Company Incorporation in Nigeria

Nigeria, an African country on the Gulf of Guinea. Nigeria is a gateway to Africa because it currently has the largest economy in Africa. The abundant oil reserves and huge human resources have the country a destination of choice for the global investing community. The country has bilateral investment treaties with multiple lucrative countries. Setting up a company in Nigeria is inexpensive compared to the cost of establishing a company in another jurisdiction. The first and most important reason why people incorporate in Nigeria is for the something named Corporate Personality. Under Nigerian Law, the company has powers to enter into contracts, buy property, own property, etc. The legal implication of this is that if the company for instance owes a bank N10 Million, it is the company that owes the bank and not the Directors unless the Director(s) gave personal guarantees for the loan. Under Nigerian Tax Law, registered businesses, do not pay companies tax, they pay personal income tax to the Inland Revenue Services (FIRS).  It is also worth noting that most benefits and expenses are taxable, however in a registered company in Nigeria, you could legally offset certain costs that would have been taxable as a benefit under personal income tax.

Requirements for the incorporation will include incorporation certificate and documents, valid mode of identification, account opening package duly completed and signed, company’s board resolution authorizing an account to be opened, Tax Identification Number (TIN), and Bank Verification Number (BVN).

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