Incorporate a Company in Nigeria

Investors who incorporate a company in Nigeria require in-depth local knowledge because incorporating a Nigeria company can be complex and frustrating. In fact, many international entrepreneurs are put off from incorporating a Nigeria company because of the difficulties of doing so. That said, Healy Consultants has assisted several clients with a range of services for incorporating a Nigeria company. The following information will help you determine whether or not to incorporate a company in Nigeria:
Benefits to incorporating a Nigeria company
1.	Nigeria's population of 132 million and abundant natural resources present major opportunities for investors planning to incorporate a company in Nigeria.
2.	Nigeria is a regional economic and political power and incorporating a Nigeria company is an effective way to tap opportunities. Investors typically choose to incorporate a company in Nigeria as a legitimate way to operate in Nigeria and other West African markets.
3.	Export processing zones offer incentives to investors planning to incorporate a company in Nigeria. When incorporating a Nigeria company, entrepreneurs benefit from:
	i) Tax exemption from all Federal, State and Local Government taxes, rates, customs duties and levies;
	ii) 100% foreign ownership when incorporating a Nigeria company;
	iii) Duty-free import of raw materials for finished goods destined for re-export after incorporating a Nigeria company;
	iv) No restrictions on capital remittances;
	v) No restriction on hiring expatriate labour after incorporating a Nigeria company;
	vi) Rent-free land during the first six months of construction after incorporating a Nigeria company and acquiring a construction permit.
	For more information on the benefits of incorporating a Nigeria company, visit the Nigeria Export Processing Zones Authority website.
4.	Foreign investors who incorporate a company in Nigeria can own 100% of the company.
5.	To incorporate a company in Nigeria, a minimum capital of 100,000 naira (US$850) is required.
6.	Having incorporated a company in Nigeria, investors can take advantage of double taxation treaties Nigeria has signed with the UK, France, the Netherlands and several other countries.
Disadvantages of incorporating a Nigeria company
1.	The World Bank and US-based Heritage Foundation rank Nigeria as 125th and 106th respestively in terms of easiness of business and freedom of economy. (View the World Bank survey and the 2010 Index of Economic Freedom).
2.	Nigeria is politically and economically unstable, which discourages some investors who wish to incorporate a company in Nigeria.
3.	Nigeria is negatively ranked as the world’s 143th least corrupt country in the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. This alone has discouraged many investors from incorporating a Nigeria company.
4.	The process to incorporate a company in Nigeria is time consuming and complex.
5.	A minimum two shareholders and directors is required to incorporate a company in Nigeria.
6.	After incorporating a Nigeria company, a corporate profits tax of 30% is levied on global income. Company dividends are taxed at 10%.
7.	After incorporating a Nigeria company, all foreign-invested companies must have their financial statements audited annually.
Contact Us For more information on how to incorporate a company in Nigeria, email email@healyconsultants.com or call (+65) 6735 0120. Back to Nigeria Company Formation page.

Buy a copy of the Healy Consultants' Asia Business Set Up book for US$1000, to order call +65 6735 0120 or e-mail email@healyconsultants.com