To operate seamlessly in Nigeria, foreign-owned companies must obtain business permits and other required licenses. Foreigners seeking to work as employees or control companies in Nigeria must also get expatriate quotas through those companies.
The Federal Ministry of Interior in Nigeria controls foreign business activity and immigration by issuing permits that determine the number of foreign investors allowed in the country.
BUSINESS PERMIT�
To conduct business in Nigeria, foreign entities must obtain a business permit from the Federal Ministry of Interior on behalf of the Federal Government of Nigeria. This document authorizes foreign-owned companies to legally operate in the country. If a company is fully owned by foreigners, they must acquire the permit prior to commencing any business activities.
Section 36(1)(a) and (b) of the Immigration Act (2015), as well as Paragraph 4 of the Immigration Regulations (2017), stipulate that only Nigerian citizens are permitted to practice a profession, establish or take over any trade or business, or register or take over any limited liability company without first obtaining written consent from the Minister of Internal Affairs.
EXPATRIATE QUOTA
The Expatriate Quota allows foreigners to legally work and reside in Nigeria. Companies apply for the quota to hire foreign employees. The quota also enables foreigners who own or direct registered Nigerian businesses to obtain residency. The Federal Ministry of Interior, on behalf of the Federal Government, issues three-year Expatriate Quotas, renewable upon expiration.
After securing a quota, companies can get Subject to Regularization Visas for their expatriates to subsequently obtain Combined Expatriate Residence Permits and Aliens Cards. These authorize foreigners to live and work in Nigeria. Per the Immigration Act of 2015, foreigners with business permits must fit their company’s Expatriate Quota.
REQUIREMENTS FOR OBTAINING A BUSINESS PERMIT IN NIGERIA
The requirements for obtaining a business permit in Nigeria include the following:
- The certificate of incorporation of the applicant’s company
- Tax Clearance Certificate
- Memorandum and Articles of Association
- The CAC Application status
- The shareholding of the company.
- Joint venture agreement
- Approval from all appropriate professional bodies. This approval depends on the type of business being carried out by the company.
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REQUIREMENTS FOR OBTAINING AN EXPATRIATE QUOTA IN NIGERIA
The requirements for the grant of an expatriate quota include the following:
- Duly completed registration form
- Incorporation documents, which include a Certificate of Incorporation, Memorandum and Articles of Association, Application Status including the particulars of the directors of the company
- Feasibility report to be registered with CAC
- Certified current audited account and bank reference letter
- Annual income tax clearance certificate of each expatriate staff
- Proposed annual salary to be paid to the expatriate worker indicating their designation, names, and duration of employment
- Joint Venture Agreement (JVA) for partnership ventures between Nigerians and foreigners
- Company’s Tax Clearance Certificate
- Lease agreement or C of O for operating premises
- Particular of training programs for Nigerians
- List of Nigerians working in the company to understudy the expatriates
- License permit from government agencies where the company engage in specialized sectors such as the oil and gas sector, telecommunications, health, etc.
- Certificate of capital importation where Applicant wants to import capital into the country
- Business Permit
CONCLUSION
In conclusion, the government has simplified the approval process for Expatriate Quotas to avoid overburdening investors willing to do business in Nigeria. This ensures that foreign directors and business owners can easily obtain expatriate quotas. In practice, companies with foreign ownership often process business permits concurrently with expatriate quotas.
The information provided in this article aims solely to educate readers generally.it does not establish an attorney-client relationship with our law firm or constitute legal counsel.Please contact us directly for any specific legal assistance required.