Opening a company in Nigeria in 2021, as well as opening an account in a Nigerian bank, will be the right decision for those who are planning to open a medium or large business in Africa or are looking for a profitable investment project.
The Federal Republic of Nigeria is an independent country located in the western part of the African continent and washed by the waters of the Gulf of Guinea. Nigeria has the 1st largest population among African states and is also a leading oil producer.
Among the closest neighboring countries: are Cameroon, Benin, Chad, and Niger.
The main sectors of the economy are the extraction of natural resources (oil, coal, tin), agriculture, fishing, and industry (cotton, footwear, leather, cement, textile, chemical, and aluminum).
The capital is Abuja. Among the largest cities are Kano, and Lagos.
The state currency is the Nigerian Naira (NGN). Official languages: Igbo, Yoruba, and English. The population of the state is more than 201.7 million people. The country’s climate is equatorial/subequatorial.
Participation in international organizations: African Development Bank, ECOWAS, IAEA, OPEC, OIC, AU, WTO, and others.
Key business benefits
Those wishing to register a company in Nigeria remotely expect quite favorable conditions for doing business, in particular:
- Stable economic growth;
- Dynamically developing infrastructure;
- Trade with Spain, France, India, and Brazil;
- Existence of agreements on avoidance of double taxation;
- Available labor resources;
- The possibility of obtaining state grants for the development of the agro-industrial sector;
- The presence of 14 special economic zones;
- Flexible taxation system.
If you decide to open a company in Nigeria in 2021, then you should consider the following most-promising business areas: oil and processing industry, food industry, light industry, construction, medicine, IT technologies, transport, and tourism.
Types of companies in Nigeria
Registration of a company in Nigeria begins with choosing the most optimal OPF for doing business. If you are going to open a startup or expand an existing business, you can open the following companies:
- Limited Liability Company (LLC);
- Free Zone Company (FZC);
- Limited Liability Partnership (LLP);
- Joint Stock Limited Liability Company (Public LC);
- Branch (B);
- Representative Office (RO).
If you decide to open a company in Nigeria remotely and open an account for a company in a bank in Nigeria, then we advise you to opt for one of the most popular forms of economic activity, namely: a free zone company (FZC). We also recommend paying attention to a limited liability partnership (LLP), which offers comfortable conditions for doing international business.
Registration process
Those who are going to register a company in Nigeria will need to fulfill the following requirements of the Regulator:
- The unique name of the company (the chosen OPF must be indicated at the end);
- Required number of directors: minimum 1 (legal/natural persons);
- Required number of shareholders: minimum 2 (individuals/companies);
- Resident status of director/shareholder: any;
- The presence of a secretary: is required;
- The size of the authorized capital of the enterprise: 60,000 USD;
- Physical local office: required;
- Annual filing of reports: yes.
Tax regime
If you are interested in the opportunity to register a company in Nigeria, then by all means study the taxation conditions for legal entities, in particular:
The basic corporate tax rate is 30%. It is allowed to reduce the tax rate up to 20% for agricultural and industrial enterprises, as well as companies focused exclusively on export (first 5 years), whose annual turnover is no more than 1 million NGN;
VAT is 5%;
Capital repatriation tax: 10%.
Main advantages:
- Annual growth of economic indicators;
- Existence of agreements on avoidance of double taxation with most countries;
- Availability of inexpensive labor force;
- The presence of special economic zones;
- Relatively flexible taxation.
There are currently no specific rules for controlled foreign companies in Nigeria.
