How to Register Your Business in Nigeria as a Foreigner

To register your business in Nigeria as a foreigner, you’ll need to follow a series of steps managed by the Corporate Affairs Commission (CAC), which is the agency responsible for business registration in Nigeria.

They make sure you follow all the rules needed to legally open and run your business there. It’s important to understand and follow these steps carefully to ensure your business operates without any legal issues.

Here’s a simplified breakdown of the process:

Foreigners looking to register a company in Nigeria must meet specific requirements:

Minimum Share Capital: A foreign-owned company must have at least ₦100 million in share capital.

Local Directors: At least one local director must be appointed to the company.

Business Permit: Obtaining a business permit from the Nigerian Investment Promotion Commission (NIPC) is necessary.

Expatriate Quota: Foreigners should apply for an expatriate quota, which authorizes non-Nigerians to work within the company.

Step-by-Step Registration Guide:

Choose a Company Name: Your first step is to pick a unique name that isn’t already in use.

Determine Your Company Structure: Most foreign businesses in Nigeria are registered as Private Limited Companies. However, depending on your business type, other structures might be more suitable.

Prepare the Necessary Documents: This includes details such as the proposed company name, local business address, nature of the business, and names and details of the directors, shareholders, and company secretary.

Get a Tax Identification Number: All companies in Nigeria need to be registered for tax purposes.

Open a Nigerian Bank Account: You’ll need a local bank account to handle financial transactions for your business.

Register with the Nigerian Investment Promotion Commission (NIPC): This is mandatory for foreign businesses to ensure you’re recognised as a legal entity capable of doing business in Nigeria.

Obtain Necessary Permits and Licenses: Depending on your business sector, certain permits and licenses will be required to legally operate in Nigeria.

Register for VAT: If your business activities are VAT-liable, registration is compulsory.