Business entities in Nigeria in 2024

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Wholly foreign owned entities

Nigeria's different business entity types setup requirements

  1. Foreign entrepreneurs interested in doing business in Nigeria can wholly own a limited liability company (LLC) with a minimum of 2 shareholders and 2 directors of any nationality. The minimum share capital is US$1 and the entire setup process can be completed within 6 weeks;
  2. Foreign corporations are unable to create a wholly foreign owned presence in the country by setting up a Nigeria branch office or Nigeria representative office. Nigeria’s companies law requires all foreign businesses desiring to do business in Nigeria to establish a company. None of these entities require Nigerian nationals to be involved as shareholders or resident directors;
  3. Free zone companies allow international entrepreneurs to import and export goods from the country with tax advantages on VAT and customs duties.

Private limited company

An LLC, referred to as the “Private limited company” in Nigeria, is the most common entity used for Nigeria company setup. As always, the company is a separate legal entity or person. In particular, a company is separate from its owners, shareholders, and the persons who run it, the directors.

Comparison of Nigeria entities

Summary at a glance Private company
Company incorporation costs US$9,690
Subsequent annual costs (excl accounting and tax fee) US$6,760
How long to set the company up? 5 weeks
How long to open company bank account? 5 weeks
Issued share capital required 0
Is doing business permitted? Yes
Allowed to sign sales contracts with Nigerian Clients Yes
Allowed to invoice Nigerian Clients Yes
Corporate tax payable in Nigeria 30%
Corporate bank account SCB
Can rent office premises in Nigeria Yes
Tenancy agreement required before incorporation? Yes
Allowed to import raw materials? Yes
Allowed to export goods? Yes
Can the entity hire expatriate staff in Nigeria? Yes
Do you visit Nigeria for company incorporation? No
Resident director required? No
Resident shareholder required? No
Minimum number of directors 2
Minimum number of shareholders 2
Nigeria resident company secretary Yes
Tax registration certificate required Yes
Individual shareholders allowed Yes
Corporate shareholders allowed Yes
Corporate director(s) allowed No
Public register of shareholders and directors Yes
Nigerian employment visa fees US$3,950
How long to get work permit approved 3 months
Statutory audit required Yes
Annual tax return to be submitted Yes
Access to Nigeria double tax treaties Yes
Total company set up costs US$20,700
Draft invoice View invoice PDF

Contact us

For additional information on our company setup services in Nigeria, please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal
Central bank of Nigeria Nigeria customs service (NCS) Financial services regulation coordinating committee (FSRCC) in Nigeria The lagos chamber of commerce and industry Federal ministry of finance in Nigeria