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5 Steps To Registering A Foreign Company In Nigeria

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Friend, I want to talk to you about 5 steps to registering for foreign company in Nigeria as well as the basic requirements for doing so. So, congratulations that your business has expanded and you want to partner with a foreigner to take it to another level. Or, you are a foreigner and you want to start a subsidiary of your business in Nigeria or even open a main company of the business in Nigeria. Beautiful, Nigeria welcomes you and you are welcomes to open and run your foreign company or beautiful here in Nigeria.

However, there are certain things that are required by law for you to obtain and there are certain steps that you need to take before you can register a foreign company in Nigeria. So, in this guide, I share with you about five of those requirements and steps to registering for foreign company in Nigeria.

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Step 1: Register Your Company/ Business with the Corporate Affairs Commission of Nigeria (CAC)

The first requirement or step is for you to register your company or business with the Corporate Affairs Commission of Nigeria (CAC). This is an agency of the Federal Government of Nigeria that is saddled with the sole responsibility of registering both local and foreign companies, entity and business in the country. One of the requirements for registration of a foreign company in Nigeria is that one of the directors of your company must be a Nigerian.

Let’s say for example that you are coming in from the United States of America (USA) to transact business with Nigeria or to register your company in Nigeria. Before you can transact that business or carry out your business in Nigeria, you have to register it and one of your directors must be in Nigerian. All of you cannot be Americans, okay?

Another requirement for you to register your business with the Corporate Affairs Commission as a foreign company is to have a minimum of Ten Million Naira (N10,000,000) share capital. It could be more but that’s the minimum.

Step 2: Register Your Company with the Federal Inland Revenue Service

Now the second requirement is for you to move to the federal Inland Revenue Service to register for your Tax Identification Number (TIN) and VAT. Now, you also obtain your Tax Clearance Certificate for that year.

Step 3: Open a Corporate Account in Nigeria for the Business

Afterwards, moved into any of the commercial banks of your choice in Nigeria and register and open a Corporate Bank Account. When you have opened a corporate account, a Certificate of Capital Importation will be issued to you. All right, it just says that the amounts that each director in your company subscribes to as shareholder in your Memorandum and Article of Association will be paid into the account of that commercial bank. So, it simply means that you have to an extent paid the amount that has been subscribed in your name into the commercial bank and then you be issued with Certificate of Capital Importation by your bank because it’s going to be useful for subsequent step.

Step 4: Register with NIPC

After you have completed step 2 above, you move to registration with The Nigerian Investment Promotion Commission (NIPC). The NIPC is a federal government agency that is saddled with a sole responsibility of monitoring, encouraging, and controlling foreign participation in the business sector of Nigeria.

Step 5: Obtain All Governmental Approval and Licenses

After you’ve completed step above, you obtain all governmental approval and licenses. For example, you will need a business permit. Before your company can transact business in Nigeria, you need a business permit which will be obtained from the Ministry of Interiors. You also need a resident or work permit. Now there’s a difference between the business permit and resident permit. Resident permit simply has to do with your foreigners; the foreigner that are coming to work in Nigeria. This could be your employees, your directors, you founders, your sponsors, etc. If they are coming to work in Nigeria and they are not Nigerians, you will need to obtain a work or resident permit from Combined Expatriate Residence Permit and Aliens Card for Nigeria (CPAC).

So, you will obtain either work or resident permit for each of the foreign employees whereas the business permit is solely to enable your business or your company as a corporate entity to transact business in Nigeria. Now, if you are going to be involved in importation of anything, you would need to obtain your Importation License. If you’re going to be specialized in doing certain things, like production of certain things, you’re going to obtain all your licenses from the governmental bodies and agencies.

Conclusion

In summary, first requirement for registering your foreign company in Nigeria and/or carrying out your foreign business in Nigeria is the registration with the Corporate Affairs Commission of Nigeria (CAC). Second is registration with the Federal Inland Revenue Service for your Tax Identification. The third is to open a corporate account with any Commercial Bank in Nigeria of your choice. You then move to the NIPC to register your objective and your business with them.

Lastly, you need to obtain all governmental licenses like approval, business permit, resident and work permits, importation license, and any other thing like NAFDAC Number. It’s based on what your specialty is and what the objective of your business or company is all about. I hope this helped. If you have any question, do well to drop them in the comment section and I will attend to them. Stay safe!

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Ekemini Ekpo is a professional Blogger, Research Analyst, Internet Marketer, and Tutor. He is passionate about Business, Investment, Entrepreneurship, Finance, and Personal development.

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Full Biography And Net Worth Of Tunde Ednut

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All You Need To Know About Hotel Management in Nigeria

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What is the secret to success in Nigeria’s hotel management industry? The key to success for an investor in the real estate market especially in the hospitality industry in Nigeria has been the same as what it has for the last 100 years and that is the location of the hotel. To win the game however, you need a number of things including successful marketing, good planning, wonderful architects and engineers, and professionals who can help you along the way. Sometimes, you may need a bit of luck to break through.

That being said, what is the outlook for hotel management in Nigeria? What is Nigeria’ potential to offer hotel services which are truly a home away from home? This article covers these and provides use tips in the Nigeria’s property trade specifically in hotel management industry.

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Time, patience and consistency in quality are essential to the success of hotel management in Nigeria from design to construction and subsequent management of the hotel. It might interest you to know that Lagos state, Nigeria is the most preferred destination of choice when it comes to investing in the hospitality industry in Nigeria. This is so because the state is home to major International Airport in Nigeria and Africa, has a huge number of airlines flying in both international and domestic, a large number of Companies and their subsidiaries, a large population and the availability of a large pool of basic and social amenities. So, it is inevitable that the highest volume of demand for quality hotel accommodation is in Lagos. This attracts a lot of local and international investors to develop and/or manage hotels in this part of the country.

But there is a little problem…

The tourism sector in Africa is said to be one of the fastest growing in the world. Visitors are attracted to the rich cultural heritage and natural beauty of Africa. However, while the South African market continues to see a rise in the number of international visitors flooding in, Nigeria has not done as well as expected over the past three years. The outlook remains bleak as the real estate sector sits in a recession.

What could be responsible for this?

The reason is not far-fetched. The hotel industry relies on the many other sectors of the economy especially the oil and gas industry for its demand, for its hotel rooms. Following what’s happened since 2014 with the plunging prices of oil and in 2015 the plunging output, things have since taken a downward turn for the hospitality industry in Nigeria. When the oil and gas industry/economy in Nigeria is not thriving, the hotel industry also catches a cold. But this isn’t stopping savvy investors from coming into the market. Lagos, for example, has seen an increase in the number of luxury hospitality brands springing up.

This background is necessary to give you an idea of what the hospitality industry in Nigeria and how to go about hotel management in Nigeria as an investor or as a job seeker.

Hotel Management in Nigeria for Investors (Local and International)

So, if you want to invest in hotel management in Nigeria, these are the things to do:

  1. Have A Vision For The Niche You Want To Play In

The first thing is for you to decide on the particular niche of hospitality industry you want to key into, the kind of hotel you want to build. You need to decide on the quality of staff and management you want to implement in your ideal hotel. This is where it starts for an investor.

  1. Get The Consultants To Help You Make The Vision A Reality

Once you decide on the vision for your hotel, you have to then gather the consultants who are able and capable in that those areas and in those levels. Then, you pass on the vision to them and see to it that they implement everything according to the plan.

The Challenges…

There are a number of roadblocks that you are likely to face in putting up and managing a hotel in Nigeria and these are discussed below.

  1. Trade Problems

First and foremost, there is generally difficulty in getting people who can deliver to the standard you want. Another trade problem is compliance problems. Sometimes, it is difficult to get a consultant to stretch themselves to meet the specification and standard. This may warrant having to repeat a process over and again to get the quality and standard that you desire.

  1. Governmental, Equity, and Management Problems.

In Nigeria, there is the usual problem of governmental authorities who come to demand one thing or the other and sometimes delay or request that the job be stopped for whatever reason. Besides, there is the issue of finance. The interest rates are very high and you are to have a lot of equity; your own equity and then the actual management of your hotel. It is not easy to deliver first-class service, five star hotel services in Nigeria. Sometimes, the management team has to be trained and retrained and followed-up to get the desired result.

Employment Opportunities in Hotel Management in Nigeria

Due to the complexity of the hospitality industry and the variegated needs of people, there is a huge demand for different skilled workforce in the hospitality industry. As it applies elsewhere, so does it apply to Nigeria. That is why today there are various hotel management job openings in the hospitality industry such as

  1. A hotel manager job
  2. A PR manager job
  3. A restaurant manager job
  4. A hotel administrator job
  5. A catering manager job

How to Become A Hotel Manager in Nigeria

To become hotel manager in Nigeria, you have to be trained and certified. In Nigeria, there are several companies that train and certify people as hotel managers in Nigeria. Some of them are:

  1. Alpha Partners.
  2. Hospitality and Tourism Management Association of Nigeria or simply HATMAN.
  3. Legend Hospitality Managers Limited.
  4. National Institute for Hospitality and Tourism or simply NIHOTOUR.
  5. Hospitality Legend Limited.
  6. Passionview Solutions Limited.
  7. And many others.

Salary of Hospitality Manager in Nigeria

The average salary of a hotel manager in Nigeria as of 2019 was about N500,000 per month. Roughly, it is between N375,000 per month to N650,000 per month. This must have increased or decreased by now. How much you earn depends on several factors like the volume of remuneration earned by the hotel you work at. This also depends on the location, the number of outlets and the volume of investments done by the hotel administration. Another factors that might influence how much you are paid as a hotel manager in Nigeria is the your experience and professionalism in the hospitality industry as well as the possession of other unique skillsets.

Hotel management in Nigeria whether seen from the angle of investment of a job is a lucrative industry to play in. It offers a lot of potential to anyone interested in it to learn, earn and grow at the same time. Now that you know what hotel management in Nigeria entails, the question is, “would you like to come in? if not, why?” Let me have your response in the comments box below. Thank you and have a blessed day ahead.

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How to Set up Your PayPal Account Without Stress

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In this article, I’m going to walk you through the step-by-step process on how to set up PayPal account right now. To access the PayPal homepage, go to https://www.paypal.com/.

Now, the first thing that you need to decide is whether you’re going to go with a personal PayPal account or a business PayPal account. The vast majority of people go with the personal account now. The personal PayPal account is great for buying goods and services online. Also, it enables you to transfer funds between your own PayPal account and friends and family at no fee charge to you. You may want to link your Credit Card or Debit Card to your PayPal account as well as a bank account to give you different options for paying for things online.

That is to say that you can also transfer funds around between those accounts linked with your Credit Card or Debit Card and your bank account. So, a personal account is great by itself and the majority of people go with it. You may want to go with a business PayPal account if you’re selling goods and services with this PayPal account or if you’re going to be accepting donations. These are the situations where you probably want to go with that business PayPal.

Also Read: Venture Capitalist Firms in Nigeria You Should Trust

How to set up your PayPal account without stress

How to set up your PayPal account without stress

Steps to Set Up Paypal Account without Stress

There are four (4) simple steps to set up Paypal account without stress and they are

  1. Begin Sign-up Process
  2. Provide Your Biometric Information
  3. Link Card/Bank Account
  4. Registration Complete!

Step 1: Begin Sign-up Process

Visit https://www.paypal.com/ and on the homepage, click “Sign Up For Free”. You will be taken to a new page, the sign-up page. On this page what you need to do is type in your legal first name, your legal last name as well as the email that you want associated with your PayPal account. Also, you will provide a password and you need to confirm that password and then click “Next”.

Step 2: Provide Your Biometric Information

Once you’ve complete all the steps above, you will be taken to the next page. On this new page you’re going to type in your personal address, the city, the state, the zip code, and a phone number whether it is your home phone number or mobile phone number. If you care, you may go through the e-communication delivery policy, the user agreement and privacy statement. If you’d not like to do that, check the tiny box below to agree to the terms and privacy policy. Then, go ahead and click, “Agree and Create Account”.

Step 3: Link Card/Bank Account

After you’ve completed the above, you will be taken to the next screen and on this page you will be offered the option to link a debit/debit card or link a bank account instead. It’s up to decide what you want to do here.

Also Read: Best Locations for Fintech Companies in Nigeria

Linking a Debit/Credit Card

Let’s say you decide to link a debit card. So, what you are going to enter in is your card information namely the debit card number, the expiration date and the CVC. Once you’ve done that, the billing address is going to automatically fill in with whatever you filled in as your address earlier on in this process. If your billing address is different from your home address that you used in the earlier portion of this application, you can change that in this area.

But as soon as you’ve entered in that information you can go ahead and click link card.

Step 4: Registration Complete!

Once you’ve linked your Debit/Credit card or bank account, it will take you to the last page with an icy green checkmark showing that your registration was successful, your card is completely linked and that everything is set up ready for use.

You may now proceed to use your PayPal account for shopping, sending money, transfers, and a ton of different things that you can use your PayPal account for. So, scroll down to the bottom and click on “Go To Your Account” and this will officially take you to your brand-new PayPal account page and that’s exactly how to set up PayPal account without stress.

N/B: not all countries are allowed to receive money using PayPal and the restricted countries are Angola, Anguilla, Armenia, Aruba, Azerbaijan Republic, Belarus, Benin, Bhutan, Bolivia, British Virgin Islands, Brunei, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Chad, Comoros, Congo, Democratic Republic of Congo, Republic of Cook Islands, Côte d’Ivoire, Djibouti, Eritrea, Ethiopia, Falkland Islands, Gabon Republic, Gambia,Guinea,Guinea-Bissau,Guyana,Kiribati,Kyrgyzstan,Laos,Macedonia,Madagascar,Maldives,Mali,Marshall Islands, Mauritania, Mayotte, Micronesia, Federated States of Mongolia, Montenegro, Montserrat, Namibia, Nauru, Nepal, Netherlands Antilles, Niger, Nigeria, Niue, Norfolk Island, Papua New Guinea, Paraguay, Pitcairn Islands, Rwanda, Saint Helena, Saint Pierre and Miquelon, Saint Vincent and the Grenadines, Samoa, Sao Tome and Principe, Sierra Leone, Solomon Islands, Somalia, Sri Lanka, Suriname, Svalbard and Jan Mayen,Swaziland,Tajikistan,Tanzania,Togo,Tonga,Tunisia,Turkmenistan,Tuvalu,Uganda,Ukraine,Vanuatu,Wallis and Futuna Islands, Yemen, Zambia, and Zimbabwe

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