Published
Sep 4, 2023
Updates:
Sep 16, 2024
Nigeria
Price:
Delivery:
Legal forms:
Payment methods:
6 weeks
LTD, PLC, LLC
Document checklist:
1.Passport
2.Proof of Residence
Requirements:
Local legal address (Handled by B2B Hub)
Nigeria
$
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Location
Capital
Official languages
Population
Currency
ISO 4217
Abuja
Nigeria
English
223,804,632
NGN
Naira
Delivery
-
Certificate of incorporation
-
Articles of association
-
Meeting minutes
-
Company stamp
Certificate of incorporation
Company stamp (By stempil.com)
Registration documents and guidance
FAQ for company formation in Nigeria
Q: What is the process for company formation in Nigeria?
A: The process for company formation in Nigeria involves obtaining necessary licenses and permits, registering the company with the Corporate Affairs Commission, obtaining a tax identification number, and registering for social security contributions.
Q: What are the requirements for company formation in Nigeria?
A: The requirements for company formation in Nigeria include a minimum of two shareholders and one director, a registered office address in Nigeria, and a minimum share capital of NGN 10,000 for a private company.
Q: What types of companies can be formed in Nigeria?
A: Companies that can be formed in Nigeria include private companies, public companies, and foreign companies.
Q: How long does it take to form a company in Nigeria?
A: The time it takes to form a company in Nigeria varies and can take up to several weeks, depending on the complexity of the registration process.
Q: What are the tax implications for companies in Nigeria?
A: Companies in Nigeria are subject to a corporate income tax rate of 30%.
Q: What is the legal system in Nigeria?
A: The legal system in Nigeria is based on English common law.
Q: What is the currency used in Nigeria?
A: The currency used in Nigeria is the Nigerian naira (NGN).
Q: Can foreign nationals own a company in Nigeria?
A: Yes, foreign nationals can own a company in Nigeria.
Q: Are there any specific regulations for foreign-owned companies in Nigeria?
A: Foreign-owned companies in Nigeria must comply with certain foreign investment regulations.
Q: What are the benefits of forming a company in Nigeria?
A: Some of the benefits of forming a company in Nigeria include a large and growing market, a strategic location in West Africa, and abundant natural resources. Additionally, Nigeria has recently implemented economic reforms to attract foreign investment, making it an attractive location for businesses.
"Nigeria is the largest economy in Africa, with a GDP of $397.3 billion in 2019. It is also the most populous country in Africa, with a population of over 200 million people. The country has seen steady economic growth over the past decade, with an average annual growth rate of 2.5%. The primary drivers of this growth have been the oil and gas sector, which accounts for about 90% of the country’s exports, and the services sector, which accounts for about 60% of the country’s GDP. The country has also seen an increase in foreign direct investment, with a total of $2.3 billion in 2019.
Nigeria has a large informal economy, which accounts for about 60% of the country’s GDP. This informal sector is largely driven by small-scale businesses, such as street vendors, small-scale farmers, and artisans. The country also has a large agricultural sector, which accounts for about 40% of the country’s GDP. The agricultural sector is largely driven by small-scale farmers, who produce a variety of crops, including cassava, maize, yams, and rice.
The country has seen an increase in poverty levels over the past decade, with an estimated 70% of the population living below the poverty line. The government has implemented a number of initiatives to reduce poverty, including the National Social Investment Program, which provides cash transfers to the poorest households.
Overall, Nigeria has seen steady economic growth over the past decade, driven by the oil and gas sector, the services sector, and foreign direct investment. The country has also seen an increase in poverty levels, but the government has implemented a number of initiatives to reduce poverty."
Taxation in Nigeria is governed by the Federal Inland Revenue Service (FIRS) for federal taxes and the various state revenue services for state taxes. The tax system in Nigeria includes various taxes, such as personal income tax, corporate income tax, value-added tax (VAT), withholding tax, and capital gains tax.
For personal income tax, residents of Nigeria are required to pay tax on their worldwide income, while non-residents are taxed only on their Nigerian-sourced income. The tax rates are progressive, ranging from 7% to 24% depending on the level of income. Employers are required to deduct and remit personal income tax on behalf of their employees.
For corporate income tax, the tax rate is 30% for resident companies and non-resident companies with a permanent establishment in Nigeria. Non-resident companies without a permanent establishment in Nigeria are subject to a final withholding tax of 10%. Companies are required to file their tax returns within six months of their accounting year-end.
Value-added tax (VAT) is a consumption tax that applies to most goods and services in Nigeria. The current rate of VAT is 7.5%, and businesses are required to register for VAT with the FIRS if their annual turnover exceeds ₦25 million.
Withholding tax is a tax deducted at source on certain payments such as rent, royalties, and professional fees. The rates of withholding tax range from 2.5% to 10% depending on the nature of the payment.
Capital gains tax is applicable on the disposal of chargeable assets, including shares, land, and buildings. The rate of capital gains tax is 10%.
The tax calendar for corporate taxpayers requires companies to file their annual tax returns within six months of their accounting year-end. Quarterly payment of estimated income tax is also required. Personal income tax is due annually on or before 31st of March, for the preceding year.
Tax payments are made through designated banks, and taxpayers are required to obtain a tax identification number (TIN) from the FIRS before making any tax payment.
In summary, the taxation system in Nigeria is complex and governed by various tax laws and regulations. Businesses and individuals are required to comply with the tax laws and file their tax returns and payments within the specified deadlines to avoid penalties and interest charges.
Application without registration
The first director
The second director
The third director
The first shareholder
The second shareholder
The third shareholder
Articles
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