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Investors who set up a company in Nigeria require in-depth local knowledge as setting up a company in Nigeria can be complex and frustrating. In fact, many international entrepreneurs are put off from setting up a company in Nigeria simply because of the difficulties of doing so. That said, Healy Consultants has assisted several clients with a range of services to support the setting up of a company in Nigeria. The following information will help you determine whether or not to set up a company in Nigeria:
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Benefits to setting up a company in Nigeria
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Nigeria is a regional economic and political power and setting up a company in Nigeria is an effective way to tap opportunities. Investors typically choose to set up a company in Nigeria as a legitimate way to operate in Nigeria and other West African markets.
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Nigeria's population of 132 million and abundant natural resources present major opportunities for investors planning to set up a company in Nigeria.
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Export processing zones offer incentives to investors planning to set up a company in Nigeria. When setting up a company in Nigeria, foreign entrepreneurs benefit from:
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(i) Tax exemption from all Federal, State and Local Government taxes, rates, customs duties and levies;
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(ii) 100% foreign ownership when setting up a company in Nigeria;
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(iii) Duty-free import of raw materials for finished goods destined for re-export after setting up a company in Nigeria;
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(iv) No restrictions on capital remittances;
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(v) No restriction on hiring expatriate labour after setting up a company in Nigeria;
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(vi) Rent-free land during the first six months of construction after setting up a company in Nigeria and obtaining a construction permit.
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4.
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Foreign investors who set up a company in Nigeria can own 100% of the company.
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5.
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To set up a company in Nigeria, a minimum capital of 100,000 naira (US$850) is required.
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Having set up 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.
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Disadvantages of setting up a company in Nigeria
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The World Bank ranks Nigeria as 125th easiest place to do business (view the World Bank survey).
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Nigeria is politically and economically unstable, which discourages some investors who wish to set up a company in Nigeria. |
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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. |
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A minimum two shareholders and directors is required to set up a company in Nigeria.
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5.
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The process to set up a company in Nigeria is time consuming and complex.
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6.
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After setting up a company in Nigeria, a corporate profits tax of 30% is levied on global income. Company dividends are taxed at 10%.
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7.
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After setting up a company in Nigeria, all foreign-invested companies in Nigeria are required to have their financial statements audited annually.
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Contact Us For more information on how to set up a company in Nigeria, email email@healyconsultants.com or call (+65) 6735 0120. Back to Nigeria Company Formation page. |
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