Nigeria has become a global corporate coalition of various companies operating businesses and growing inside the Nigerian market, thereby building a diversified economy, where these companies have an inherent intangible value towards the development of Nigerian industry, creating corporate congestion and the influence and motivation of aspiring new entrepreneurs to start businesses in Nigeria. New companies are storming Nigeria’s business markets such as drift racing cars on Rally tracks.
The central ideology behind this is that since Nigeria slid in 2016 because of its unprecedented share of industrial problems, the government has been working to ensure a secret recovery in the economy. So as the economy is in the recovery phase and the government is making infrastructure investment, most companies called for the right time to start a business in Nigeria and saw factors that also simplified market penetration.
Why is Nigeria a healthy investment for foreigners?
1. Legal Protection Structure
A few months ago, on January 17, 2019, the House of Representatives passed the Bill on Trade and Allied Issues (Repeal and Recreation). And only for the flow of information, legal documents were previously passed by the Senate on May 15, 2018. This document contains some relevant provisions in the text of Nigerian corporation law. The newly drafted bill includes a necessary legal amendment that would allow Nigeria to enter and exit the business market to simplify the doors of foreign investors. Therefore, investors cannot be concerned about the procedures for establishing the insu-1979 or the influence of the company’s market, or in any case, the company’s evaluation and envelope procedures.
2. Emerging Sectors
Nigeria has a history of being defined as a fuel-dominated economy, the second-largest fuel reserves within the country’s borders. But today the new business sectors are on the rise and the consumer market is willing to accept start-ups that simplify their lifestyle through various products and services. New launches are creating a corporate vision to respond to Nigeria’s vast consumer needs
- Oil & Gas
- Development of construction infrastructure
Retail Building Materials
- Fruit packed drinks
3. Network Ease
The market has become an ecosystem of companies that partner to ensure combined industrial growth. This development has had a significant impact on the networking habits of many businesses in different business areas. Create a fiduciative foundation for partnerships, joint ventures and bulk investments in startups. Network facilities are a reducing factor for foreign companies’ entry and interaction with numerous companies and active growth into a variety of developing countries.
4. Incentives for foreigners
The government provides long-term incentives for foreign businesses and entrepreneurs to promote their operations in Nigeria in the short term and with specific legislative incentives.
- Quick steps for your business up and running
- Flexible immigration and business license
- Structured legal process for return on capital and interests
- Foreigners may own 100% of the shares in any limited liability company, except for some of the centrally specified businesses that significantly include the government.
Companies registered in Nigeria
- You need to specify the name of the company and then check if it is available in the Company Affairs Committee Registry (CAC).
The next step involves filling out CAC Form 1.1, which gives business owners the power to provide information about the company’s internal information including the status of authorized share capital and details of directors and shareholders.
- Establishing the Memorandum of Understanding (MOA) and Articles Association (AOA) Association, including the following objectives of the Company, and creating measures issued for each director: This document shall be formally signed by a witness who is the Secretary of the Company, who is the company’s legal representative.
- Payment of required or initial amount shall be made to the ACC as a registration fee and stamp duty, based on the volume of share capital, based on the type of commitment/operating body.
- Forms CAC 1.1 and MOA and AOA shall have official seals signed by CAC directors, shareholders, witnesses and authorized agents.
- The documents obtained after the completion of the procedures must be posted online in the following ways:
- Form CAC 1.1 properly filled
Second. MOA and AOA of the Company
iii. CAC name availability of notifications
- Proof of all stakeholders
- Details of the lawyer/secretary of the company
- CAC cac receipt to pay registration fees
The procedures for analyzing the legitimacy of the document and formal review are comprehensive. So it can take up to 3 days. Once approved, CAC will notify you along with your company’s RC number. Until confirmation is received, the owner can start a business in Nigeria. However, they are still required to register to pay taxes through the company’s secretary in accordance with Nigeria’s tax system.
Now that you have all the information to start a business in Nigeria, you are somewhat ready to enter the Nigerian market, recognizing that while your business ideas may juggernaut for future business, the cumbersome process of starting a business can be a major obstacle. We will assist you in the process of establishing the company and post-establishment services. Our network and experience allows us to set up our business with all the necessary licenses and records that take time step by step for individual business owners. Contact us to learn more about how to make it easier to set up your business in Nigeria.