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FREQUENTLY ASKED QUESTIONS

GENERAL FAQs

Can I be the only shareholder in my company?

A: No, Nigerian law does not permit this presently; it has to be a minimum of two people.

Can I be the only director in my company?

A: No, the Companies and Allied Matters Act (CAMA) does not permit this presently, it has to be a minimum of two people.

Can we have more than one proprietor for a business name?

A: Yes, the law permits having more than one proprietor.

Why do I have to select an alternate company / Business name for search?

A: This is not compulsory, but where the 1st name is not available, the alternate name would hopefully be approved.

How long does it take before I get my certificate?

A: Between 2-3 weeks from the day you have a complete name registration and approve all documents, We sincerely hope and strive to deliver it to you earlier than this time. (Company)
A: 2 weeks from the day you have a complete name registration and approve all documents,. We sincerely hope and strive to deliver it to you earlier than this time (Business name)

Is LegitNG a law firm?

A: No, legitng is not a law firm, and we only provide registration services and general information. We suggest you seek the opinions of lawyers on particular issues. Where you don’t have a lawyer on hand, we can provide introduction to top lawyers and law firms in your area.

Do your documents and services have legal backing?

A: Yes, we ensure legal documents are prepared by certified lawyers, and keep them updated.

Is information supplied on this site confidential?

A: Yes, we treat all information and documents of our clients as highly confidential and keep them in encrypted forms. We also shall not release details of customers to third parties.

How is my work delivered to me?

A: We shall ensure to deliver the documents to provided emails and physical addresses, but where for one reason or the other, this proves impossible, then it will be available for pick up at any of our contact addresses provided to you.

Why do I have to make full payment?

A: This is necessary to facilitate a faster delivery of the work, as most of the payments will be made to the necessary agencies.

Is my payment secure?

A: Yes, we treat the security of our customers with high priority, thus we have engaged the services of a reputable secure payment platform to ensure the security of card details, and reduce security risks to barest minimum.

Can I use your platform despite having my own lawyer?

A: Yes you can, the platform is to help facilitate the process faster, not in any way intended to replace the role of your lawyer.

FOREIGN FAQs

What options are available for registering a business in Nigeria?

A: There are a number of company structures which are recognized by the Companies and Allied Matters Act 1990 of Nigeria. These include a private company limited by shares; a private company limited by guarantee; and a public company limited by shares. A foreign company may incorporate a company in Nigeria using one of these structures.

Can a foreign economy operate a representative office/branch in Nigeria?

A: Notwithstanding that a foreign company may regard its proposed Nigerian operations as a branch or subsidiary, its Nigerian operations would have to be undertaken by a separate registered legal entity in accordance with section 54 of the Companies and Allied Matters Act 1990 which provides that in order to do business in Nigeria, a foreign investor must incorporate a separate entity in Nigeria, and until a foreign company is so incorporated it shall not have a place of business or an address for service of documents or processes in Nigeria for any purposes other than the receipt of notices and other documents as matters preliminary to incorporation.
Where a foreign company intends to set up a Representative Office in Nigeria. The Representative Office still has to be registered with the CAC.

Can the Nigerian entity be fully foreign owned?

A: Yes, the entity can be fully foreign owned. However, certain sectors of investment require local content participation of Nigerians such as the oil and gas sector and where foreigners look to participate in these sectors, we advise that they comply with the government’s requirement for local content.

How long does each company set up take?

A: This generally depends on the type of company sought to be registered. However, registration of a private company limited by shares should take between 0ne to three working weeks.

Are resident shareholders/directors required under Nigerian law?

A: No, there is no requirement for resident directors or shareholders.

Is there corporate taxation and how much is the corporate tax?

A: Yes, there is a corporate tax of 30% of the annual profit of the company.

Are there other tax liabilities or contributions?

A: Yes, there are other tax liabilities. value added tax at the rate of 5% for consumption of goods and services, capital gains tax at the rate of 10% on gains realized from the disposal of chargeable assets, stamp duties for transaction documentation. The Company is also required to pay education tax of 2%. The company is also required to make monthly contributions into pension funds for its Nigerian employees.

Is a tax registration certificate required?

A: In its start-up phase, the company will apply for the issuance of a Tax Identification Number for purposes of tax remittance. The company may then get tax clearance certificate (TCC) as evidence of payment of tax. The company may be required to present its TCC in its dealings with third parties or when interfacing with other regulatory bodies.

Are annual tax returns required?

A: Yes. Annual tax returns are required..

Is there a minimum capital requirement for incorporation?

A: Yes. Under Nigeria Law, the minimum share capital of a private company is N10,000 (Ten thousand naira) and N500,000 (Five hundred thousand Naira) for a public company. However, because a foreign company is required to obtain a business permit before commencement of operations, one of the conditions to be fulfilled is that such foreign company must have an authorized share capital of N10 million (Ten Million Naira).

What is the time-frame for registering a company’s bank account?

A: If all requirements are met, it should take maximum of 3 working days after obtaining a certificate of operation to open a company bank account.

Are there any statutory audit requirements?

A: Yes. the company is required to appoint auditors who shall make a report to its members at the general meeting . The company is required to file the audited account alongside the annual returns form to corporate affairs commission. For tax purposes, the tax authorities are statutorily empowered to carry out an audit on the company.

Is a business license required to operate?

A: Yes. Other than the Certificate of Incorporation issued by the Nigerian Corporate Affairs Commission, a foreign entity doing business in Nigeria is required by law to apply to the Nigeria Investment Promotion Commission for the issuance a business permit granting it permission to operate in Nigeria.

A: The Nigerian Company has an obligation to withhold and remit to the Nigerian government a portion of the monthly income of the staff, to be ascertained in accordance with the provisions of the applicable law. Also, expatriate quotas will need to be procured for foreign staff (if any), and company is obligated to assist the employee with getting residence permit to stay and work in Nigeria.

What is the optimal vehicle for doing business in Nigeria?

A: We recommend a private company limited by shares as it is the most preferred for its ease of administration and corporate compliance flexibility.

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