The Corporate Transparency Act of 2021 in the United States mandates that both local and foreign entities must disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the US Department of the Treasury. This compliance requirement forms a part of the U.S. government’s efforts to make it more challenging for dishonest individuals to conceal or profit from their illegally obtained funds through shell companies or other unclear ownership structures. This article will address frequently asked questions about Beneficial Ownership Information reporting as a compliance requirement for US companies WHAT IS BENEFICIAL OWNERSHIP...

The Central Bank of Nigeria (CBN) released revised guidelines for International Money Transfer Services in Nigeria on January 31, 2024. The guidelines are aimed at liberalizing the foreign exchange market, ensuring transparency in foreign exchange transactions, boosting diaspora remittances and foreign capital inflows, promoting efficient price discovery mechanisms, and improving the ease of doing business for International Money Transfer Operators. This article aims to examine the key changes that have been made to the pre-existing guidelines and their implications for stakeholders in the sector. KEY HIGHLIGHTS OF THE REVISED GUIDELINES 1. Minimum Share Capital Requirement: The Central Bank of Nigeria...

To register a company limited by guarantee in Nigeria, there is a mandatory requirement to obtain the authority of the Attorney General of the Federation, as per Section 26(4) of the Companies and Allied Matters Act (CAMA) 2020. To reduce delays in the registration process, the CAMA has provided a 30-day timeframe for the Attorney General to grant the necessary authority for the registration of a company limited by guarantee, if there are no valid reasons for failing to approve the application. In order to improve the efficiency of the registration process, the Guidelines for the Issuance of the Attorney...

Just like a natural person is birthed, journeys through the process of life, and dies, so does a business organization undergo a compelling journey from inception, and sometimes the decision to shut down or cease its operations becomes inevitable. In Nigeria, there are laid down rules and laws governing the operations of business organizations (companies, business names, and non-profit organizations) and this extends to its closure stage. The primary laws that oversee the end of a company are the Companies and Allied Matters Act, 2020, and the Insolvency Regulation 2022. This article seeks to examine the legal intricacies and processes...

Like starting your business in the United States, closing a company in the USA (particularly as a foreigner) can be an emotional one. However, no matter the reason behind the decision to close your business, please take note that doing so is not limited to stopping business activities. There are other legal and tax procedures to follow while doing so. This process is also known as dissolving a company. In this article, we will be considering what you need to know about how to close a company in the USA and we will be considering it from both the legal...

Following the directive restricting banks and other financial service providers from operating accounts for cryptocurrency service providers in 2021, the Central Bank of Nigeria on 22 December 2023, issued guidelines on the operation of bank accounts of firms transacting in crypto assets and cryptocurrency (also referred to as Virtual Asset Service Providers (VASPs). Within this context, VASPs are defined as entities that conduct the following activities for and on behalf of the following persons; a. exchange between virtual assets and flat currencies b. exchange between one or more forms of virtual assets c. transfer of virtual assets d. safekeeping and/or...

WHAT IS TAX PRO-MAX Taxpromax is one of the newest innovations of the Federal Inland Revenue Service (FIRS) launched to simplify tax compliance and to enhance a digital tax administration process in Nigeria.  Taxpromax is a self-service platform or portal that enables taxpayers to file tax returns, pay taxes, process and validate Tax Clearance Certificates, etc. WHEN DO I NEED TO REGISTER ON THE TAX PRO-MAX PORTAL? At the time of this publishing article, all registered companies in Nigeria are required to be enrolled on the Taxpromax portal after obtaining the company’s tax identification number with the Federal Inland Revenue...

A church is a religious organization comprising a group of people who together share the same belief. To operate and function as a legally recognized institution, a church must be registered. To register a church in Nigeria, it is hereby advised to get registered as an “Incorporated Trustee” because it falls under a non-profit organization. BENEFITS OF REGISTERING A CHURCH IN NIGERIA It is necessary to register a church because of the privileges that come with it, some of which are: 1. Legal Personality: When a church is registered it becomes a corporate body and a person in law separate...

Withholding tax (WHT) was introduced into the Nigerian Tax system to reduce and possibly terminate the incidents of tax evasion. In this article, we examine frequently asked questions on the subject such as; what is withholding tax in Nigeria, who pays withholding tax in Nigeria, how it works within the Nigerian tax administrative system, exemptions, etc WHAT IS WITHHOLDING TAX IN NIGERIA? This is a method used to collect income tax in advance and is often used to offset tax liabilities. It is not a type of tax, but an advanced income tax payment system processed on certain transactions as...

The Nigeria Startup Support and Engagement Portal (also referred to as “the Startup Portal”)  is an offshoot of the Nigeria Startup Act of 2022, this Act was set up to provide or create a thriving and enabling environment for technology-enabled startups in Nigeria to position Nigeria’s startup ecosystem as the leading digital technology center in Africa. The portal was established by Section 10 of the Nigeria Startup Act to serve as a platform through which startups register with all relevant MDAs (Ministries, Departments, and Agencies) after being registered with the CAC (Corporate Affairs Commission). It is designed as a one-stop...