The hospitality industry in Nigeria is highly profitable, with substantial returns on investment. However, to enter this business, would-be investors have to comply with a very comprehensive legal and regulatory process.

1. Legal Structure and Company Registration

As a preliminary step towards commencing business, the hotel business has to be registered with the Corporate Affairs Commission (CAC). Profit-seeking business is optimally structured as a limited liability company.

Lagos State Incorporation Requirements include:

• Two proposed company names to be submitted for CAC screening and approval.
• A registered business address in Nigeria, with an operational email address and phone number.
• Shareholders’, directors’, and company secretary’s details, including name, home addresses, contact details, date of birth, occupation, National Identification Numbers (NIN), and digital signatures. Foreign nationals may use their international passports as identification.
• The Memorandum of Association object clause should specifically state the hotel or hospitality business objective.

2. Federal Inland Revenue Service (FIRS) Registration

All companies must be registered with the Federal Inland Revenue Service for taxation purposes.

Required documents:

• Letter on the company letterhead,
• CAC Certificate of Incorporation,
• Details of company directors, and
• A utility bill for the company’s registered address.

3. SCUML Registration

Hotels are treated as non-designated financial institutions and are, therefore, liable to register with the Special Control Unit Against Money Laundering (SCUML) under the Economic and Financial Crimes Commission (EFCC). Registration under SCUML safeguards the firm against money laundering risk and is a condition of corporate banking.

SCUML registration documents include:

• Certificate of Incorporation,
• Memorandum and Articles of Association,
• Tax Identification Number (TIN),
• Bank Verification Number (BVN), name of bank, account number.

4. Intellectual Property Protection

Although not mandatory, it is advisable that hotels trademark and intellectual property be registered at the Nigerian Trademarks Registry to protect brand identity and prevent infringement.

5. Registration with Nigerian Tourism Development Corporation (NTDC)

The NTDC is the regulatory body that oversees tourism and hospitality in Nigeria. Hotels doing business in Lagos or other places within the country are required to register with the NTDC.

Requirements for NTDC registration include:

• Fully filled application form

• CAC Certificate of Incorporation,
• Applicants’ identification documents,
• Memorandum and Articles of Association,
• Tax clearance certificates of directors’ personal tax for the past three years,
• Bank reference letter,
• Company profile,
• CVs of main staff (with professional licenses where relevant),
• Passport photos of the Managing Director/CEO,
• PAYE tax remittance for employees,
• Receipt for Directors’ development levy,
• Proof of payment of mandatory fees, and
• Any other document as required.

6. Nigerian Investment Promotion Council (NIPC) Registration

For both local and foreign investors, registration with the NIPC is compulsory for facilitation and promotion of investment in Nigeria’s hospitality sector.

Documents required are:

• Duly completed NIPC Form I,
• Memorandum & Articles of Association,
• Certificate of Incorporation,
• CAC Form 1.1,
• Power of Attorney or Letter of Authority (where applicable),
• Evidence of payment of the non-refundable N15,000 registration fee,
• NIPC payment receipt.

7. Compliance with Data Protection Laws

Hotels handle sensitive personal data of employees and visitors and thus must comply with data protection law, in particular the Nigerian Data Protection Act that oversees data collection, storage, and processing regimes.