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Requirements for a Foreigner to Register a Business or Company in Nigeria



The Companies and Allied Matters Act (CAMA) 2020 refers to foreigners as “aliens” and defines an “alien” as “a person or association, whether corporate or unincorporated, other than a Nigerian citizen or association, a company, business name or association incorporated or registered in Nigeria.” 

Can these foreigners operate companies or businesses in Nigeria, and if so, under what circumstances? Section 20(4) of the CAMA answers this question in the affirmative:

“Subject to the provisions of any enactment regulating the rights and capacity of aliens to undertake or participate in trade or business, an alien or a foreign company may join in forming a company.” 

So, generally, foreigners and foreign companies can register and own companies in Nigeria, subject to certain requirements prescribed by certain government regulatory agencies in Nigeria, such as the Corporate Affairs Commission, the Ministry of Trade and Investment and Nigerian Immigration Service.

Requirements for Foreigners

Before a foreigner can undertake or register a company or business in Nigeria, he must have a residence permit. This notwithstanding, a foreigner, whether residing within or outside Nigeria can participate in a company in Nigeria by being a shareholder of the company. But he cannot be a director or secretary of the company. To function as a director or secretary of the company, a foreigner must acquire a Nigerian residence permit. The agency responsible for issuing residence permits in Nigeria is the Nigerian Immigration Service. Once a foreigner meets the requirements for the issue of the permit, he will get one. The permit is renewable every year at a certain fee. See the requirements here.

So, let’s say you are a South-African citizen seeking to do or register a business in Nigeria. You have two options. Option one is to simply own equity in a company, either by being the sole or major shareholder. Option two is to be directly involved in the running of the company or business, either as a director, proprietor or partner in the company or business. While you won’t require a residence permit for the first option, you will definitely require one for the second option. 

Apart from the residence permit, the other requirements for registration are the same with those for Nigerian citizens seeking to register a business name or company in Nigeria. The other thing worth noting is that the best valid ID for a foreigner to submit for registration is his/her International Passport. And the Int’l Passport must be current and not expired.

Requirements Foreign Companies

Generally, foreign companies cannot operate in Nigeria. Before foreign companies can operate in Nigeria, they must first be incorporated in Nigeria. If they fail to do so, every activity or business carried out by them will be illegal. 

Some companies are however exempted from registration. They are called “Unregistered Companies”. They include companies of engineering consultants and technical experts which have been invited into Nigeria by the Federal or State Governments for specialised projects. 

To obtain exemption from registration, a foreign company must apply to the Minister of Trade (presently the Minister of Trade and Investment).

Articles on this site are meant for general knowledge only, not as professional advice. If you need personal advice on matters contained herein, you are advised to contact a professional.

We are a firm of legal practitioners and CAC certified agents. We help business owners, entrepreneurs and associations register their businesses, companies and associations with ease. If you need our help with any of the matters contained in the article, feel free to send us a mail at niyiama@yahoo.com or reach us on WhatsApp @ +234-08126194751.



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