Obtaining a Business Permit in Nigeria

In Nigeria, A business permit is an approval given by the government, which authorizes the operation of a business by a foreigner or foreign entity in Nigeria. A business permit is issued through the Department of Citizenship and Business, Ministry of Interior to the foreign individual or organization. A business permit allows foreigners to commence business legally in Nigeria. However, it doesn’t remove the need for foreign individuals and employees to obtain a residential permit. Without the Combined Expatriate Residential Permit and Alien Card (CERPAC), a foreign individual cannot live in Nigeria and hence cannot work here. The residential permit is usually obtained simultaneously with the business permit since it is also issued by the Ministry of Interior in Nigeria. The focus of this article will however be on obtaining a business permit in Nigeria.  

Before a foreign-owned company applies or obtains a business permit, there are a few prerequisites that must first be obtained. The company must first register with the Corporate Affairs Commission (CAC) and the Nigerian Investment Promotion Commission (NIPC). Without registering with these bodies, you cannot obtain a Business permit in Nigeria. The Corporate Affairs Commission (CAC) is responsible for regulating, supervising, and incorporating all companies in Nigeria. The Nigerian Investment Promotion Commission (NIPC) on the other hand is responsible for monitoring and promoting foreign participation and investment in business sectors in Nigeria.

Registration with CAC

As a foreigner or foreign organization seeking to obtain a business permit in Nigeria, you must first register your business with the Corporate Affairs Commission (CAC). The CAC is in charge of regulating the formation and incorporation of companies in Nigeria. Without registering with them, you do not have a legal business in Nigeria that you can obtain a business permit for. In registering with the CAC, as a foreign company or business, you must first have a minimum share capital of ten million nairas (N10,000,000). Here are other requirements needed in registering with the CAC.

(i.) Particulars of the Company – (name of the business, office address, and email address)

(ii.) Particulars of the two Directors (Name, Date of Birth, Phone number Email address and means of verification)

(iii.) Particulars of two shareholders (Name, Date of Birth, Phone number Email address and means of verification)

(iv.) Particulars of Company Secretary

(v.) Statutory Declaration of compliance with the requirements of CAMA by a Lawyer or law firm

(vi.) Particulars of alien participants, if any

(vii.) Registration Fee

(viii.) Proficiency Certificate (this is required for certain sectors)

After registering a certificate of incorporation will be issued to you. Robert Inoma & Co. can assist you in the application and obtainment of your CAC certificate.

Registration with NIPC

The National Investment Promotion Commission (NIPC) is responsible for the coordination and promotion of investment in Nigeria. As a foreign company, it is mandatory that you register with the NIPC before a business permit can be issued. In registering with the NIPC, the following documents are needed.

(i) Duly completed NIPC BRC Form I;

(ii) Certificate of Incorporation;

(iii) Memorandum & Articles of Association;

(iv) CAC Form 1.1 (or CAC Forms CO2 and CO7 for old companies);

(v) Power of Attorney/ Letter of Authority

(vi) Evidence of Payment of Processing fee of N15,000

You can also register with the NIPC through legal practitioners like Robert Inoma & Co. After registering, a Certificate of Registration of Business with Foreign Participation will be issued to your company.

Registration for Business Permit

Obtaining a business permit is mandatory before carrying out any business in Nigeria. There are a few requirements needed in obtaining a business permit in Nigeria. These documents must be provided when registering for a business permit

(i) Completed NIPC Form I (3 copies) submitted with the original copy of the treasury receipt (3 copies).

(ii) Copy of the Certificate of Incorporation.

(iii) Joint venture Agreement where applicable (3 copies).

(iv) Certified True Copies of Memorandum and Articles of Association (3 copies).

(v) A Copy of Feasibility Report and Project Implementation Programme (Business Plan)

(vi) Profile of Foreign Investor as a testimony of international expertise and credibility of the foreign partner in the proposed line of business.

(vii) Certified True Copies of CAC Form 02 & 07 (i.e. Particulars of Shareholders and Directors) duly certified.

(viii) Evidence of capital importation for wholly foreign companies.

(ix) A copy of Deed of Sub-Lease/Agreement evidencing firm commitment to acquire requisite business premises for the company’s operation

(x) Tax clearance certificate of the registered company

(xi) Details of the shareholding structure of the joint venture (3 copies).

(xii) Approval from the appropriate professional bodies where applicable.

Before you can obtain a business permit in Nigeria, these requirements must be provided. Registration for a business permit can be done through a legal practitioner such as Robert Inoma & Co. After the business permit is issued, the foreign entity can legally begin a business in Nigeria.

Both the business permit and CERPAC are required from foreign individuals. This is to ensure that foreign companies are not edging out Nigerian organizations with businesses that domestic companies already engage in, and hence put Nigerian citizens out of employment. The CERPAC and business permits are usually obtained together from the same Ministry of Interior in Nigeria.

A business permit is only required when the company is owned and controlled entirely by a foreign individual(s), or where a foreign entity engages in a joint venture with a Nigerian organization. In a case where a Nigerian Citizen partially owns the organization, a business permit will not be needed.

A business permit is usually mistaken for a business license but they are entirely different. While a business permit allows you to operate in Nigeria, you may also need a business license for certain sectors in Nigeria. If you’re seeking to do business in certain sectors you may need to obtain both a business permit and a business license (in that sector) before you can legally commence operation. Such sectors include mineral resources, petroleum, financial sector, and others. Before you can commence operation in such sectors you will need a license from the regulatory body of such sectors in Nigeria.

Conclusion

In Nigeria, no foreign entity can commence business without a business permit. The business permit is obtained from the Ministry of Interiors. Before a business permit can be obtained, you must first register with the Corporate Affairs Commission (CAC), and the National Investment Promotion Commission (NIPC), and also meet certain other requirements. Having a business permit may not be enough if you are doing business in certain sectors in the Nigerian economy. For sectors such as minerals, petroleum, and finance, you may also need to obtain a business license from the relevant bodies before you can begin operation. Robert Inoma & Co is an accredited law firm with decades of experience and exceptional lawyers to help you in getting incorporated and meeting all legal requirements in doing business in Nigeria. Contact us today to get started.