How To Set Up A Company In Nigeria

You need to set up your company in Nigeria? Here is a little guide to take you through.

1. First, you have to conceptualize the name of the company. Something that is worth remembering and can drive market awareness.  Including the name the Nigeria Limited. You have to apply to Corporate Affairs Commission, search for the company’s name availability and make a reservation of Name.
2. Next, hire a lawyer to incorporate the company, statutory fees are approximately N 27,000 and many good lawyers charge about N 35,000 in professional fees. The process of incorporation usually takes 2 weeks.
3. Working the Draft for the Memorandum and Articles of Association.  It should be reflective of the parent company as the Nigerian law demands.
4. You have to agree on and structure the share capital structure for your new company. Your company can be 100% foreign owned but it will be politically astute to have some Nigerians on board.
5.  It is required that Stamp duty be paid in respect of the share capital. This amount takes into account the share capital that has been agreed upon.
6. The laws of the state of Nigerian demand you provide at least two persons who must sign a memorandum of understanding and articles while it is expected that twenty five percent (25%) of the share be allotted upon incorporation.
7. The expected fees to be paid are specified in by CAC for matters under the Act are as specified in Companies and Allied Matters (Fees) Regulations 2003. The Minister of Commerce exercise the powers to makes the regulations decision based on sections 16, 632, 668, and 692 of the Companies and Allied Matters Act and all other powers enabling the Minister in that behalf. He/she can make any altercation at any time and it will be published in the official gazette.
8. You must stamp both articles and memorandum of association before presentation to to CAC for filling. This Stamp Duty is Chargeable by the Federal Inland Revenue Service (FIRS) and is assessed on behalf of the FIRS by the Federal Commissioner of Stamp Duties according to a scale fixed by the Joint Tax Board.
9. Payments are all done in the currency of Nigeria and its currency is depicted as NGN.
10. Fees paid to lawyers could vary with the states but are for professional services rendered.
11. Cost for incorporating are broken down as Filling fees, Fess for Availability and Reservation of Name, procurement of Incorporation Forms,  and costs of engrossment (printing) of the articles and memorandum of association documents.