expatriate is required.
The expatriate can travel in and out of Nigeria using the temporary card until the original card is ready for pick-up.
Okpi, Ibe Chinedu is the Principal partner in the Law Firm of Ibe, Chido, and Associates (www.ica.ng), with extensive knowledge in Corporate and Commercial Law Practice. He can be contacted via phone: 08180524686 or email: info@ica.ng
