The Nigerian Business Permits and Licenses, State RegulationsAbbakin
To operate businesses legally in Nigeria, every Nigerian and foreigner must be licensed to carry on businesses, including obtaining the Nigerian Business Permits and Licenses.
Irrespective of the nature and location of your business, you need the business permits. For example, a home business will need an online business license as this in same cases is similar to having a physical office location.
This article will discuss the key Nigerian Business Permits and Licenses required for both local and foreign participation in the Nigerian Business Environment.
Note, depending on the type of business and its activities, you may need to be licensed at the local, state and federal government levels.
Most states in Nigeria have different requirements for different business structures, and there could be different requirements at the municipal level as well.
As a Nigerian business person or intending foreigner who want to invest in Nigeria business economy, below are some of the laws that may affect you.
The Nigerian Business Permits and Licenses
What is a Business License?
Business license is a permit issued by government agencies which allow individuals or companies to conduct business within the government’s geographical jurisdiction.
Business license is the authorization to start a business or participate in a particular industry issued by the local government where you resides.
A business permit is therefore a formal document that allows for the local operation of a business; especially operators with foreign interest.
Most of the Nigerian business permits and licenses are issued by the Federal Ministry of Interior on behalf of the Federal Government of Nigeria.
However there are other agencies of government who are saddled with similar responsibilities in their field. Some of the requirements for obtaining Nigeria Business Permits and Licenses are listed below to include:
Requirements for Obtaining Nigeria Business Permits and Licenses
- Certificate of Incorporation of the applicant company;
- Copies of the Tax Clearance Certificate of the applicant company;
- Copies of the Memorandum and Articles of Association;
- CAC Forms CO2 and CO7
- Joint Venture/Partnership Agreement (where applicable).
- The shareholding of the Company.
Notwithstanding the above, there are several numbers of industry laws and regulations that are applicable to business investments in Nigeria.
Some Laws That May Affect Nigerian Businesses Includes:
- The Custom Duty Act
- Factory Act
- Health Care Act
- Trademark Act
- Nigerian Standard Organization Act
- Companies Income Tax Act
- Nigerian Enterprises Promotion Act
- The Nigeria local content act
- Central Bank of Nigeria Monetary Policy, etc
The Federal Inland Revenue Services (FIRS) and your local/state revenue agencies will also need to be notified of your business operations.
The federal and state ministries of industries are the custodians of all the laws and regulations governing investments in Nigeria as a country.
As you choose your business structure and decide on which area to invest, understand that the state and industry you’re in may differ and it’s your duty to do the research and find out what is applicable to your environments and situations.
In addition to ensuring that your business entity is legally registered in Nigeria with the Corporate Affairs Commission (CAC), you may also need specific business permits and licenses.
If your are a foreigner or just starting out, you may require the services of an attorney or business professional who will be able to help with further requirements for Nigeria Business Permits and Licenses, such as those listed below.
Other Requirements for Nigeria Business Permits and Licenses.
- Information concerning particular labour laws,
- Illegal aliens,
- Temporary work permit
- Workplace safety rules,
- Expatriate quota
- Residence permit
- Certificate of capital importation (CCI)
- Filing employment and income tax returns,
- Building codes, contract holding
- Health department requirements,
- environmental laws, etc.
For foreigners or non Nigerian companies;
Remember to register at the Nigerian Investment Promotion Council (NIPC), a body set up by the Federal Government to promote and monitor foreign investments in Nigeria.
The NIPC registration requires some documentation, such as data about of the company and the founders, tax fillings and banking details.
To employ foreign experts, Expatriate Quota are granted to a company registered with the Corporate Affairs Commission and not to individual employees.
It is in your best interest to consult with professionals to determine which laws or regulations will be applicable to you; what permits or licenses you will need to stay, work and start your business in Nigeria;
Including where to go to apply for some of these various laws.
Subscribe to our Newsletters now if you want to receive latest updates about innovation, business trends and marketing related topics. You’ll get a free eBook!