Nigeria operates a free market economy that welcomes both local and foreign businesses to invest in its vibrant economy. This proactive approach is reflected in the establishment of legal frameworks and policies designed to promote foreign direct investment and foreign portfolio investment. Consequently, foreigners interested in conducting business in Nigeria can apply for a business permit. This article aims to provide detailed information on how to obtain a business permit in Nigeria.
What is the purpose of having a business permit?
According to the Immigration Act, foreign nationals or non-Nigerians participating in business activities in Nigeria must obtain consent from the Ministry of Interior before starting their operations. This legal permit allows foreign-owned companies to operate legally in Nigeria and must be acquired prior to commencing any business activity. The permit is necessary for both wholly foreign-owned companies and local businesses that include foreign participation. In summary, foreigners seeking to own or engage in businesses in Nigeria are required to obtain a business permit to operate legally in the country.
Which agency issues business permits in Nigeria?
Currently, the Ministry of Interior is the agency that issues permits such as the expatriate quota and business permit to companies with foreign participation through its Citizenship and Business Department.
What are the requirements and procedure for obtaining a business permit?
Before applying for a Business Permit, foreign-owned companies or a company with foreign participation must be incorporated with the Corporate Affairs Commission with a minimum share capital of N100,000,000.
Application Process and Documents Required
Application for a business permit is submitted via the platform of the Ministry of Interior (Citizenship & Business Department).[1] Where there are changes to the company’s board, business line, location, etc., amendment of the Business Permit is required. The cost for obtaining a business permit is N1,500,000, excluding other charges for processing the application. The following documents are to be accompanied with the application:
- Certificate of Incorporation of your company issued by the Corporate Affairs Commission;
- Memorandum and Articles of Association of the company;
- Feasibility Report. This should be certified or registered with the Corporate Affairs Commission.
- CAC Form C02 & C07 OR CAC 2.2, CAC 2.3 & CAC 2.5 or CAC 1.1. Generally, the CAC Form 1.1–the E-Status Report–covers all the information in the other forms if you have it, so that alone can suffice.
- Joint Venture Agreement if it is a partnership venture between Nigerians and Foreigners. The original of the Joint Venture Agreement will be presented for sighting.
- Tax Clearance Certificate.
- Lease Agreement or Certificate of Occupancy for operating premises.
- Evidence of capital importation through authorized dealers
Conclusion
One of the ways you can do business in Nigeria legally as a foreigner is to obtain a business permit. This is only one out of the numerous licenses and permits you must obtain as a foreign owned company or joint venture. It is important that you engage the services of an expert preferably a legal practitioner to assist you in navigating the legal compliance and paper work.
Need professional services to obtain your business permit? You may send a request through our contact form here or send a message via our WhatsApp channel on this page, and we’ll attend to you.
[1] https://candb.interior.gov.ng/business/auth/login
